Rambler's 2021H1 achieved revenue of 1,128 million yuan, and the headphone business developed rapidly. 1) Judging from the revenue side performance, Rambler's 2021H1 revenue was +51% year on year, and continued to grow rapidly. It mainly benefited from the company's deep involvement in the Android TWS headphone market and continued to launch headphone products that meet market needs. At the same time, the company used its technical advantages in the audio field to continuously expand its product line, leading to significant overall revenue development; 2) Judging from Gimu's net profit, 2021H1 achieved Gumo's net profit of 207 million. Compared to the previous year, the gross margin maintained steady development and cost control results were remarkable; 3) Judging from the cost side, the company maintained steady development in 2021. H1 sales expenses It reached 85 million yuan, with a sales expense ratio of 7.54%, which is still the bulk of the company's expenses. Rambler paid attention to the sales network layout and supported the launch of the new products fitpods and lollipods pro in the first half of the year. Overall, the cost rate for the period fell from 17.74% in 2019H1 to 15.87% in 2021H1, and expenses were further controlled.
Rambler's monthly growth is better than the market, and I'm optimistic about the performance of TWS headphone products. 1) From January to July 2021, the cumulative sales of TWS earphones on the Alibaba platform were -3.88% compared to the same period, and Rambler +78.11% compared to the same period, outperforming the market. The main reason was that Rambler continued to explore TWS headphone products, from LolliPods MIC noise reduction to LolliPods Pro active noise reduction, opening up cost advantages, improving product structure, and increasing gross margin. We expect TWS headsets to account for more than 70% of the company's revenue in the future. 2) Android branding logic has been further verified. From January to July 2021, the cumulative sales shares of the Alibaba platforms Huawei, Rambler, and Xiaomi were 9.0%, 7.4%, and 3.2% respectively. 3) Rambler made a further breakthrough in the high-end market. Its sales share ranking in the high-end market rose to third. At the same time, it ranked first in the mid-range market, reaching 12.2%, far higher than the second 5.1%.
Investment advice: We raised the company's revenue forecast for 21-23 to 2,816, 40.03, and 5.395 billion yuan respectively. The net profit of the mother returned to the mother was 447, 675, and 889 million yuan respectively, and the corresponding EPS was 0.50, 0.76, and 1.00 yuan, maintaining the purchase rating.
Risk warning: TWS chip supply falls short of expectations; similar competitors have entered; downstream customers have changed.