Like Companies such as Luxshare Precision and Lens Technology, Goertek (002241. SZ) has the most distinctive label is the "Apple Concept."
And with the "meta-universe" fire, the company has another label on it.
Not only that, from the performance data of recent years, VR products related to the "meta-universe concept" have gradually replaced Air Pods as the main force driving the performance of Goertek shares.
The performance of 21 years reached a new high, and the performance of the first quarter of 22 years exceeded expectations
Goertek was listed on the Shenzhen Stock Exchange in May 2008. The company cut into the Apple industry chain as early as 2010, supplying apple with acoustic components, wired headphones and so on. Since then, the company has gradually become the second largest OEM of Apple's Air Pods and is one of the fruit chain leaders in the A-share market. At the same time, Goertek has also laid out layouts in other fields, including emerging smart hardware businesses represented by VR and smart wearable devices.
At present, the main business of Goertek co., Ltd. is divided into three major sectors: precision components business, intelligent acoustic machine business and intelligent hardware business.
On March 29, the company released its 2021 performance report. According to the data, during the period, Goertek achieved revenue of 78.221 billion yuan, an increase of 35.47% year-on-year; net profit attributable to the mother of 4.275 billion yuan, an increase of 50.09% year-on-year; and non-net profit of 3.83 billion yuan, an increase of 38.9% year-on-year.
Among them, in the fourth quarter of 2021, the company achieved revenue of 25.432 billion yuan, an increase of 10.52% year-on-year; in the fourth quarter, it achieved a net profit attributable to the mother of 942 million yuan, an increase of 13.22% year-on-year.
Compared with the performance of previous years, it can be seen that after the decline in performance in 2018, Goertek shares then opened a continuous growth model, the performance was very eye-catching, and the revenue and net profit attributable to the mother in 2021 both hit a new high again.
Regarding the growth of performance in 2021, Goertek said that it benefited from the continuous growth of demand for smart hardware products such as VR virtual reality, TWS smart wireless headsets, smart wearables, smart home electronic game consoles and accessories and related precision components.
On the same day, Goertek also released the first quarter of 2022 performance forecast, is expected to achieve a net profit attributable to the mother of 869-966 million yuan during the period, down 0-10% year-on-year; to achieve a non-net profit of 842-902 million yuan, an increase of 40-50% year-on-year.
It is reported that in the first quarter of 2022, the company's revenue growth in VR and game console products led to an increase in overall profitability, and due to the impact of the fair value of the company's Kopin Corporation equity investment, non-recurring profit and loss fell by 300-340 million yuan year-on-year during the period, making the net profit of non-attributable to the mother during the period achieve a substantial year-on-year increase.
At present, a number of brokerage institutions have expressed optimism about the above-mentioned first-quarter report card, and its China Sheng Securities, CITIC Securities and CICC all believe that the performance of Goertek in the first quarter exceeded expectations.
The growth momentum is different when the engine change is carried out
It is worth noting that although the performance of Goertek has been growing rapidly since 2019, it is also a growth, but there is a different growth momentum behind it.
It is reported that the main products of Goertek's precision components business include micro speakers /receivers, VR optics and modules, AR optics, AR optical modules, precision structural parts, etc., and the products are widely used in smart phones, smart wireless headphones, VR virtual reality/AR augmented reality, smart wearable products; the products of the intelligent acoustic whole machine business include smart wireless headphones, wired/wireless headphones, smart speakers, etc.; the main products of the smart hardware business include VR virtual reality/AR augmented reality products 3. Smart wearable products, smart home video game consoles and accessories products, smart home products, etc.
According to the following figure, it is not difficult to find that the profit proportion of the intelligent acoustic machine business has suffered a sharp decline, from 42.84% in 2020 to 28.32% in 2021; the proportion of revenue of the precision components business has also declined year after year, and the proportion of profit has also fallen to 28.94%.
At the same time, the proportion of revenue and profit of the intelligent hardware business continues to grow, and in 2021, it will surpass the intelligent acoustic machine business and become the most important business segment.
Of course, the change in business structure has actually led to the decline in the overall gross profit margin of Goertek in 2021, mainly because the gross profit margin of the precision components business is much higher than that of the other two businesses.
The reason why the business structure in 2021 will have such a change is because the year-on-year growth rate of the intelligent hardware business increased by 86% during the period, the year-on-year growth rate of the intelligent acoustic machine business was only 14%, and the year-on-year growth rate of the precision components business was only 13%.
It should be known that in the intelligent hardware business of Goertek, VR/AR-related business occupies an important position.
It is reported that the company began to get involved in the VR field as early as 2012, after years of accumulation, has mastered the core technical capabilities of system integration, industrial design, sensors, optical design, EE design, mass production and other core technical capabilities required for VR/AR production, and can provide one-stop ODM/JDM mass production services, and is the core supplier of global VR/AR products.
At present, the company has held first-line customer resources such as Sony, Oculus, and Huawei.
In recent years, advanced communication technology, artificial intelligence technology, intelligent interaction technology, sensor technology, advanced software algorithms and other technologies represented by 5G have been further integrated with emerging intelligent hardware products, creating a large number of new application scenarios and product requirements, and emerging intelligent hardware products represented by virtual/augmented reality and smart wearables have grown rapidly in recent years.
Coupled with the 2021 "meta-universe" explosion, it has also objectively boosted the demand for VR/AR equipment.
According to the statistics of IDC, a well-known consulting organization, in 2021, the global shipment of VR virtual reality products was about 9.36 million units, an increase of about 68.6% year-on-year, and the global shipment of AR augmented reality products was about 330,000 units, an increase of about 13.8% year-on-year.
What is the outlook for Goertek?
At present, most of the technology companies at home and abroad are betting on the "meta-universe" field, which is expected to greatly drive the demand for VR/AR-related equipment with further development.
IDC has previously predicted that VR headset shipments will grow at a compound annual growth rate of 48% in 2020-2024.
This also means that Goertek's VR/AR-related business is expected to continue to grow rapidly, becoming one of the most important growth points in Goertek's performance, providing a stronger impetus for the company's performance to continue to grow.
However, in the company's previous core business Apple industry chain related products, some situations are worth paying attention to.
Recently, it has been reported that Apple has cut orders for Air Pods headphones, reducing the annual production of this year by more than 10 million sets, due to the mild forecast demand.
Under the influence of this news, the share price of Goertek (formerly reinstated) plunged by 7.76% on March 29, and the stock prices of many other Apple concept stocks also fell by different margins.
At present, companies including Goertek and Luxshare Precision have responded to clarify that everything is normal and there is no change.
However, it is reported that TWS headphone shipments increased from 0.09 billion units in 2016 to 310 million units in 2021, with an average annual compound growth rate of 102.97%.
With the sales of products rising year by year, a lot of stock has been accumulated in the market, how much room for subsequent growth? Will the rate of growth slow down? These issues need to be considered.
In addition, under the influence of the epidemic and other factors, the global economic environment in the past two years has not been good, which has also had a negative impact on the demand for consumer electronics.
A few days ago, the third-party market research agency CINNO Research announced the top 5 brands in the monthly sales and sales volume of China's smartphone market in February this year.
Statistics show that in February, the sales of smartphones in the Chinese market were about 23.48 million units, down 20.5% year-on-year, down 24% month-on-month, and contracted year-on-year.
From the perspective of brands, OPPO, Honor, Apple, Vivo, and Xiaomi ranked in the top five in terms of sales, of which Glory is the only brand among the five brands that is growing against the trend.
As part of consumer electronics and a product closely connected to mobile phones, will sales of wireless headphones also decline?
On the whole, the future sales of wireless headphones need to be paid attention to at all times, and the VR/AR related business is expected to continue to be the core driving force for the growth of Goertek's performance.
Author: MingXi