Skyworth Digital: High profit growth in the first half of the year, performance exceeding expectations

Skyworth released a performance forecast for the first half of the year, with net profit attributable to its parent company ranging from 430 million yuan to 550 million yuan, with a median of 490 million yuan (YoY +72.4%); net profit after deducting non-owned shareholders was 382 million yuan - 503 million yuan, with a median value of 440 million yuan (YoY +191%). The performance exceeded expectations.

Revenue and gross profit increased in the first half of the year, and the company's performance exceeded expectations

The company's median net profit attributable to the parent company was 490 million yuan (YoY +72.4%); the median net profit after deducting non-ownership net profits was 440 million yuan (YoY +191%).

The high performance growth was mainly due to the year-on-year increase in revenue scale and gross profit margin from its main businesses of smart terminals and broadband connection equipment. In the same period last year, the company's transfer of 55% equity in Qunxin Security and government subsidies brought in non-recurring income of up to 130 million yuan. This year's non-recurring income has shrunk significantly to 0.4-0.5 billion yuan (estimated at the mid-value), and the profitability of the core business has been highlighted.

The Gigabit broadband business is booming, and the share of leading manufacturers has increased

The Gigabit era has arrived, and operators’ gateway product purchases are likely to increase in volume and price. China Mobile’s centralized procurement (first batch) of smart home gateway products will be implemented from 2022 to 2023, including 20.95 million units of GPON products, 1Purchased 5.35 million units of 0G GPON products. Skyworth Digital GPON won a total of 3.52 million units, with a share of 16.8%; 10G GPON won a total of 1.006 million units, with a share of 18.8%. The share has increased significantly compared with last year (2020-2021).

The main business of machine boxes is recovering, and 8K ultra-high definition has become a trend

Domestic market: The construction of digital economy has accelerated the maturity of the high-tech video industry chain. The mobile phone boxes of the three major communication operators have been upgraded from high-definition to smart and P60, and from the previous simple video service to the current integration of rich and colorful content, cloud games, VR and other multi-functional services. The company has achieved new breakthroughs in the centralized procurement and sales of mobile phone boxes for the three major domestic communication operators. In overseas markets, the company combines localized teams and overseas production and delivery, especially the substantial growth in markets such as Latin America, the Middle East, India, and Europe, to overcome many unfavorable factors and maintain a growth momentum in overseas business.

VR hardware equipment has strong strength and full development potential

As an A-share target of scarce VR equipment, the company has more than 7 years of experience in the research and development of VR hardware products and industry solutions, and has mass-produced a variety of VR head-mounted display equipment products. The company has ultra-short throw optical technology advantages and multiple software algorithm patents, with business potentialFull. In overseas markets, the company’s VR products have been sold in the United States, Japan, South Korea, the European Union and other countries and regions. In the domestic market, the company has an early layout in the field of medical visits and has certain first-mover and comparative advantages; in the education field, it cooperates with domestic education content partners to launch solutions and has also achieved sustained shipment sales.