On Thursday (December 14), a GEM listed company “Chenyi Smart” asked for a quote.
Chenyi Smart (301578.SZ): The company's main products are smart remote controls and other smart products. Over the years, the company has established good cooperation with well-known domestic and foreign home appliance brands such as Huawei, Xiaomi, Jimi, Changhong, Skyworth, Jiumu, China Telecom, Hisense, TCL, VESTEL, Panasonic, UEIC and other customers. The company achieved operating income of 454 million yuan/622 million yuan/745 million yuan in 2020-2022, YOY in that order was 29.19%/37.07%/19.72%, a compound annual growth rate of 28.46% in three-year operating income; realized net profit of 61 million yuan/67 million yuan/89 million yuan; YOY was 182.50%/10.44%/32.51% in that order, and the compound annual growth rate of net profit over three years was 60.49%. In the latest reporting period, 2023Q1-3 achieved operating income of 489 million yuan, a year-on-year decrease of 8.24%, and net profit of 65 million yuan, an increase of 8.27% over the previous year. The company expects net profit of 88 million yuan to 93 million yuan in 2023, with a year-on-year change of -0.73% to 4.91%.
Investment highlights: 1. Downstream customers actively deploy smart TV players such as Huawei and Xiaomi, and are expected to benefit from the development of smart homes driven by the Internet of Things. Since 2017, the company has established cooperation with Huawei and Xiaomi, which mainly provides Bluetooth remote controls to Huawei and infrared and Bluetooth remote controls to the Xiaomi Group. During the period 2020-2022, Huawei continued to rank among the company's top five customers, and the Xiaomi Group also entered the top five customers in 2022. Compared to traditional companies in the color television industry, such as Hisense, Konka, TCL, etc., newcomers such as Xiaomi and Huawei have positioned home TVs more as smart terminals rather than simple televisions, gaining a certain market share. According to data from Aowei Cloud Network, up to the first half of 2021, Xiaomi TV remained number one in mainland China for ten consecutive quarters, and remained in the top five in global TV shipments. In the future, the company will further expand ecological intelligent products using smart screens as application scenarios. With the continuous development of the Internet of Things, it is expected to benefit from the development of these outstanding enterprises in the field of smart home hardware systems and ecosystems. 2. The company actively explores new business growth points, and has developed and launched a variety of smart products, including Tmall Genie, cloud game controllers, music controllers, microphones, etc. In addition to smart remote controls for home appliances, the company is actively developing smart products in another major business segment. The products include Bluetooth to IR universal repeaters (Tmall Genie), cameras, game controllers, etc. In addition, in 2021, two new products such as face recognition machines and microphones were added. In addition, UWB and air mouse positioning projects are under research. 2020-2023H1, the revenue of the company's smart products continued to rise, to RMB 29.08879 million, RMB 36.1943 million, RMB 114.2872 million and RMB 44.702 million, respectively.
Comparison of listed companies in the same industry: Vida Intelligence, Defu Electronics, and Chaoran Technology were selected as comparable listed companies of Chenyi Intelligence; however, because of the differences between these companies and Chenyi Intelligence's listed sector, we tend to think that comparable PE is less referential. Judging from the comparable companies mentioned above, the industry average revenue (TTM) is 142 million yuan, the comparable PE-TTM (excluding negative values/arithmetic average) is 12.16X, and the gross sales margin is 23.59%; in comparison, the company's revenue scale and gross sales margin are above the industry average.
Risk warning: There is still a possibility that companies that have begun the inquiry process will not be able to go public due to special reasons; company content is mainly based on the content of prospectus and other public information; there is a risk that the selection of listed companies in the same industry is not accurate enough; there may be interpretation deviations in the selection of content data. The specific risks of listed companies are shown in the text.