GoerTek (002241): Revenue and profit margins both drive high performance and high flexibility

GoerTek (002241): Revenue and profit margins both drive high performance and high flexibility

1H19 results are in line with our expectations. Goertech announced 1H19 results: revenue of 135.

80,000 yuan, an increase of 61 in ten years.

1%; net profit attributable to mother 5.

24 ppm, an increase of 17 per year.

7%, located in the 5-25% range of forecasters, in line with our expectations, slightly higher than market expectations.

Corresponds to 78 in 2Q19.

70,000 yuan, an annual increase of 79.

7%, net profit 3.

20,000 yuan, an annual increase of 22.


The company forecasts a net profit of 9.


700 million, 5-25% growth in five years.

Corresponds to 3Q19 single quarter net profit3.

75 to 5.

46 ppm, previously -9% to + 33%, has been a strong growth in the high base of 3Q last year.

After tilting in 2018, we see Gore presenting a significant quarter-to-quarter trend in 2019, most of which comes from the kinetic energy switching of parts and finished products business.

We are at 2.

13 reports “Electro-acoustic devices continue to be under pressure and will eventually be the main driving force” and 6.

27 In the report “Airpods’ profitability improved and the momentum of the finished product business is strong”, it is recommended that investors focus on Gore’s finished product business.

Recently, we have also seen that industries and companies continue to pay fines at 8.

15 For the first time, “One of the biggest beneficiaries of 5G AIoT terminals” was released. Goer is optimistic about the prospects of wireless headsets, smart speakers, wearables, ARVR and other fields. We believe Goer will face “high revenue growth + profit margin recovery in the next few years.””” The performance brought by it is highly flexible. The annualized growth of net profit in 2019-2021 is expected to reach 50%.

Development trends The finished product business is driving growth.

We sort out the company’s growth points this year. The order of revenue contribution is: wireless headphones> wearable> microphone> smart speakers, three of which are finished products.

We estimate that the proportion of the company’s finished product business will recover from 54% in 2018 to 67/74/80% in 2019-2021, with an annualized growth of 56%.

The two most important businesses are: 1) Wireless headsets: Airpods continue to expand and grow, and we expect that Mingal will release 13/24 million units today; 2) ARVR: We expect annualized growth to nearly double in the next two years.

Profitability improved steadily.

Affected by intensified electro-acoustic competition and Airpods climbing, Gore’s net profit margin fell to 3 last year.

A low of 7%, the 南京夜网 profitability of Airpods has improved and the industry is improving. We expect a net profit margin of 3 this year and next.

8% / 4.

3%, and is expected to return to a reasonable level of 5% or more in 2020.

Earnings forecast and forecast Estimated completion of business momentum and profitability improvement, we raised the company 19 / 20eEPS 5% / 16% to 0.


60 dollars.

The current contradiction corresponds to 19 years 33.

6x P / E.

We maintain our Outperform rating, and consider the overall estimate of the sector to move upwards. We raise our target price by 20% to 18.

00 yuan, corresponding to 19e 45.The price-earnings ratio is 9 times, compared with the current 37% upside.

Risks Smartphone implantation was less than expected; ARVR landing was less than expected.