\u3000\u3 Guocheng Mining Co.Ltd(000688) 696 Chengdu Xgimi Technology Co.Ltd(688696) )
Performance review
On April 28, the company released the first quarterly report of 2022. 22q1 achieved a revenue of 1.013 billion yuan, a year-on-year increase of + 24.3%, a net profit attributable to the parent of 121 million yuan, a year-on-year increase of + 35.77%, and a net profit attributable to the parent of 103 million yuan after deduction, a year-on-year increase of + 17.5%. The revenue met expectations and the performance exceeded expectations. In the first quarter, it is estimated that the equity incentive fee is about 10 million yuan. After excluding it, the net profit attributable to the parent company in Q1 is about + 47% year-on-year, and the net profit not attributable to the parent company is about + 29% year-on-year.
Business analysis
On the revenue side, the company’s intelligent micro investment products continue to have a high view. According to Lotu data, the sales volume of 22q1 intelligent projection in China is + 13% year-on-year. It is expected that the company’s growth rate will lead the industry, and the epidemic in March may have a slight impact on logistics delivery. The company’s overseas delivery of smart products is expected to double due to the launch of elzon Series in overseas markets. Optimistic about the sales performance of 618 peak season and new products in the second quarter.
On the profit side, the net profit margin attributable to the parent company of 22q1 was 11.99%, year-on-year + 1.0pct, and the gross profit margin was 37.8%. Excluding the changes in accounting standards, it was + 3.8pct year-on-year, which mainly benefited from the optimization of product structure. 1) China: the proportion of high-end products increased, and affected by chip supply, low-end products were temporarily off the shelves; 2) Abroad: Shanghai Aladdin Biochemical Technology Co.Ltd(688179) with relatively low gross profit margin suspended shipment, and the proportion of high-end new products of independent brands increased; 22q1 sales expense ratio was 13.7%, excluding changes in accounting standards, year-on-year + 1.4pct, with increased marketing investment; The R & D expense rate was 9.3%, with a year-on-year increase of + 3.3pct. The company continued to increase R & D investment to ensure product competitiveness.
The acquisition of Shanghai Aladdin Biochemical Technology Co.Ltd(688179) is expected to expand sales and optimize profits: the company plans to set up a wholly-owned subsidiary in Japan through its subsidiary Hainan Guangqing to acquire Shanghai Aladdin Biochemical Technology Co.Ltd(688179) business of popin Co., Ltd. at an estimated price of 92.018127.803 million yuan, which will obtain Shanghai Aladdin Biochemical Technology Co.Ltd(688179) complete brand and Japanese sales channels, better build and integrate the company’s overseas and local team and brand system, and optimize Shanghai Aladdin Biochemical Technology Co.Ltd(688179) profitability.
Profit forecast & investment suggestions
We estimate that the company’s revenue from 2022 to 2024 will be 5.662 billion yuan, 7.810 billion yuan and 10.721 billion yuan respectively, with a year-on-year increase of 40.2%, 38.0% and 37.3% respectively. The company’s net profit attributable to the parent company from 2022 to 2024 is expected to be 650 million yuan, 900 million yuan and 1.25 billion yuan respectively, with a year-on-year increase of 33.7%, 39.7% and 38.7% respectively, and EPS is 12.93, 18.05 and 25.05 yuan / share respectively. The current share price corresponds to 29.0x, 20.7x and 14.9xpe from 2022 to 2024, maintaining the “buy” rating.
Risk tips
The penetration rate of the projector is lower than expected, the core parts rely on outsourcing, and the industry competition intensifies.
