2022年1月17日

VR takes over from TWS, Goer shares strong momentum in the first half of the year with sufficient driving force

It is the earnings season for listed companies, and some procyclical companies have continued to exceed expectations, according to the company’s financial disclosure. Even excluding last year’s low base effect, comparisons with the same period in 2019 still show an excellent level of growth. For example, after the disclosure on March 26 of the leading stock of consumer electronics, Goer shares achieved a new high in the performance of the whole year in 2020, and on April 21, it disclosed that its first-quarter performance exceeded expectations again.

Financial results show that Goer shares in the first quarter of 2021 revenue of 14.028 billion yuan, year-on-year growth of 6.474 billion yuan 116.68%, attributable to the shareholders of the listed company net profit of 966 million yuan, year-on-year growth of 228.41%, earnings per share reached 0.29 yuan, year-on-year growth of 222.22%. At the same time, the company announced the semi-annual performance forecast, is expected to achieve a net profit attributable to the listed company shareholders of 1.56 to 1.80 billion yuan in January to June, an increase of 100%-130% over the previous year. For the substantial growth in performance, the company said it was mainly due to the growth in sales revenue of virtual reality products and smart wireless headset products, the improvement in profitability, and the increase in gains and losses from changes in the fair value of equity investments of Kopin Corporation held by the company.

VR industry chain inflection point approaching many securities institutions sing more

Goer shares in the first quarter showed that the revenue of smart hardware, including VR/AR business, was 4.507 billion yuan, up 267.84 percent year on year. From the past, this has been its intelligent hardware for three consecutive years to maintain rapid growth. In such a long term, VR/AR and other intelligent hardware businesses are expected to significantly increase the contribution to the long-term performance of Goershares.

In fact, behind the high growth of the smart hardware sector of Goer shares is the accelerated development of VR industry. VR products have been in hot demand for the past two years, and many brokerages have said that VR is expected to replace mobile phones as the new driving force for the growth of consumer electronics.

Tech giants are speeding up their entry and AR/VR boom is rapidly improving, China International Capital Corporation (CICC) said in a research report released on April 18. With the support of 5G+AI, AR/VR equipment is optimistic about its growth in the next 5-10 years, and even has the opportunity to become the next generation mobile computing platform in the future.

On the same day, GF Securities also released a research report, saying that VR devices from 2021 to 2022 are similar to Air Pods from 2019 to 2020, which is in the stage of rapid increase in penetration rate. VR industry chain has appeared an obvious inflection point, and the rapid expansion of market size has brought development dividends to the supply chain.

Earlier, Tian Feng International analyst Guo Mingdu “¹ published a research report that Apple may launch the MR head show in the middle of 2022 Apple’s MR/AR product blueprint is predicted to be divided into three stages: the launch of helmet-mounted products in mid-2022; AR glasses could be launched as soon as 2025; Contact lenss-type products will be launched between 2030 and 2040.

The collective institutions are optimistic, indicating the direction of the industry’s development. As the pain points of hardware and content have been solved, the VR industry chain has emerged an obvious inflection point.

The times are progressing and the environment is changing. Consumer electronics has already penetrated into our daily life, and the development of VR industry has become an irresistible trend. In this wave, Goer shares, as the largest ODM manufacturer in the global VR industry, is the most conspicuous one.

In March, Goershares said on the interactive platform that the company currently occupies a relatively significant market share in the global VR/AR industry and has formed a relatively deep long-term cooperative relationship with many well-known customers. The company will continue to actively grasp the opportunities in the development of the global VR/AR industry.

It is understood that Goerl has accumulated in VR/AR field for many years, basically formed the hardware supporting ability of the whole industry chain, and formed stable cooperation with Facebook, Sony and other global AR/VR leading enterprises. CICC estimates that in 2021, Goer AR/VR assembly accounts for nearly 80% of the global share, and it is expected that the company’s profit is expected to reach 20%+ and 30%+ this year and next year.

From the performance of the secondary market of Goer shares, after the disclosure of the company’s annual report to the close of the stock price rose by more than 40% on the 23rd, it can be seen that the growth momentum of its intelligent hardware has exceeded the market expectations, and with the further release of the AR/VR market potential, the future performance is more worth looking forward to.

TWS continues to increase the volume of diversification layout long-term development

Since the volume growth of TWS headset in 2019, the intelligent acoustics business has boosted the performance of Goer shares and become the main revenue source of the company. To this year first quarter, intelligent acoustics machine business is still the company’s main performance support. According to the financial data, in the first quarter of this year, the company’s revenue of intelligent acoustics was 6.097 billion yuan, up 126.76% year on year.

Since TWS is an important business of Goel, TWS’s market is closely related to the company’s performance. By the end of 2020, TWS was expected to have 100 to 120 million units, but earlier this year analysts had lowered shipments to around 90 million units. The market performance is pessimistic, including the share price of a number of related companies, Goel shares suffered a certain correction. However, CICC believes that TWS shipments in 2021 are basically the same as those in 20 years, which is a neutral expectation. There are also views in the market that as an important carrier of voice interaction, TWS headset has gradually become an important entrance of the Internet of Things, and the CAGR of TWS market shipments still remains high.

In addition, at the annual performance presentation on March 30th, Chairman Jiang Bin also said that the company is the core supplier of TWS products for domestic and foreign big customers, and will make every effort to meet the needs of domestic and foreign customers according to market changes. Data from relevant industry research institutions shows that the global TWS smart wireless headset market will continue to grow in 2021, and Goel’s TWS business will also continue to grow significantly compared with last year.

Goer shares rely on acoustics started, its deep acoustics business at the same time also in the expansion of diversified layout. Recently, goer shares launched a new generation of speaker technology solutions, including the miniature speaker SBS, large speaker Cyclone two brands to achieve further technical upgrading, covering smart watch/glasses, mobile phone/tablet computer, AI speakers, HIFI audio, car audio and other product applications.

Intelligent car is one of the hottest topics at present, Goer shares into the automotive field is also an early plan. A few days ago, investors said that Goer shares have become Huawei automotive hardware partners. In addition, Goer shares publicly said that they will work with the world’s well-known high-end HIFI audio brand Dana to carry out joint research and development and deep cooperation around Cyclone, increase the resource investment in the field of car audio, but also accelerate the application of new technology in car audio and HIFI audio system.

Whether it is TWS, VR/AR, or entering the automotive field, Goer shares have carried out diversified long-term layout, and the development space is broad, the certainty is strong, the future development should not be underestimated.

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