\u3000\u3 Guocheng Mining Co.Ltd(000688) 533 Suzhou Sonavox Electronics Co.Ltd(688533) )
The performance is in line with expectations. In 2021, the annual revenue was 1.302 billion yuan, a year-on-year increase of 19.7%, the net profit attributable to the parent was 61 million yuan, a year-on-year decrease of 19.7%, and the net profit not attributable to the parent was 50 million yuan, a year-on-year decrease of 21.8%; In the fourth quarter, the revenue was 385 million yuan, an increase of 12.6% year-on-year and 22.3% month on month; The net profit attributable to the parent company was 16 million yuan, a year-on-year decrease of 53.6% and a month on month increase of 19.6%; Net profit deducted from non parent company was 12 million yuan, down 6.9% month on month. The decline in profit in 2021 is expected to be mainly due to the comprehensive impact of rising raw material prices, rising freight costs, increased R & D investment and other factors. In 2021, the company plans to pay a dividend of 0.12 yuan per share to shareholders.
The annual gross profit margin was under short-term pressure due to the rise of costs, and the expense rate increased due to the increase of R & D investment. In the fourth quarter of 2021, the gross profit margin was 28.8%, basically unchanged year-on-year, with a month on month increase of 3.4 percentage points; The annual gross profit margin was 26.7%, a year-on-year decrease of 2.0 percentage points. The decline in the annual gross profit margin is expected to be mainly due to the rise in the price of raw materials and freight. During the whole year of 2021, the expense rate increased by 0.6 percentage points year-on-year, of which the management expense rate decreased by 0.3 percentage points year-on-year, and the R & D expense rate increased by 1.1 percentage points year-on-year, mainly due to the expansion of R & D team and the increase of new project development. The net cash flow from operating activities in 2021 was – 22 million yuan, a year-on-year decrease of 122.7%, mainly due to the increase in goods preparation, the year-on-year increase in cash paid to employees, and the increase in R & D investment.
The speaker business has achieved a simultaneous increase in volume and price, expanded new products and increased the value of single cars. The company has deeply cultivated vehicle speaker products, formed a stable cooperative relationship with Chinese foreign car enterprises in the growth period, and has become the speaker supplier with the first market share in China. According to the company’s announcement, in 2021, the company’s on-board speakers accounted for 12.9% of the global passenger car and light commercial vehicle market and 19.8% of the Chinese market. The company closely followed the trend of consumption upgrading and automobile intellectualization, and continued to upgrade and iterate the speaker system. The number and unit price of car speakers increased, driving the company’s car speaker business revenue to increase by 12.9% year-on-year. On the basis of speakers, the company is committed to expanding the field of new products and developed new products such as digital power amplifier and AVAs. In 2021, the revenue of power amplifier business increased by 109.6% year-on-year, and the revenue of AVAs business increased by 113.8% year-on-year. The new products are expected to further improve the value of the company’s single vehicle.
The development of new energy customers was smooth, and the capacity expansion and intelligent manufacturing continued to advance. In 2021, it won the fixed-point of new energy vehicle enterprises such as Tesla, Byd Company Limited(002594) , Weilai, ideal, Zero run, Weima, Huawei Jinkang and so on. The company continues to carry out capacity expansion and intelligent manufacturing, the construction of SMT line and general assembly line for Rusheng electronics, the construction of speaker and other production lines and the transformation of automatic production lines in the Czech Republic and Mexico. The construction of new production lines and automatic transformation are expected to improve the company’s capacity and production efficiency, which will play a positive role in improving the company’s performance.
After adjusting the income and gross profit margin, it is predicted that the company’s EPS from 2022 to 2024 will be 0.98, 1.39 and 1.95 yuan respectively (0.99 and 1.45 yuan in the original 22-23 years), which can be 52 times the average PE valuation of the company in 22 years, and the corresponding target price is 50.96 yuan, maintaining the buy rating.
Risk tips
The supporting volume of vehicle speaker business is lower than expected, the vehicle power amplifier business and AVAs business are lower than expected, the market space of acoustic industry and the supply of automobile chips.
