Events:
The company publishes its semi-annual report for 2022. In the first half of 2022, the company achieved operating income of 1.091 billion yuan, a decrease of 14.46% over the same period last year, a net profit of 74 million yuan, an increase of 97.54% over the same period last year, and a net profit of 64 million yuan after deduction, an increase of 599.65% over the same period last year.
Comments:
The company's first-half results were in line with expectations, with net profit at the upper end of the forecast range. The company had previously estimated that the net profit of returning home in the first half of 2022 was 60 million yuan to 75 million yuan, an increase of 60% to 100% over the same period last year, and the actual net profit was 73.9713 million yuan, an increase of 97.54% over the same period last year. From a quarterly point of view, the company's 22Q2 achieved revenue of 638 million yuan, down 14.71% from the same period last year, and increased by 41.18% month-on-month. The net profit / net profit after deducting non-return was 5449.92 million yuan, respectively, up 3.20%, 82.95%, 82.95%, 8.54%, respectively, and increased by 8.36%, 1.48% respectively. Month-on-month increase of 6.12 percentile 4.23 percentage points, net profit after deduction in the second quarter increased significantly, profitability improved.
The optimization of product structure led to the improvement of gross profit, and the profit in the first half of the year increased compared with the same period last year. During the reporting period, the company's main business was the R & D, production and sales of smart hardware such as smart electroacoustic products and smart wearable products, including TWS headphones, bone conduction headphones and smart speakers; smart wearable products include smartwatches, smart glasses, etc., including audio glasses, bone conduction glasses and AR glasses.
In terms of revenue share, in the first half of 2022, headphone products accounted for 77.13%, speaker products accounted for 17.88%, smart wear products accounted for 4.23%, smart wear products accounted for an increase, high gross profit products such as bone conduction and AR glasses gradually increased, and the product structure was optimized. The company adopts the base layout of "Dongguan-Vietnam-Jiangxi" and actively promotes the flexible and intelligent production strategy. during the reporting period, the Jiangxi production base began to enter the stage of mass production, and the unit cost of procurement and amortization decreased. The exchange net income brought about by the devaluation of RMB during the reporting period led to a substantial increase in the company's net profit during the reporting period compared with the same period last year.
Work closely with downstream customers to pay attention to the volume of new products such as bone conduction headphones and AR glasses. The company's main business is clear, and since its inception, it has continuously expanded its business layout around intelligent acoustics and wearable products, and maintained a close, stable and long-term strategic cooperative relationship with the world's well-known electroacoustic / smart wearable brands, smart terminal brands and Internet brands. During the reporting period, the company continued to expand the range of consumer electronics products around the main business of existing electroacoustic products, and new products such as bone conduction headphones, smartwatches and AR glasses were shipped one after another, enhancing the core competitiveness. In terms of bone conduction headphones, the company has a number of patents in the field of bone conduction, and the bone conduction headphones developed and produced for brand customer Mojue have been sold in all major e-commerce stations; as for AR glasses, the AR glasses developed by the company in cooperation with Riowell have been shipped in 22Q2, which is mainly used in industrial fields such as automobile manufacturing, inspection and remote maintenance. In terms of smartwatches, smartwatches made by the company are mass-produced in 21Q4, and smartwatches with blood pressure measurement functions are mass-produced in 22Q2, and can be sold in the United States through the general control regulations of FDA. With the gradual expansion of new products such as bone conduction headphones, smartwatches and smart glasses, it is expected to develop a second growth curve.
Profit forecast and investment advice. The company is the leading TWS ODM company in Android camp in China, working closely with downstream customers, expanding the category of consumer electronics around the field of intelligent acoustics & wearability, and actively laying out new products such as bone conduction, smart phones and AR glasses, which is expected to open up the second growth curve. It is estimated that the company's EPS from 2022 to 2023 will be 0.51 yuan and 0.86 yuan respectively, corresponding to 37 times and 21 times of PE respectively, and will be given a "recommended" rating for the first time.
Risk tips: capacity climbing is not as expected, industry competition intensifies, and so on.