\u3000\u3 Guocheng Mining Co.Ltd(000688) 696 Chengdu Xgimi Technology Co.Ltd(688696) )
Event: the company released the first quarterly report of 2022. In 2022, the company achieved a revenue of 1.013 billion yuan in Q1, a year-on-year increase of 24.32%; The net profit attributable to the parent company was 121 million yuan, a year-on-year increase of 35.77%; The net profit attributable to the parent company after non deduction was 103 million yuan, a year-on-year increase of 17.50%.
The intelligent projection market is growing at a high speed, leading its competitors in share. According to the data of ovicloud, the sales volume of domestic intelligent projection in China in 22q1 was 1.35 million, a year-on-year increase of 19.5%; The sales volume was 2.3 billion yuan, with a year-on-year increase of 12.6%. The intelligent projection market showed a high boom growth trend. During the reporting period, the company achieved good growth in both revenue and profit under the adverse macro environment. In the medium and high-end market, the company’s star model h3s brand internal share 22q1 reached 31.5%, far ahead of other competitors.
The profit side is stable, and R & D investment continues to increase. Profit side: in 2022q1, the gross profit margin of the company increased by 2.57pct to 37.79%. We believe that the proportion of self-developed optical machines of the company will be further increased, and the structural optimization of superimposed terminal SKU will further enhance its profitability. The net interest rate decreased by 1.01pct to 11.99% year-on-year, mainly due to the increase of expenses. Expense rate side: 22q1 sales / management / R & D / financial rate increased from + 0.11pct / + 0.57pct / + 3.30pct / – 0.17pct to 13.70% / 3.52% / 9.26% / – 0.18% year on year;
The large increase in R & D expense rate is mainly due to the increase in the number of employees and salaries and the increase in new product R & D investment. Operating cash flow: the net operating cash flow of the company decreased significantly by 321.75% year-on-year to -136 million yuan, mainly due to the increase of the company’s strategic goods preparation and employee compensation expenses.
Overseas acquisition of Shanghai Aladdin Biochemical Technology Co.Ltd(688179) business, dividends show the high growth value of the company. Recently, the company acquired Shanghai Aladdin Biochemical Technology Co.Ltd(688179) business (Intelligent projection ceiling lamp) of related party popin, Inc. by setting up a wholly-owned subsidiary xgimi Co., Ltd. in Japan. The acquisition amount includes consumption tax of about 92-128 million yuan. After the acquisition, the company further consolidated its leading position in the Japanese market and provided some experience for other overseas market development. In addition, the company plans to pay a dividend of 150 million yuan (including tax) to all shareholders in the near future, accounting for 31% of the net profit. The rich cash return of the company to all shareholders highlights the rapid growth of the company.
Profit forecast and investment suggestions. We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 669 million, 906 million and 1189 million respectively, with a year-on-year growth rate of 38.3%, 35.6% and 31.2% respectively. The company has the first mover advantage of DLP projector optical machine manufacturing and algorithm development, and maintains the “overweight” investment rating.
Risk tip: new product expansion is less than expected, industry competition intensifies, and chip supply is less than expected.
