Goer's Acoustics and AAC's Leading Debate

Goerth Acoustics, a leading company in the A-listed companies in the acoustics market, is the same Apple supplier as AAC Technologies. In the past few years, Apple’s orders accounted for more than 20% of its revenue! However, as far as the acoustic market is concerned, under the strong suppression of AAC Technologies, many acoustic manufacturers are not operating satisfactorily. For example, total acoustics are eventually backdoored, and Goer acoustics can be said to be a powerful main force. one!

After that, Lixun Precision, in the event that it was unable to acquire Meirui, further consolidated its laws and resistance to attempt to share Apple's order bonus, which proved to be a success! However, there are news in the industry that, despite this, but the effect is not great! While Goer acoustics is difficult to achieve rapid growth in the acoustics market, it further tried to transform itself into a market for VR, wearables, robots, etc., and became a Oculus Rift and Sony PSVR foundry! Similarly, AAC Technologies is also distributing to other markets, such as touch motors, antennas, housings and optical lenses!

Although the current Goer acoustics are moving into more intelligent terminal equipment markets, the largest customer is Apple in terms of customer groups. From 2014 to 2016, Apple orders accounted for its total revenue. Reached 26.31%, 20.18%, 26.76% respectively! In contrast to this, AAC Technology, Apple's orders in its total revenue accounted for 35.1%, 28.4%, 47.2% respectively! Obviously, during the past year, the competition between the two has been very fierce, but for now, both are judged early in the acoustics market, and both will be transformed into different markets in the future!

Goer's shareholding pressure on AAC Technology: net profit has been less than half of the latter

Recently, Goerget has announced its 2017 financial report. According to the financial report data, in the past year, its revenue reached 25.546 billion yuan, a year-on-year increase of 32.40%, which is the first time its revenue exceeded 200. Billion mark, and its net profit also reached 2.139 billion yuan, an increase of 29.53%. From this point of view, it looks very good, this is undoubtedly very bright in the current smart phone market!

In terms of subdivisions, Goer's 2017 revenue from electro-acoustic devices was 15.266 billion yuan, accounting for 59.78% of revenue, an increase of 39.56% year-on-year, which is an important one. The customer is Xiaomi. Xiaomi's growth in shipments in the past year is obvious. The revenue of electronic components business last year was 9.836 billion yuan, accounting for 38.52% of revenue, an increase of 26.32% year-on-year!

Let’s look at AAC's 2017 results. According to AAC Technology's 2017 financial report, its 2017 revenue reached 21.119 billion yuan (83% of the top five customers), compared with 15.507 billion in 2016. Compared with the same period of last year, the yuan increased by 36%, of which revenue in the fourth quarter reached 7.151 billion yuan, an increase of 25% from the 5.717 billion yuan in 2016.

In addition, in terms of net profit, net profit in 2017 was 5.325 billion yuan, which was a year-on-year increase of 32% compared to 2016's 4.026 billion yuan, and net profit in the fourth quarter was 1.832 billion yuan, compared with 2016. The year-on-year increase of 1.571 billion yuan was 17%. However, in terms of gross profit margin and net profit margin, its gross profit margin in 2017 decreased by 0.2 percentage points to 41.3%. Of course, this is still high in the mobile phone industry, while its net profit has decreased by 0.8%. Percentage point to 25.2%!

From its point of view over the past few years, from 2008 to 2017, AAC's performance has been growing for 8 years from 2010 to 2017. Starting from acoustic devices, the current business involves touch motors, RF components, and optical lenses. Waiting for a variety of businesses, and the proportion of new business revenue has exceeded the initial acoustic device business!

Judging from its specific business in 2017, sales of touch motors and wireless RF structural components exceeded sales of acoustic divisions as expected. Driven by the increase in customer penetration rate, the touch motor and wireless RF structural business contributed 50% of total revenue, which was an increase of 51% year-on-year. The Acoustics Division continued to continue its accelerating growth in acoustic performance with annual revenue growth of 20% and 45% of total revenue.

For the next two revenues and net profit for 2012-2017, the revenue of Goethe's shares during this period was 72.53, 100.48, 126.9, 136.56, 192.87, 255.36, respectively. Billion yuan, AAC's revenue was 62.83, 80.96, 88.79, 117.39, 156.07, 22.119 billion yuan! Obviously, Goethe's shareholdings have been a lot of pressure on Acoustic Technology!

However, from the perspective of net profit, the net profit of Goer's shares is far less than that of AAC Technologies. The net profits of Goethe's shares for 2012-2017 are 9.07, 13.06, 16.57 and 12.51 respectively. 16.51 billion yuan, 2.139 billion yuan, relatively speaking, in addition to a sharp decline in net profit in 2015, the rest of the years has been a steady increase, but the Swiss company's net profit growth is obviously more horrible, respectively 19.80 , 25.12, 25.81, 34.35, 40.22, 5.325 billion yuan!

Both have achieved double growth in terms of revenue and net profit in the past five years. In addition, we can also see that there is an increase between the two, such as the 2014 song. The company's net profit increased by 26.87% year-on-year, while AAC Technologies had almost no growth in this year. By 2015, Goeor's share business dropped by 24.50%. At this time, AAC's net profit soared 36% year-on-year. .74%! By 2016-2017, the net profit of Goers' shares increased by 31.97% and 29.53% year-on-year, respectively, while AAC's net profit grew by 34.87% and 32% respectively year-on-year.

According to the authors of the industry, the most important customer for both Goethe and AAC is actually Apple. As stated before, from 2014 to 2016, Apple’s order was in its total revenue. The proportions of the accounts reached 26.31%, 20.18%, and 26.76% respectively. In contrast to this, AAC Technology, Apple's orders in its total revenue accounted for 35.1%, 28.4%, 47.2% respectively! Obviously, for Apple's orders, the proportion of AAC Technologies should be much more than that of Goeers!

The level of the acoustics market has been set: the future transformation parting ways

Overall, this is the "common problem" of many Apple suppliers! In this situation, many suppliers are actively seeking transformation. Goerre Acoustics and AAC Technologies are no exception! However, from the perspective of the transformation, there is a big difference between the two!

From Goethe's acoustics perspective, it is more approaching to the smart terminal market. It plans to focus on the strategic direction of the four major products: “big acoustics, wearables, sensors, and precision manufacturing” to grasp the new opportunities for the intelligent hardware industry in the “Internet+” era. Taking the smart mobile terminal industry as the core and taking the market and technology as the guide, it is expanding new business growth points in strategic areas such as smart audio, smart wearable devices, smart entertainment, and smart home.

According to its report in 2016, the company's strategic transformation direction has been further clarified, and the layout of the industrial chain has been optimized based on the four strategies of Hearable, Wearable, Viewable and Robotics. The company strengthened internal operations management, increased investment in technology research and development, and continuously improved the ability to develop new products; external in-depth promotion of international and domestic large customer expansion, integration of global technology, research and development, market outstanding resources, and further enhance the company's overall competitiveness.

In addition, in recent years, AAC's business sources mainly include moving coil devices, touch motors, and wireless RF and MEMS businesses, all of which account for its major revenue! In terms of new business, AAC's current new business mainly consists of the 3D glass back cover market. In this market, AAC Technologies hopes to introduce an integrated integration solution, namely: 3D glass front cover + amorphous alloy middle frame bracket + Speaker BOX + receiver + optical lens, 3D glass, amorphous alloy middle frame bracket and optical lens are the new expansion of AAC.

The second is in the lens market. In terms of optical lenses, AAC Technologies has introduced a wafer level glass lens (MLL). It is understood that the multiple advantages of wafer-level lenses compared to existing solutions, the company's glass wafer-level lens (WLL) will become a subversive solution.

However, for AAC Technologies, in the 3D glass back cover market, AAC Technologies will undoubtedly want to enter the Apple supplier, but in this regard, Lance Technology and Shengli Precision are also Apple suppliers and behind the 3D glass. The Gai Market is also heavily invested, which can be described as a major rival for AAC Technologies. In the lens market, as AAC's new expansion business, it is also facing a large number of manufacturers. Among the most notable ones are Kangkong and Goerre Acoustics. Wait!

From the perspective of the future development direction of GoerTek Acoustics and AAC Technologies, its main business is still acoustic devices, and it is expanding into peripheral businesses. This has become the norm in the mobile phone supply chain. Many supply chain companies have adopted this model! From the future business perspective, it is very important that the optical lens market, both have a layout, but in terms of the entire market, the future of the competition will also be very fierce!