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The industry leader in the field of acoustic components.
The company's main products are divided into two categories: acoustic products, data lines and other products. Acoustic products mainly include micro communication wires for headphones, semi-finished products and finished products of digital hands-free headphones. The micro communication wire for headphones is a kind of functional component which is connected with miniature electroacoustic components (sound components) as a conductor to realize electroacoustic signal transmission. it is mainly used in all kinds of intelligent terminal products and other consumer electronic products with mobile communication, audio and video playback, game entertainment and other functions, which can achieve high-quality electroacoustic signal transmission effects such as high fidelity and active noise reduction. At the same time, the company continues to expand new business, layout data transmission wires, connector wires and other communication wire fields. In terms of the proportion of revenue, electro-acoustic products such as acoustic wires and semi-finished products are the main sources of revenue of the company, accounting for about 80% of the total income; data transmission wires and other connection lines account for about 20% of the revenue.
From 2017 to 2018, the company opened up new customers besides Apple Inc in acoustic business such as acoustic wires and semi-finished products, and launched new products such as Bluetooth headsets. The increase in sales of acoustic products, especially the mass production of Bluetooth headphones, has increased sharply over the same period last year, driving the acoustics business to grow by more than 25% over the past two years.
The final customers are Apple Inc iPhone, Samsung, VIVO and other mobile phone brand headphone business. The business income of the company's acoustic wire products was about 400 million yuan in 2017, leading the second 260 million income scale in the industry and in the leading position in the industry. The scale of data line business income is maintained at a level of about 150 million yuan, which is basically stable.
Comply with the development trend of the industry and enter the field of downstream headset products
At present, there are three major trends in the development of headphone industry: digital, wireless and intelligent. Young consumers like to buy more fashionable, technologically innovative and personalized headset products, and consumers put forward higher requirements for the products. Bluetooth headsets promoted by Apple Inc, Huawei, XIAOMI, OPPO and other consumer electronics manufacturers, and Bluetooth sports headphones launched by Sony Group Corp, Beats, JBL, BOSE and other headset manufacturers are very popular in the market.
Acquire Lianyun Acoustics and enter the headphone terminal brand market. Lianyun Acoustics was founded in 2009, the main business is the research and development, production and sales of headphones, including hands-free headphones, Bluetooth headphones, noise reduction headphones and other acoustic products, with "Lyand" independent brand. The company's downstream customers include OPPO, Lenovo, TCL, Motorola and other mobile communication terminal manufacturers.
The annual income of Lianyun Acoustics in 2016 and 2017 was 233 million yuan and 213 million yuan respectively, and the net profit was 13 million yuan and-19 million yuan respectively. As of August 31, 2018, the income was 175 million yuan and the net profit was 2.46 million yuan. The decline in revenue and profit loss in 2017 are mainly due to the impairment loss of customers' accounts receivable. The company acquired Lianyun Acoustics by cash and paid a consideration of 180 million yuan. The main shareholders of Lianyun Acoustics Zhang Zefeng, Guo Ruiqiang, Pan Lixin and Zhang Baocai promised that the net profits belonging to the shareholders of the parent company after deducting non-recurring profits and losses in 2019, 2020 and 2021 should not be less than 17 million yuan, 21.5 million yuan and 24 million yuan, respectively.
The increase of major shareholders' holdings, the implementation of equity incentive scheme and the company's continuous buyback show confidence in future development.
Major shareholders increase their holdings. The major shareholders of the company continued to increase their holdings of the company's shares from February to June 2018, and the increase was completed in August 2018, with a total increase of 1.2 million shares at a price between 21 yuan / share and 28 yuan / share.
The company buys back shares. The company bought back shares for the first time in August 2018. As of March 4, 2019, the company bought back a total of 3.69 million shares, with a total payment of 69.6991 million yuan and an average repurchase price of 18.88 yuan per share.
Equity incentive and restricted stock incentive. In December 2018, the company issued "2018 Stock option and restricted Stock incentive Plan (draft)", which includes two parts: stock option incentive plan and restricted stock incentive plan. Among them, the stock option incentive plan will grant 2 million stock options to the incentive object, and the restricted stock incentive plan will grant 3.57 million restricted shares to the incentive target. On February 22, 2019, the company announced that the stock option and restricted stock incentive plan restricted stock grant had been registered.
The strategic thinking of the company's transformation to the acoustic terminal is clear, and the equity incentive conditions will help to ensure 19 years of high performance growth, giving the "overweight" rating for the first time.
The company is the leader in the field of mobile phone acoustic devices, currently actively laying out the key headset market, and will benefit from the great development of Bluetooth wireless headset market in the future. It is estimated that the 18-20 year-on-year net profit of return to the mother will be RMB 0.65 million, an increase of-24%, a year-on-year increase of-24%, 68%, and 40%, corresponding to an EPS of RMB 0.53, 0.89, and a pre-share price PE of 48pm, 28max, 20X, which is rated as "overweight" for the first time.
