[investment points]
The first three quarters of 2022 achieved substantial growth, and profitability continued to improve. According to the company's third quarterly report of 2022, the company achieved 1.791 billion yuan in revenue in the first three quarters of 2022, down 14.61 percent from the same period last year, and realized a net profit of 155 million yuan, an increase of 91.01 percent, and a deduction of 146 million yuan in non-net profit, an increase of 208.69 percent over the same period last year. The corresponding company achieved revenue of 700 million yuan in the third quarter of 2022, down 14.84 percent from the same period last year, an increase of 9.71 percent over the previous year, and a net profit of 80.88 million yuan in a single quarter, an increase of 85.41 percent over the same period last year, an increase of 48.40 percent, and a deduction of 82.85 million yuan for non-net profit in a single quarter, an increase of 116.06 percent over the same period last year and 57.78 percent over the previous quarter.
The company is mainly engaged in the research, development, production and sales of intelligent hardware such as intelligent electro-acoustic products and smart wearable products, and maintains a close, stable and long-term strategic cooperative relationship with the world's top brands.
The advantage of intelligent manufacturing appears, and the profitability continues to improve. In the first three quarters of 2022, the company achieved a gross profit margin of 15.86%, an increase of 5.75pct over the same period last year, a net profit of 8.65%, and a year-on-year increase of 4.79pct. In the third quarter, the company's gross profit margin was 16.35%, an increase of 4.41pct over the same period last year, a net profit rate of 11.55%, and an increase of 6.25pct over the same period last year. At present, the company has formed a production system with scientific management, advanced technology, large-scale and flexible operation, has created a trinity base layout of "Dongguan-Vietnam-Jiangxi", and made full use of the comprehensive cost advantages of the three places. reduce operating costs, improve profitability, can respond to customer needs more quickly. In terms of intelligent manufacturing, the company has introduced ERP, MES, WMS, PLM and other information systems and continuously improved and upgraded during the reporting period, which significantly enhanced the flexible intelligent manufacturing capacity and highlighted manufacturing advantages.
Deeply ploughing the field of intelligent electroacoustics and actively expanding the product matrix. The company is a leading manufacturer of electroacoustic products in China, establishing long-term and stable strategic cooperation with global leading customers such as Harman and Skullcandy, and providing customers with diversified product solutions such as ODM and OEM. In addition to the existing products, the company pays close attention to the development opportunities of the consumer electronics industry, adding new products such as bone conduction headphones, smartwatches, smart glasses and so on, further enriching the product matrix. With the continuous development of 5G and Internet of things technology, smart wearable devices are expected to continue to be popularized. according to Gartner, the global smartwatch market grew by 13.32% year-on-year to $26.745 billion in 2020, is expected to reach $35.814 billion in 2022, and CAGR reaches 33.91%. According to FortuneBusinessInsights, the market space for smart glasses has reached $4.651 billion in 2019, $15.788 billion in 2027, and 17.2% of CAGR. Compared with in-ear headphones, bone-conducting headphones can effectively solve the problems of ear pain and ear leakage, which is one of the development directions of intelligent headphones in the future. With the maturity of bone conduction technology, the market of bone conduction headphones is expected to maintain rapid growth. According to QY research, the global bone conduction headphones will maintain a growth rate of 23.5% from 2022 to 2028, and the market size is expected to reach 3 billion US dollars by 2028.
In-depth layout of the upper and lower reaches of the industrial chain, create integration advantages, and promote long-term business development. In the field of bone conduction headphones, the company has invested in Suzhou Suoji Electronic Technology Co., Ltd., a developer of its core device, oscillator motor, etc. In terms of smart glasses, the company invests in Riowell (Shanghai) Intelligent Technology Co., Ltd., and cooperates with it to develop AR equipment and other products, which are intended to be applied to industrial-grade customers such as Honeywell, Siemens and Baosteel. In addition, the company or wholly-owned subsidiaries have also invested in Zhongchuang Guangtong Technology Co., Ltd., Jiangxi Ganfeng Lithium Technology Co., Ltd., Chongqing Wuqi Microelectronics Co., Ltd., through the in-depth layout of the upstream and downstream of the industrial chain, further expand the company's development-related industrial resources, give full play to the advantages of upstream and downstream parties, achieve resource integration, and promote the long-term development of the company's diversified product business.
Fund-raising, investment and expansion to grasp the opportunities for the development of new technologies and new products. According to the disclosure of the company, the company plans to raise no more than 1.004 billion yuan by issuing convertible bonds to unspecified objects. for the annual production of 5 million bone conduction headphones, 9 million smartwatches, 4.5 million smart glasses and supplementary liquidity. For the bone conduction headphone project, the company expects the construction period to be 2 years, the second year to start production, and the production period to reach 5 years, with an estimated annual sales income of 675 million yuan. Smartwatch project, the company expects the project construction period of 2 years, the fifth year of production, is expected to achieve annual sales revenue of 963 million yuan. For the smart glasses project, the total investment is expected to be 276 million yuan, the fund to be raised is 250 million yuan, the construction period is expected to be 2 years, the year of reaching production is the fifth year, and the annual sales income is expected to be 743 million yuan after reaching full production.
[investment advice]
The company is a leading supplier of electroacoustic solutions in China, and has established and maintained a long-term strategic partnership with the world's top brands. While continuously improving the advantages of electro-acoustic product research and development and manufacturing, the company actively broadens the product matrix and develops new products such as bone conduction headphones, smartwatches, VR/AR smart glasses, and has quickly created strategic resource integration advantages through in-depth layout upstream and downstream. It is estimated that the company's revenue from 2022 to 2024 will be 22.80 Universe 3240Universe 4225 / million, the net profit from its parent will be 1.65 Universe 2.93 Plus 362 million, the EPS will be 0.49 Universe 0.86 Plus 1.07 / share, and the previous PE will be 3419 Universe 16 / times, giving it an "overweight" rating.
[risk Tip]
Downstream market demand is lower than expected
The progress of new product promotion is not as expected.
The progress of production expansion is not as expected.
Sharp fluctuations in the exchange rate
