Cinda Securities: give Jimi technology buy rating

2022-02-27 Luo Anyang of Xinda Securities Co., Ltd. conducted research on Jimi technology and issued a research report “Q4 revenue exceeds expectations, profitability continues to improve”, this report gives a buy rating on Jimi Technology, the current stock price is 466.63 yuan.Kimi Technology (688696) Event: Kimi Technology announces 2021 annual results bulletin.In 2021, the company is expected to achieve operating revenue of 4.046 billion yuan, +43.06% year on year;Net profit of 489 million yuan, +81.79%.After translation, the company Q4 is expected to achieve operating revenue of 1.402 billion yuan, +45.80% year-on-year, and realize the mother’s net profit of 188 million yuan, +93.79% year-on-year.Q4 revenue growth beat market expectations.Compared with 32.43% and 44.76% in Q3, the growth rate of revenue and performance of Q4 was significantly improved, and the sequential growth rate of + 13.37PCt and + 49.03PCt was quite bright and exceeded the market expectation.We believe that the rapid growth of Jimi Q4 is mainly due to: 1) the industry boom, the overall market demand is strong: Q4 projector industry Taobao platform sales growth rate of +76%, JINGdong platform growth rate of +127%, the company as the industry leader market position is stable, market share of about 22~24%, the first to share the dividend of market expansion;2) Strengthening brand construction and marketing investment: signing top-rated artist Yi Yangqianxi as the global brand spokesperson and entering the live broadcast room of the head anchor Li Jiaqi, greatly improving brand influence and promoting the high growth of online sales. The GMV of double 11 exceeded 800 million yuan, +90% year-on-year, and the sales volume of Q4 jingdong was +140%.In January, the sales growth rate of Jimi Taobao and JINGdong was +14.5% and +55.4% respectively, keeping pace with the industry growth rate.We believe that the overall penetration rate of intelligent projection is still in the stage of rapid growth. The company has multiple first-mover advantages in products, RESEARCH and development, channels and brands, and will continue to maintain rapid growth in revenue and performance in the future.Product structure and channel layout have been optimized, and profitability has been improved.After translation, the company’s Q4 net profit margin reached the peak of 13.44%, which was 3.33 PCT higher than Q4 in 20 and 2.21 PCT higher than Q3 in 21, thanks to 1) changes in the company’s pricing strategy and product structure:Jimi Jingdong platform in November the average price of projector increased by about 15% year on year, annual high-end new products H3S, RSPro2 sales performance;And 2) The company’s own polishing machine continues to drive the improvement of gross margin, and the company’s profitability further breakthroughs.In terms of channels, the company’s sales on social platforms such as Douyin increased rapidly in 2011, and its overseas popularity increased simultaneously, opening new growth points for the company’s revenue.Launch a new 4K laser TV product, power laser display track.On February 17, Gimme launched a new 4K laser TV, priced at 19,999 yuan. It uses three-color laser technology, which can display a 350-nit highlight hundred-inch screen and directly match the color performance of the OLED TV.Laser TV market is in the stage of rapid expansion, with a compound growth rate of more than 150% in recent 5 years, but the overall volume is still small.Before ji Mi has not updated laser TV products for nearly 3 years, the launch of this new product or indicates that Ji Mi will actively send force laser TV track, seeking the second curve development.Earnings forecast and Investment Rating: We believe that chip shortage, rising raw material costs, shipping pressure and other short-term factors will gradually improve, and we are optimistic about the continuous improvement of industry penetration and the strong alpha advantage of Jimi as an industry leader.We expect annual revenue of 40.46/57.55/7.942 billion yuan for 21-23, with a year-on-year growth rate of 43.1/42.3/38.0%.The net profit of the parent was 4.89/7.16/1.024 billion yuan, with a year-on-year growth rate of 81.8/46.6/43.0%.It maintained its “buy” rating at PE47.74/32.57/22.78.Risk factors: raw material prices continue to rise, competition in intelligent projection industry intensification, chip shortage problem aggravation, the company’s new product launch is not as expected, the company’s channel development is not as expected, etc.The unit in the recent 90 days a total of 23 institutions to give ratings, buy rating 20, overweight rating 3;The average institutional price target over the past 90 days is 673.24.According to the Securities Star valuation analysis tool, Jimi Technology (688696) has a 3.5 star good company rating, a 1.5 star good price rating and a 2.5 star valuation composite rating.(Rating range: 1 ~ 5 stars, maximum 5 stars) The above content is collated by Securities Star according to public information, if you have any questions, please contact us.

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