From the "fruit chain gangster" to the "VR pioneer", the growth story of Goertek still makes sense?

On October 26, Goertek (002241. SZ) has successively announced its third quarter report for 2021 and its 2021 annual results forecast. Judging from the disclosed data, the company's revenue and net profit have performed well in the above reporting period, continuing the growth trend in recent years.

However, in the years of continuous growth in performance, Goertek shares have actually undergone many changes, in addition to the label of "fruit chain", but also gradually added "VR/AR", "metaverse" and so on.

The performance of the "fruit chain boss" continued to grow

Goertek co., Ltd. was established in June 2001 and 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, which is regarded as a "fruit chain big man" who is rooted in Miao Hong.

At the same time, the company has also laid out in other tracks, including emerging smart hardware businesses represented by VR, smart wearable devices, etc.

At present, the main business of Goertek co., Ltd. is divided into three major business segments: precision components business, intelligent acoustic machine business and intelligent hardware business.

Among them, the main products of the precision components business include micro speakers /receivers, VR optics and modules, AR optics, AR optical machine modules, precision structural parts, etc., which are widely used in smart phones, smart wireless headsets, VR virtual reality/AR augmented reality, smart wearable products; smart acoustic machine business products include smart wireless headsets, wired/wireless headsets, smart speakers, etc.; the main products of the intelligent hardware business include VR virtual reality/AR augmented reality products. Smart wearable products, smart home video game consoles and accessories products, smart home products, etc.

From the listing to 2020, the performance of Goertek shares has only declined in a few years, basically in a state of continuous growth, which has a relatively large relationship with the development of Apple's industrial chain.

The latest disclosure of the third quarter of 2021 performance report shows that Goertek achieved revenue of 52.789 billion yuan in the first three quarters of this year, an increase of 52% year-on-year; achieved a net profit attributable to the mother of 3.333 billion yuan, an increase of 65.28% year-on-year.

Among them, in the third quarter, the revenue was 22.5 billion yuan, an increase of 14.76% year-on-year, an increase of 38.4% month-on-month, and the net profit attributable to the mother was 1.601 billion yuan, an increase of 29.61% year-on-year and 109.3% month-on-month.

At the same time as announcing the third quarter performance report, the company also disclosed the performance forecast for the full year of 2021. According to the data, Goertek is expected to achieve a net profit attributable to the mother of 4.244 billion yuan to 4.528 billion yuan for the whole year, an increase of 49% to 59% year-on-year.

Corresponding to the fourth quarter, the net profit attributable to the mother was 911 million yuan to 1.2 billion yuan, an increase of 10% to 44% year-on-year.

Goertek said in the performance forecast that the growth in performance compared with the same period last year was mainly due to the increase in sales revenue and profitability of the company's VR virtual reality, smart wearable and smart wireless headsets.

While the performance continued to grow, the company's stock price (former reinstatement) also performed well, and has risen nearly 63 times since its listing.

The soaring stock price also helped Jiang Bin, the actual controller of Goertek, and his family once became the richest man in Shandong.

Growth engine switching occurs

It is worth noting that behind the performance growth of Goertek in the past two years, what is reflected is somewhat different from before.

In the early days of the company's listing, its performance was particularly dependent on apple's industrial chain, but in the past two years, the smart hardware business represented by VR virtual reality/AR augmented reality products and smart wearable products has grown extremely rapidly, and the proportion of revenue and profit contributed in total revenue and total profit has gradually increased.

The data shows that in the first half of 2020, the smart hardware business contributed 23.16% of revenue and 18.04% of profits; in the whole year of 2020, the smart hardware business contributed 30.57% of revenue and 23.85% of profits; in the first half of 2021, the smart hardware business contributed 37.01% of revenue and 36.22% of profits.

From the perspective of changing trends, the proportion of profit contributed by the intelligent hardware business is obviously increasing, and it is gradually becoming the most important engine driving the sustained growth of Goertek's performance.

Correspondingly, the revenue and profit realized by the remaining two business segments have continued to grow, but the proportion of contributions has decreased.

In goertek's intelligent hardware business, 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.

According to IDC's forecast, VR headsets are likely to grow by 46.2% in 2021, and VR headset shipments will reach about 7.31 million units in 2021, with more than 20 million units. In addition, vr headset shipments will grow at a compound annual growth rate of 48% from 2020 to 2024.

In the future, with the further development of the VR/AR subdivision industry, this part of the business is expected to become one of the most important growth points of Goertek's performance, providing a stronger impetus for the company's performance to continue to grow.

In the era of the meta-universe, Goertek shares reigned?

It is worth mentioning that VR/AR also allows Goertek to bind the concept of the "meta-universe" of this year's fire.

The "metacosm" is often described as a virtual world parallel to real life, and vr/AR/MR technology can be used to enter the "metacosm".

Since the beginning of this year, the stock price trend of Apple concept stocks has been mostly bad, and Luxun Precision (002475. SZ) fell nearly 32% in 2021, Lens Technology fell 35% this year, and Goertek rose 13.26% in 2021, during which there was even a period of doubling.

It should be known that Goertek was once known as "Xiaolixun", and both companies are oem Apple Air Pods, which are also deeply dependent on Apple.

Looking closely at the reasons for the different performance of the stock prices of the two "fruit chain bigwigs", many people believe that it is mainly because Goertek has a "meta-universe" concept protector, and the company is also the core target of the VR/AR field, which is more widely optimistic.

Therefore, many investors believe that meta-universe will play a very big role in the performance of Goertek shares, and the company will become king in the meta-universe era.

However, the metaverse is still only a concept, and the relevant hardware experience and application scenarios are still far from the ideal state.

From the current situation, it is more realistic to pay attention to the company's current business situation, even if the impact of the metaverse is not considered, the VR/AR field is still promising. It is reported that Oculus's new Quest2 VR headset was launched only a few months ago, and sales exceeded the sum of previous products.

Author: Yun Zhi Fengqi

This article originated from Caihua Network