Edifier (002351) Performance Express Review Comments: Performance in line with expectations continues to be bullish on TWS brand scarcity

Edifier (002351) Performance Express Review Comments: Performance in line with expectations continues to be bullish on TWS brand scarcity

Event: On February 20, 2020, the company released the 2019 results flash report, resulting in revenue of 12.

4.3 billion, an increase of 41% previously, net profit attributed to mothers1.

2.3 billion, an annual increase of 130%.

  We commented as follows: The performance was in line with expectations, and the sharp increase in Q4 results verified that TWS established an inflection point.

The company released its 2019 performance report on February 20, 2020, with an initial revenue of 12.

4.3 billion, an increase of 41% previously, net profit attributed to mothers1.

2.3 billion, an increase of 130% each year, the overall performance in line with expectations; the corresponding quarter of Q4 single revenue is 4.

5.5 billion, an increase of 65% in the past, an increase of 65% from the third quarter, and the single-quarter performance was 0.

4.3 billion, an increase of 115% from the previous quarter, and a year-on-year increase in profitability. The company ‘s Q4 performance increased significantly and led to a beautiful performance.Products, we expect TWS products to be sustainable and competitive.

We expect the company’s performance in 2020-2021 to grow 144% and 36%, respectively.

In the first year of TWS headset outbreak, scarce brand manufacturers focused on it.

2019 via Bluetooth 5.

0 Technology promotion, and chip vendors such as Qualcomm to support more stable solutions, flagship phones cancelled 3.

The 5mm interface and terminal prices have returned to a reasonable range, and the wireless headset market has shown good jet growth. According to the GFK forecast, the global TWS headset displacement will be about 65 million units in 2018, and the output 厦门夜网 will be about 1/2 billion in 2019-2020, especially the conversion.Airpods pro is constantly stocking more than expected, and the penetration rate of tws headsets has increased beyond expectations.

We believe that in the short term, the brand A products will integrate the guidance and innovation. In the medium and long term, the positioning of Android mobile phones and brand manufacturers in the low-end market will effectively enjoy the dividends of the consumer groups in the mid-end market. From chip-component-ODM,-Terminals, the brand terminal rambler that mainly recommends value-added and elastic bonding, especially the company’s cost-effective features based on sound quality brands will enhance the company’s competitive advantage in the brand field.

Profit forecast: We forecast the company’s operating income from 201天津夜网9 to 2020 will be 12 respectively.

43, 23.

3.3 billion, a year-on-year increase of 41% and 88% respectively, achieving net profit attributable to mothers respectively1.

23, 3.

00 (+ 6%) billion US dollars (Slightly revised performance in 2020 was mainly due to the application for funding of KN95 masks produced by Dongguan Lifa Air Air Purification System Co., Ltd., a subsidiary of the company, and we reduced some asset impairment losses), Which increased by 130% and 144% respectively, corresponding to PE of 103-42 in 2019-2020; considering that the company benefits from the rapid growth of the TWS industry and continues to develop into its sustainability, the competitive advantage and scarcity of independent brands, and the valuation of comparable companies, Maintain “Buy” rating.

Risk Warning: Sales volume is less than expected; market competition risk