\u3000\u3 Guocheng Mining Co.Ltd(000688) 696 Chengdu Xgimi Technology Co.Ltd(688696) )
Key investment points
Operating performance continued to grow, and Q1 profit performance was in line with expectations
In the first quarter of 2022, the company achieved a revenue of 1.013 billion yuan, an increase of 24.32% over the same period of the previous year, and realized a net profit attributable to the parent company of 121 million yuan, an increase of 35.77% over the same period of the previous year, deducting a net profit not attributable to the parent company of 102 million yuan, an increase of 17.50% over the same period of the previous year. The gross profit margin of the company was 37.79%, slightly increased compared with the same period last year, and the performance was stable. On the expense side, the company’s sales expense rate, management expense rate and R & D expense rate were 13.70%, 12.78% and 9.26% respectively. The sales expense rate remained basically stable year-on-year, and the management expense rate and R & D expense rate increased significantly year-on-year.
R & D investment has been continuously increased, and the transformation of achievements has been highlighted
In the first quarter of 2022, the company’s R & D expenditure was 94 million yuan, a year-on-year increase of 93.15%; The R & D expense rate was 9.26%, with a year-on-year increase of 55.37%. In 2021, the number of R & D personnel of the company increased from 452 at the end of 2020 to 668, 69 authorized invention patents were newly obtained, and 112 invention patents have been obtained in total. We believe that the company actively carries out R & D investment, forms effective achievement transformation, and further consolidates its own technical barriers.
Expand the overseas market and business scope of the company
At present, the company has entered Japan, Europe, the United States and other markets to promote sales through online + offline multi-channel ways. Online business development is carried out through Amazon, eBay, best buy and other platforms, and offline product sales are carried out through chain retailers and regional distributors. In addition, the company’s products are also recognized overseas, among which horizon Pro is rated as the most worthy product by European audio and Video Association EISA. Perfect production and marketing system + high recognition of products, Chengdu Xgimi Technology Co.Ltd(688696) overseas markets will further boost the company’s revenue level.
Profit forecast and valuation
It is estimated that the company’s operating revenue in 22-24 years will be 5.589 billion yuan / 7.543 billion yuan / 9.042 billion yuan respectively, with the corresponding growth rate of 38.41% / 34.96% / 19.86% respectively; The net profit attributable to the parent company was 715 million yuan / 1118 million yuan / 1324 million yuan respectively, with the corresponding growth rate of 48.03% / 56.36% / 18.43% respectively. The current market value is 18.049 billion yuan, and the corresponding PE in 22-24 years is 25X / 16x / 13X respectively.
Risk tips
The expansion of new products is less than expected, the supply of chips is less than expected, and the industry competition is intensified.
