《Jinjiyan》Tianya/Author Yang Qichao Shifeng/Editor
The electronic components distribution industry is an important bridge for upstream design and manufacturing manufacturers and downstream electronic product manufacturers. In recent years, the upstream electronic component design and manufacturing industry of electronic component distributors has continuously launched new processes, new functions and new products, and the market size of downstream application fields has continued to grow, promoting the rapid development of the electronic component distribution industry. As a well-known domestic electronic components distributor, Shenzhen Haoshanghao Information Technology Co., Ltd. (hereinafter referred to as "Haoshanghao") mainly sells electronic components to electronic product manufacturers in the application fields of consumer electronics, Internet of Things, lighting, etc., and provides related product design solutions and technical support services.
In recent years, Haoshanghao's revenue and net profit have steadily increased. The compound revenue growth rate from 2019 to 2021 reached 28.87% higher than that of its peers, with excellent growth potential. At the same time, Haoshanghao ROE "leads" its peers and has outstanding profitability. Having been deeply engaged in the field of electronic components distribution for many years, Haoshanghao has outstanding advantages in product lines and technical solutions in consumer electronics, Internet of Things, and lighting fields, and has accumulated high-quality customers and original supplier resources. Its main customers and original suppliers have been working together for more than ten years. At the same time, Haoshanghao's business has extended to the downstream, gradually expanding its IoT product design and manufacturing business, and has carried out chip customization business, corresponding to rapid growth in business revenue.
1. The downstream industry is developing steadily, and the market size of segmented application fields continues to expand
electronic component distribution vendors are the link between upstream electronic component design manufacturers and downstream electronic product manufacturers, and are an important link in the electronic component industry chain.
In recent years, the upstream electronic component design and manufacturing industry of electronic component distributors has continuously launched new processes, new functions, and new products, and the market size of downstream application fields has continued to grow. The domestic chip industry has gradually risen, jointly promoting the development of the electronic component distribution industry.
Overseas electronic component distributors have grown with the rise of overseas original manufacturers, while domestic electronic component distributors have gradually grown with the development of domestic downstream electronic product manufacturing. Therefore, the development prospects of downstream application fields are particularly important for domestic distributors.
Overall, the domestic electronic information manufacturing industry is developing steadily. According to data from the Ministry of Industry and Information Technology, in 2021, the domestic electronic information manufacturing industry above a certain scale achieved operating income of 14.13 trillion yuan, an increase of 14.7% over the previous year, an increase of 6.4 percentage points from the previous year, and an average growth of 11.5% in two years.
As a well-known domestic electronic components distributor, Haoshanghao mainly sells electronic components to electronic product manufacturers in application fields such as consumer electronics, Internet of Things, lighting, etc., and provides product solutions and technical support.
In the field of consumer electronics, driven by factors such as continuous development of technology, innovative consumer electronics products around the world emerge one after another, the penetration rate of continues to increase, the consumer electronics industry has developed rapidly, and has formed a huge industrial scale.
According to Statista data, from 2017 to 2021, the global consumer electronics industry market size was 6.13 trillion yuan, 6.41 trillion yuan, 6.67 trillion yuan, 6.75 trillion yuan and 7.24 trillion yuan respectively. It is estimated that the global consumer electronics industry market size will grow to 7.54 trillion yuan in 2022, with a huge market size and broad development prospects.
In the field of IoT, the global IoT market has maintained rapid growth in recent years, and it is expected that the IoT market will still have huge room for development in the future.
According to IoT Analytics data, from 2017 to 2021, the total number of Internet of Things connections worldwide will be 6.1 billion, 8 billion, 10 billion, 11.3 billion, and 12.2 billion respectively. It is expected that the global IoT market will grow by 18% to 14.4 billion active connections by 2022.
In the lighting field, LED lighting is one of the most energy-saving lighting solutions at present and has been widely used worldwide. The stable demand for LED lighting in residential and outdoor applications supports the growth of the LED lighting market.
According to Frost & Sullivan data, from 2017 to 2019, the global LED lighting market size increased from US$62.313 billion to US$67.715 billion. In 2020, due to the impact of the new crown pneumonia epidemic, the global LED lighting market size fell slightly. It is estimated that the global LED lighting market size will reach US$67.957 billion in 2022.
can be seen that the domestic electronic information manufacturing industry is developing steadily, the market size of the main downstream application fields has steadily increased, and the development prospects are broad.
2. The revenue CAGR is higher than comparable companies and has excellent growth potential. ROE "leads" the peers' profitability and outstanding
. Looking at its performance, Haoshanghao's performance has steadily increased in recent years.
From 2019 to 2021, Haoshanghao's operating income was 4.119 billion yuan, 5.261 billion yuan and 6.841 billion yuan, respectively. In 2020-2021, increased by 427.71% and 30.04% year-on-year; net profit was 53 million yuan, 118 million yuan and 186 million yuan, respectively, and year-on-year growth of 123.49% and 57.73% respectively from 2020 to 2021.
From January to June 2022, Haoshanghao's operating income was 3.64 billion yuan, a year-on-year increase of 3.86%; net profit was 86 million yuan, a year-on-year increase of -10.44%.
Looking at the operating income growth of comparable companies in the same industry, the good compound revenue growth rate shows an excellent side.
According to Oriental Fortune choice data, from 2019 to 2021, Haoshanghao's operating income CAGR was 28.87%.
During the same period, the operating income CAGR of Runxin Technology, a comparable company in the same industry, was 13.18%; the operating income CAGR of Shenzhen Huaqiang was 26.14%; the operating income CAGR of Liyuan Information was -10.82%; the operating income CAGR of Yingtang Intelligent Control was -27.17%; the operating income CAGR of Ruineng Technology was 18.79%; and the operating income CAGR of Yachuang Electronics was 12.65%. Due to the failure to disclose the financial data for 2021, comparable companies Ligong Technology and China Power Port were excluded.
At the same time, Jinjiyan analyzed data from comparable companies in the same industry and noticed that in recent years, 's return on equity also "leading" its peers with outstanding profitability.
According to Oriental Fortune Choice data, from 2019 to 2021 and January to June 2022, Haoshanghao's ROE was 46.07%, 29.98%, 34.64% and 12.67% respectively.
During the same period, the ROE of Runxin Technology, a comparable company in the same industry, was 4.00%, 6.04%, 7.55%, and 3.80% respectively; the ROE of Shenzhen Huaqiang was 12.87%, 11.71%, 15.20%, and 8.25% respectively; the ROE of Liyuan Information was 4.16%, -45.34%, 9.85%, and 5.07% respectively; the ROE of Yingtang Intelligent Control was 1.66% and 1 respectively; the ROE of Yingtang Intelligent Control was 1.66% and 1 respectively; the ROE of 1.66% and 1 respectively; the ROE of 1.66% and 1 respectively; the ROE of 1.66% and 1 respectively; the ROE of Liyuan Information was 1.16%. 4.70%, 1.98%, and 2.41%; the ROE of Ruineng Technology is 2.91%, 2.44%, 8.07%, and 3.55% respectively; the ROE of Ligong Technology is 15.84%, undisclosed, undisclosed, and undisclosed; the ROE of Yachuang Electronics is 13.31%, 17.68%, 20.98%, and 8.80% respectively; the ROE of Zhongdian Port is 4.75%, 16.15%, undisclosed, and undisclosed, respectively.
From 2019 to 2021 and January to June 2022, the average ROE values of the above eight comparable companies in the same industry were 7.44%, 3.34%, 10.61% and 5.31% respectively.
In addition, in recent years, the cost rate for the period has been declining year by year, and the internal control capabilities have been improved.
According to the prospectus, from 2019 to 2021, the period expenses of good and good will be RMB 198 million, RMB 135 million and RMB 163 million, respectively, accounting for 4.80%, 2.56% and 2.38% of operating income, respectively.
can be seen that Haoshanghao's performance has maintained a stable growth trend, its revenue CAGR is higher than its peers, and its growth is excellent; ROE "leading" comparable companies in the same industry, with outstanding profitability. At the same time, the cost rate during the period has been declining year by year, and the internal control capabilities have continued to be enhanced.
3. High-quality customer resources, stable cooperation, layout independent products to create new profit growth points
To ensure stable supply channels and high-quality technical services, downstream customers generally prefer to choose electronic component distributors with strong comprehensive service capabilities, and establish a strict access system for qualified suppliers to conduct a comprehensive inspection of suppliers before cooperation. In addition, since some electronic component distributors can provide solution support and technical services, the longer the cooperation cycle, the stronger the customer stickiness, thus forming a barrier to customer recognition.
has a large number of customers and high quality customers, which can enhance their ability to obtain high-quality resources from the original factory, and on the other hand, it can also reduce the impact of fluctuations in demand on single customers on performance to a certain extent.
For customers, Haoshanghao has certain advantages in product quality, supply stability, technical service capabilities, financial strength, etc., and some customers are willing to give priority to their products.
View the top five customers of Hao Shanghao. From 2019 to 2021, its sales revenue to the top five customers was 1.179 billion yuan, 1.84 billion yuan and 2.231 billion yuan, respectively, accounting for 28.63%, 34.98% and 32.62% of the current operating income, respectively, and there is no major customer dependence.
htmlFor more than 0 years, Haoshanghao has focused on the field of electronic components distribution and has formed unique advantages in consumer electronics, Internet of Things and other fields, making "Beigaozhi", "Tianwu", and "HaoShanghao" have certain brand advantages. After years of accumulation and development, Haoshanghao has formed a "procurement, sales and storage" system covering the whole country.At the same time, based on customer product needs and years of technical accumulation, Haoshanghao's business has extended to the downstream, gradually developed the Internet of Things product design and manufacturing business, and carried out chip customization business.
In terms of IoT product design and manufacturing business, Haoshanghao has launched a number of smart home products, IoT wireless modules and public network communication equipment; in terms of chip customization business, Haoshanghao has launched a number of TWS Bluetooth headsets and supporting chips.
According to the prospectus, from 2019 to 2021, Haoshanghao's Internet of Things product design and manufacturing business revenue was RMB 8.4907 million, RMB 12.2109 million, and RMB 22.7011 million, respectively; the chip customization business revenue was RMB 35,300, RMB 1.0524 million, and RMB 4.3126 million, respectively.
4. The original factory resources have more than 100 agents with rich product lines. The cooperation period of major suppliers has been more than ten years. The product lines represented by authorized distributors are the basis for their electronic components distribution business. The quantity and quality of the agent's product lines are an important manifestation of measuring the overall competitiveness of distributors. Through the original authorization, high-quality electronic components distributors can obtain market-competitive products at reasonable prices and ensure stability of supply. This is one of the core competitiveness of electronic components distributors.
At present, Haoshanghao Agent's products mainly include SoC chip , wireless chips and modules, power and power devices, analog/digital devices, memory, LED devices, sensors, processors, optoelectronic devices, structural components and passive devices and other various electronic components. From 2019 to 2021, Haoshanghao sold more than 10,000 material numbers.
Among them, the main original brand is well-known, reliable product quality, and rich variety, covering the main product categories in the fields of consumer electronics, Internet of Things, lighting, etc., and can meet the procurement needs of most of the upstream and downstream customers.
From 2019 to 2021, the top 30 original factories that have obtained authorization were 3.997 billion yuan, 5.524 billion yuan and 7.382 billion yuan, respectively, accounting for 91.31%, 95.72% and 96.67% of the total purchase amount in each period.
has a lot of original factory resources in sub-sectors such as consumer electronics, Internet of Things, and lighting, which is conducive to its electronic components distribution business, and also helps Haoshanghao adjust the impact of fluctuations in some sub-sectors on the overall business and improve Haoshanghao's risk resistance.
博官网 (SIMCom) awarded Haoshanghao’s “2019 Excellent Agent”, 2020 “Excellent Agent”, 2021 “Excellent Agent”, and “Like Tiger Adds Billion Award”; Longsys awarded Haoshanghao’s “2021 Excellent Partner”, and awarded Haoshanghao’s “2021 Excellent PM Award” and “Enlarge Land Development Award” to Haoshanghao’s employees.
For the original manufacturer, Haoshanghao's product promotion ability is strong. The original manufacturer will be moderately tilted towards it in terms of product resources, customer resources and credit policy . Some original manufacturers will actively request cooperation with Haoshanghao to promote its new products or explore new markets, and some original manufacturers' end customer resources will also be allocated to Haoshanghao first.
5. R&D personnel account for 34.39%. 12 core technologies improve technical service capabilities
Electronic components distribution industry is not engaged in the production of specific products, and its technical level is mainly reflected in technical service capabilities. Electronic components distributors need to have the ability to provide personalized, differentiated and customized solutions to different customers to further explore and meet customers' diversified needs. This way, electronic component distributors can improve their irreplaceability and enhance the user stickiness of downstream customers.
In terms of R&D team building, as of December 31, 2021, Haoshang Hao has 162 R&D technical personnel, accounting for 34.39% of the total number of employees. His professional background involves multiple majors such as electronic information, software engineering, communication technology, project management, etc.
For SoC chips, Haoshanghao can provide customers with system-level solutions and on-site technical support; for wireless chips and modules, power and power devices, analog/digital devices, memory, sensors, processors, optoelectronic devices and and other products, Haoshanghao can provide customers with product-level solutions and on-site technical support.
aims at the original SoC chip products, continues to carry out application-side solution design and technology development, participates in the development of terminal product solutions for downstream customers. After years of research and development and accumulation, Haoshanghao has formed twelve core technologies at the application side of chip products and applied them to the overall solution design. Core technologies include TV software and hardware collaborative design technology, Camera software and hardware collaborative design technology, TWS noise-reduction Bluetooth headphone software and hardware collaborative design technology, large-screen backlight control driver circuit architecture, etc.
Among them, core technologies such as software and hardware collaborative design technology can provide customers with overall TV solutions and form a good market position in the TV field; core technologies such as TWS noise-cancelling Bluetooth headphones software and hardware collaborative design technology can provide customers with Bluetooth headphone solutions and form a good market position in the Bluetooth headphone field. In addition, Haoshanghao has also developed a variety of solutions such as IPC overall solution, set-top box overall solution, Bluetooth bracelet solution and other solutions.
Because Haoshanghao continues to develop and test application-side applications for chip products, he is more familiar with the performance of chip products. It assists customers in selecting new products and developing application solutions can save customers a lot of time and costs.
As of September 13, 2022, Haoshanghao has obtained a total of 50 patents (including 2 invention patents, 46 utility model patents, and 42 appearance design patents), 152 software copyrights, and 2 integrated circuit layout design rights , highlighting its technical R&D capabilities.
in terms of research projects, as of September 13, 2022, the 14 R&D projects that Haoshanghao Electronic Components Distribution Business are mainly SoC system-level solutions, used to broaden the application of its existing SoC chips in different scenarios; the 6 R&D projects in the Internet of Things product design and manufacturing business are mainly aimed at the research and development of specific IoT terminal products, and are used to enrich the types of Haoshanghao's existing IoT terminal products; the main research projects in the chip customization business are low-voltage motor driver chip design.
In the future, Haoshanghao will continue to consolidate its product line and technical solution advantages in the fields of consumer electronics, Internet of Things, and lighting, gradually expand its business scale in the fields of industry, communications and automobile markets, and achieve the extension of the distribution business. At the same time, Haoshanghao will continue to increase its investment in IoT product design and manufacturing business and chip customization business to create new business growth points.
