\u3000\u3 Guocheng Mining Co.Ltd(000688) 533 Suzhou Sonavox Electronics Co.Ltd(688533) )
The company’s revenue of power amplifier / AVAs products in 2021 was + 110% / + 114% year-on-year respectively
On April 27, Suzhou Sonavox Electronics Co.Ltd(688533) released its annual report for 2021, with a total revenue of 1.3 billion yuan in 2021, a year-on-year increase of + 19.7%; The net profit attributable to the parent company was 60 million yuan, a year-on-year increase of – 19.7%. In 2021, the company’s revenue of loudspeaker / vehicle power amplifier / AVAs was 1.14/0.82/0.26 billion yuan respectively, with a year-on-year increase of + 12.9% / + 110% / + 114% respectively. In 2021, the company’s overseas revenue was 675 million yuan, accounting for 52% of the total revenue. Considering that the epidemic situation in Shanghai and other places has affected the company’s export business since 2022, and the company’s downstream customers have also been greatly affected by the epidemic prevention and control, we lowered the company’s profit forecast for 2022, maintained the same profit forecast for 2023, and added the profit forecast for 2024. It is estimated that the company’s net profit attributable to the parent company from 2022 to 2024 will be 109 (- 0.35) / 223 / 303 million yuan respectively, and EPS will be 68 (- 0.22) / 1.39/1.90 yuan / share, corresponding to 57.7 / 28.1 / 20.6 times of the current share price, The large volume of new products brings high growth and maintains the “buy” rating of the company.
Rising prices of raw materials & rising sea freight charges for export, putting pressure on the company’s profit in 2021
In 2021, the prices of the company’s main raw materials, including rare earth, steel and plastic particles, increased significantly, and the company’s export business accounted for a high proportion of revenue. The company’s profits were dragged down by the shortage of shipping capacity and high freight. In 2021, the company’s comprehensive gross profit margin was 26.7%, year-on-year -2pcts, and the net profit margin was 4.7%, year-on-year -2.3pcts. In terms of products, the gross profit margin of the company’s loudspeaker / vehicle power amplifier / AVAs products in 2021 was 24.7% / 33.0% / 18.0% respectively, with a year-on-year increase of – 2.6 / + 1.2 / – 13.6pcts respectively. Quarterly, the net profit attributable to the parent company of Q1-Q4 in a single quarter in 2021 was 0.22/0.09/0.14/0.16 billion yuan, and the net interest rate in a single quarter was 6.9% / 3.0% / 4.3% / 4.2% respectively.
With the release of production capacity of IPO raised investment projects, new businesses are expected to usher in rapid growth
In 2021, the company won the new project designation of Ford, general motors, Volkswagen, Chery, Byd Company Limited(002594) , Weilai automobile, Zero run automobile, ideal automobile and other automobile enterprises. The new force projects are supplied in batches one after another, which is expected to drive the diversified development of the company’s customer structure. In addition, the company is also expanding the production capacity of speakers, power amplifiers, AVAs and other products. Rusheng electronics has built a new SMT line and general assembly line for the production of on-board power amplifiers and AVAs. With the capacity release of IPO raised investment projects, the company’s new business is expected to enter a rapid growth period.
Risk tip: the demand for automobiles at home and abroad is less than expected, the sales volume of downstream customers is less than expected, and the expansion of overseas market is less than expected.
