netmarbleblockchain| Guangfeng Technology "gets on the bus", and the performance bottleneck is difficult to break

May 26thNetmarbleblockchainA reporter from the Beijing Business Daily noted that Guangfeng Technology (688007) focused on answering market questions on the investment platform, covering a wide range of contents. some investors asked whether the products could be used in machine vision, while others were concerned about whether the hot film market was good for the company's performance. Of course, the market is most concerned about the application in the automotive field.

Guangfeng Technology, which is famous for its peak rice projector, has also encountered bottlenecks in its performance with the weakness of the consumer electronics market. Although the company seeks to "get on the bus" and "target" a number of car companies, it is not clear when it will turn into considerable profits.

The projector "can't sell".

For a long time, Guangfeng Technology's "Fengmi Laser TV" is well known. However, the revenue of Guangfeng Technology in 2023 and the first quarter of this year fell by about 2.2 billion yuan and 4% respectively.Netmarbleblockchain.45 billion yuan, down 12.9% and 3.04% respectively from the same period last year.

Judging from the production and sales situation, last year, the production and sales of Guangfeng Technology's "optical engine and whole machine" fell 25.32% and 10.67% respectively compared with the same period last year. In terms of profit, the company's return net profit was about 103 million yuan last year, down 13.61% from the same period last year. Although it reached 44.54 million yuan in the first quarter of this year, the deduction of non-net profit was only about 620000 yuan. In the huge gap, the income from financial assets of about 37.91 million yuan helped a lot.

The reason is that the decline in the consumer electronics market and the peak of laser TV fever have dragged down the company's performance in the past. According to IDC, China's projector market shipped 4.736 million units in 2023, down 6.2% from the same period last year, with sales of 14.77 billion yuan, down 25.6% from the same period last year.

Guangfeng Technology also expressed concern about the market environment in 2024. The company said that the consumer electronics industry in which the company's household projection business was located in 2023 was affected by factors such as changes in the macroeconomic cycle and increased competition, resulting in a downturn in the industry's prosperity. The company's household projection-related business revenue and profit contribution declined compared with the same period last year. If the recovery of demand in the consumer electronics industry is slow in 2024, it may still have a negative impact on the household projection business.

For Guangfeng Technology, the decline in household projectors has not only affected income, but also large impairment has engulfed profits. The company's inventory is mainly raw materials and inventory goods. If the laser shows that the products are iterative, the old products can not be sold. Then the inventory impairment will follow.

netmarbleblockchain| Guangfeng Technology "gets on the bus", and the performance bottleneck is difficult to break

In 2023, Guangfeng Technology had an impairment of about 81.24 million yuan in assets, the largest of which was an inventory impairment of about 58.36 million yuan.

Seek to "get on the bus"

The market prospect of home projector is not optimistic in the eyes of industry experts. Liang Zhenpeng, a senior industrial economic observer, told the Beijing Business Daily that the decline in the household projection market is mainly due to the passing of the window period. Almost from 2018, due to mature technology and falling production costs, a large number of manufacturers poured into this field, breaking the situation of projectors monopolized by Japanese brands such as Sony, and allowing more consumers to accept this product, but the growth cannot be sustained after all.

Expert point of view said, it is precisely since 2018, projector products gradually abandon the light bulb light source, instead with LED and laser light source, it is this transformation, so that the hands of laser patent Guangfeng technology in the rising period to eat a dividend, the company's revenue scale in 2018 between 1.3 billion-1.4 billion yuan, but to 2022, revenue scale has exceeded 2.5 billion yuan.

It should be pointed out that the products of Guangfeng Technology also serve the cinema line. In recent years, the increase in the number of laser cinemas has helped the company's performance. Guangfeng Technology mainly rents projection products to cinemas and charges fees according to the length of use. Of course, these products are not sold goods, but as fixed assets. As of the first quarter of this year, the company's fixed assets are about 309 million yuan.

Guangfeng Science and Technology is obviously not willing to be trapped between families and cinemas. In order to cope with the difficulties, the company actively seeks to "get on the bus" and expand the business of on-board optical devices. Its main products are car specification-level screens to meet the needs of users, such as in-car audio-visual entertainment and human-computer interaction.

Although Guangfeng Technology emphasized the development of the vehicle business, the company seemed to be very secretive about the specific revenue share in the 2023 report. Guangfeng Technology only disclosed the "core devices and machine business" and "other products and business" two lines, in the industry classification is only generally said to be the "laser display industry". However, it can be roughly inferred that the core devices and machines are mainly home projectors, as the company has said that revenue fell 12.99% year-on-year last year, mainly due to the weak consumer electronics market for To C business.

From fixed point to landing

Although the company was vague in its 2023 report, investors pressed the question again and again.

Guangfeng Technology said in an interaction with investors: "in December 2023, the company ushered in the first designated model boundary M9 officially landed, and in March 2024 entered the stage of intensive mass production delivery, vehicle optical business entered the revenue contribution period." From the data point of view, in the first quarter of this year, Guangfeng Technology achieved vehicle optical business revenue of 48.0268 million yuan.

In recent months, Xiaomi cars have not only earned enough traffic, but also orders have surged. Some investors have asked whether the company is cooperating with Xiaomi. Guangfeng Technology only said: the company is actively expanding the designated cooperation between domestic and foreign head car companies. For specific business, please refer to the company disclosure announcement.

In addition to asking questions, Guangfeng did expand some customers, but not Xiaomi. Specifically, the company received a fixed-point notice from BAIC in 2023 to supply it with intelligent cockpit display products. In addition, the Smart genie 5 and Red Flag's Golden Sunflower will also be equipped with Guangfeng technology products, but both are concept cars and have not yet been mass-produced.

"fixed point" has become a frequent word in Guangfeng's responses, and in its latest reply on May 23, Guangfeng said that the company cut into the field of vehicle optics in early 2021 and has so far achieved six fixed-point landings. The so-called fixed point means that it will take some time to be designated by the automobile brand as the supplier and agree on the time node with the automobile company, from the fixed point to the batch supply, and then to the formation of a stable source of profit.

For example, Guangfeng Technology's smart headlights have not landed for a long time, although the product has been unveiled at last year's Shanghai Auto Show and Beijing Auto Show, it is understood that the company's ALL-in-ONE all-around laser headlamps, which integrates functions such as high-light ADB headlights, color-changing headlights, fog lights, ground information display, drive-in cinema and other functions, can meet diversified lighting, display, security and entertainment needs.

In addition, some people are worried that even if Guangfeng Technology's in-vehicle products are shipped in large quantities at the current price, they can earn considerable profits. From the perspective of gross profit margin, the company's profitability in recent years has not been stable. Last year, the company's sales gross profit margin was 36.22%, a year-on-year increase of 10.96%. In the first quarter of this year, it was 32.44%, a year-on-year decline of 8.29%.

Regarding the future development direction of Guangfeng Technology, the industry's view believes that it should continue to be firmly based in the automotive field. Several brokerage research reports pointed out that Guangfeng Technology has increased its partners in the automotive field, and its contribution to performance will gradually emerge. In addition, changes in automobile form, such as the electrification trend, the car grille has been cancelled, the front face position of the car has been redefined, and the demand for smart headlights will also increase, which also provides Guangfeng Technology with new growth points.

A reporter from Beijing Business Daily interviewed Guangfeng Technology on related issues, but no reply was received as of press time.

Beijing Business Daily reporter Tao Feng Wang Zhuli

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