Financial reporter Xu Yaowen
On April 24, Goertek (002241. SZ) disclosed its first quarter 2024 report.
In the first quarter of this year, Goertek's profitability continued to be repaired, with outstanding performance, achieving a net profit attributable to the parent company of 380 million yuan, a significant increase of 257.47% year-on-year, and the overall business situation continued to improve. In addition, the company continued to invest in R&D and innovation, and continued to expand its main business, making a lot of progress.
At the same time, Goertek repurchased the company's shares several times in the first quarter of this year to enhance investor confidence. As of March 31, 34,205,700 shares have been repurchased, accounting for 1.00% of the company's current total share capital, and the payment amount is about 597 million yuan, which meets the requirements of the company's repurchase plan.
Whether it is the first quarter results or the continuous repurchase, we can see the firm confidence in the company's long-term value and future development. With the recovery of the industry and the promotion of innovative technologies such as artificial intelligence, the scale of the consumer electronics market is expected to further increase in the future, and Goertek is expected to continue to grow bigger and stronger in the metaverse industry and further consolidate the company's leading position in the market.
Profitability continues to recover
Net profit attributable to the parent company increased by 257.47% year-on-year
In the first quarter of 2024, Goertek achieved operating income of 19.312 billion yuan, a year-on-year decrease of 19.94%, a net profit attributable to the parent company of 380 million yuan, a significant increase of 257.47% year-on-year, and a non-net profit of 275 million yuan, an increase of 1722.92% over the same period of last year.
Regarding the fluctuation of operating income, the relevant person in charge of Goertek said that it is due to the normal decline of individual intelligent hardware projects in the latter part of their product life cycle and the uneven distribution of revenue of some projects between quarters. However, the company's precision components, intelligent acoustic machines and other business segments, as well as VR/MR/AR, smart wearable and other product line businesses in the first quarter progressed smoothly, ensuring the stability of the company's operating income.
In the first quarter of this year, with the increase in cash received from the sale of goods and the provision of labor services during the reporting period, the company's cash inflow from operating activities increased by 8.58% year-on-year to 22.462 billion yuan. The net cash flow from operating activities further increased to 1.535 billion yuan, an increase of 1042.72% over the same period last year.
At the same time, the company's core competitiveness continued to be consolidated, profitability continued to repair, and the gross profit margin was 9.20%, a year-on-year increase of 2.22 percentage points, and the overall business situation continued to improve.
In addition, the company's internal operations improved in an orderly manner, and its financial position was sound and expenses were properly controlled. In the first quarter of this year, the company's expenses during the period were about 1.47 billion yuan, a year-on-year decrease of 13.38%, of which the management expenses decreased by 17.14% year-on-year, and the quality and efficiency of development were steadily improved. At the same time, the company's asset-liability ratio decreased slightly, and the monetary funds steadily increased to 16.894 billion yuan, an increase of 35.90% over the same period last year.
Goertek said that in the next step, the company's management and all employees will continue to go all out to continue to improve the company's operating performance and profitability in the next few quarters.
R&D expenses accounted for 56% of the period expenses
Scientific and technological innovation has achieved remarkable results
In the first quarter of this year, Goertek continued to invest in R&D and innovation, with R&D expenses of about 825 million yuan, accounting for about 56.12% of the expenses during the period, and remained above 50% for a long time. After breaking through the 3 billion yuan mark in 2023, the company's intangible assets further increased in the first quarter of this year, reaching 3.384 billion yuan, a year-on-year increase of 26.53%.
Insisting on R&D investment and scientific and technological innovation has laid a solid foundation for the company to consolidate customer relationships and expand its business. In the first quarter, Goertek and Qualcomm joined hands again to jointly launch a next-generation mixed reality (MR) reference design based on the Snapdragon XR2 Gen 2 platform and the Snapdragon XR2+Gen 2 platform, which integrates Goertek's self-developed new generation of 3P Pancake lens, which can be paired with MicroOLED display to provide the best monocular 4K resolution display effect.
Not only that, Goertek brought a series of innovative technologies and solutions in the fields of sound, light and electricity to the 57th International Consumer Electronics Show (CES), which attracted wide attention from the industry. In April this year, Goertek also obtained the first QTL certification for the wearing comfort of consumer electronic products.
The upgrading of the industrial chain is the key to shaping the core competitiveness of enterprises. Goertek attaches great importance to the extension of the industrial chain, and continues to invest in increasing the layout and actively expanding to the upstream of the industrial chain. On March 27, the second phase of Goertek's science and technology industry project in Laoshan District, Qingdao City started. It is reported that after the completion of the project, tens of thousands of high-end R&D personnel will be gathered to build a headquarters-level R&D center that integrates multiple technologies including virtual reality, acoustics, optics, new materials, artificial intelligence, etc., and create a national and even world-class information technology R&D highland.
The recovery momentum of the consumer electronics market is obvious
Profitability is expected to continue to improve
With the recovery of the consumer electronics industry, the market size is expected to increase further. According to the data, the global consumer electronics market revenue will exceed the $1 trillion mark in 2024. In particular, AR/VR headsets and other products will usher in a recovery, and VR/AR shipments are expected to soar by 44.2% to 9.7 million units in 2024.
With the advent of the AI + Metaverse era, it will accelerate the in-depth integration of future industries such as the Metaverse, automotive electronics, digital health, and humanoid robots with AI, leading a new round of industrial transformation.
Focusing on the "4+4+N" strategy of combining parts and wholes to build an industrial ecosystem, Goertek is driven by intelligent manufacturing + precision manufacturing. With the rebound of shipments of various terminal products and the optimization of product structure, the company's profitability is expected to continue to improve, and it is expected to continue to move forward in the recovery of the consumer electronics market and achieve in-depth development.