\u3000\u3000 Bestechnic (Shanghai) Co.Ltd(688608) (688608)
Event: the company released the performance forecast for 2021. It is estimated that the net profit attributable to the parent company will reach 410 million yuan in 2021, with a year-on-year increase of 106.7%; The non net profit deducted was 300 million yuan, a year-on-year increase of 72.3%.
The company's annual performance increased rapidly and its profitability was further improved. The company's performance achieved high growth in 2021, mainly due to: 1) due to the rapid growth of the brand TWS headset market and the rapid iteration of the company's new products, the company's operating revenue continued to grow; 2) In terms of smart home, the company's wifisoc chip continues to introduce new customers, and the products continue to be in large quantities; 3) The company has mass produced and listed the first generation of smart watch chips, the market development is smooth, and the product sales are gradually increasing; 4) During the reporting period, the financial products purchased by the company with idle funds contributed considerable investment income to the company.
Actively promote product renewal and upgrading, and broaden the downstream application boundary of products. The company's new generation of WiFi / Bluetooth dual-mode SOC chip for the aiot market has completed engineering verification. At present, the product has been applied to smart speaker products of Alibaba, Huawei and Xiaomi. It will also be widely used in smart appliances and other fields as an intelligent voice module. The company expands the product layout boundary around aiot and extends to a new field of intelligent wearable products - actively developing SOC chips for smart watches and smart glasses. At the same time, the company has developed a multi-layer graphics hardware accelerator, which can not only ensure the smooth display of graphics, but also optimize the power consumption through dynamic switching, block processing and other technologies.
The mass production and listing of the first generation of smart watch chips has opened a new growth pole of the company's performance. During the reporting period, the company's first generation smart watch chip was mass produced and listed. The chip integrates high-performance CPU, 2.5dgpu, BT / ble dual-mode Bluetooth and always on voice wake-up processing unit, and has been applied to smart watches of three brands: Xiaomi, Huawei and vivo. The SOC scheme of the company's second-generation smart watch is currently under planning and is expected to be launched in 2022. The new products of the second-generation smart watch will be further upgraded and more brand customers are expected to be introduced. The new smart watch is the company's new product line. Due to the higher cost of smart watch SOC, its unit price is much higher than that of headset SOC. When its volume is large, it is expected to contribute important performance increment to the company.
Profit forecast and investment suggestions. We lowered the performance expectation of the company in 2021. It is estimated that the EPS of the company will be 3.41 yuan, 5.28 yuan and 7.71 yuan respectively from 2021 to 2023. The compound growth rate of net profit attributable to the parent company is expected to reach more than 65% in the next three years. Considering the leading position of the company in the field of intelligent audio SOC, the Android intelligent audio terminal market will enter a period of rapid development in the next few years, and the company's market share will remain in the lead and is expected to be further improved. The company will expand smoothly in the field of intelligent speakers and wearable devices, is expected to usher in a new growth curve and maintain the "buy" rating.
Risk warning: industry competition intensifies; The penetration rate of TWS earphone does not meet the expectation; The company's technology research and development did not meet expectations.
