Apple’s earnings exceed expectations, future layout affects “fruit chain”

Original title: Apple’s earnings exceed expectations, future layout affects “fruit chain”

In the early morning of January 28, Beijing time, Apple released its financial report, achieving revenue of $111.439 billion in the first quarter of fiscal 2021, setting a record for the company’s quarterly revenue. Although Apple’s performance is eye-catching, but 28 A-share market Apple concept stocks fell. Compared with the short-term performance of the market, the industry pays more attention to Apple’s future product and business layout, as well as the possible impact on related companies in the industrial chain.

80% of “fruit chain” enterprises’ performance forecast

Apple’s first quarter performance exceeded Wall Street analysts’ expectations. According to the financial report, Apple’s revenue in the first quarter of fiscal 2021 was $111.439 billion, a year-on-year increase of 21%; its net profit was $28.755 billion, a year-on-year increase of 29%; and its earnings per share was $1.68, a year-on-year increase of 35%. Among them, the revenue of Greater China region was US $21.313 billion, a year-on-year increase of 56.97%.

In terms of product line, iPhone’s revenue in the first quarter was US $65.597 billion, accounting for 58.86% of Apple’s total revenue, with a year-on-year growth of 17.23%; wearable devices, home furnishings and accessories revenue was US $12.971 billion, with a year-on-year growth of 29.58%; iPad revenue was US $8.435 billion, with a year-on-year growth of 41.12%; MAC revenue was US $8.675 billion, with a year-on-year growth of 21.16%; service revenue was US $15.761 billion, with a year-on-year growth of 23.96%.

The message of Apple’s order addition was also verified from the side. Luca maastri, Apple’s chief financial officer, revealed that after the launch of new products last year, the demand was very strong. Apple was facing the pressure of supply and inventory, but the pressure of supply will be gradually solved in the second quarter.

In the A-share market, a number of Apple concept stocks showed a trend of rapid growth in performance last year. In the apple concept section of tonghuashun, 45 enterprises have issued performance forecasts for 2020, 36 enterprises have expected good performance (including pre increase, loss recovery and slight increase), and 19 enterprises are expected to increase their net profits by more than 100% in 2020.

Among them, Lucent precision, the leading enterprise, is expected to increase its annual net profit by 50% to 55%, Lansi technology is expected to increase its annual net profit by 98% to 105%, shentianma A is expected to increase its annual net profit by 74.83% to 98.95%, Changdian technology is expected to increase its annual net profit by 1287.27%, Changying precision is expected to increase its annual net profit by 532.28% to 675.44%, and Dongshan precision is expected to increase its annual net profit The growth rate is 99.24% to 127.71%, the annual net profit of Geer is expected to increase by 115.0% to 125.0%, and the annual net profit of Huanyu CNC is expected to increase by 784.55% to 961.46%.

Apple’s new business development attracts attention

In the past decade or so, a number of bull stocks in Apple’s industrial chain have emerged in A-share market, including lucent precision, Geer, lansys technology, etc.

Judging from the stock price trend in 2020, the performance of individual stocks in Apple’s supply chain is differentiated. According to the data of tonghuashun, 50 of the 98 stocks in the apple concept sector will achieve positive stock price growth in 2020. Among them, the stock prices of leading companies in Apple industrial chain, such as Changdian technology, Goethe shares and Desai battery, all rose by more than 60% (after the previous right restoration treatment, the same below), while lucent precision and Lansi technology rose by more than 100% in the whole year. Berger shares, which landed in a shares in February last year, rose more than 300% in less than a year. Meanwhile, as the leading companies in Apple’s industrial chain, the shares of ofI light, Xinwei communication and industrial Fulian fell by 15% to 25% last year.

At present, the market has high expectations for the 5g mobile phone, folding screen, miniled and TWS headphones in Apple’s industrial chain. Cook, Apple’s chief executive, said on the earnings call that the wearable device business is still in its early stage, and there is a lot of room for growth in different markets for this business and other Apple products. Guo Mingxu, an analyst at Tianfeng international, pointed out that the long-term advantage of Chinese manufacturers in obtaining orders from overseas competitors is still there, and they are still looking positively at the long-term trend of Apple’s supply chain in A-share market. Suppliers with new business visibility, ability to meet Apple’s overseas production demand, and significant beneficiaries of new products and technologies in 2021 are still the focus of market attention.

It is worth noting that despite the good performance, many leading companies in Apple industrial chain have high customer concentration. According to the annual report of 2019, the sales amount of the largest customers of Goethe, Lansi technology, Desai battery and Lucent precision accounted for 40.65%, 43.07%, 46.76% and 55.43% of the total annual sales respectively.

Among them, the gross profit rate of some companies showed a downward trend for many years. Take Goethe as an example. According to the data of tonghuashun, although the company’s revenue and net profit both achieved a substantial growth of more than 45% in 2019, its gross profit margin continued to decline. From 2014 to 2019, the gross profit rate of sales of Goethe shares was 27.43%, 24.90%, 22.39%, 22.01%, 18.82% and 15.43% respectively, which decreased for six consecutive years. However, in the first three quarters of last year, gross profit margins of many companies improved. According to the data, in the first three quarters of 2020, about half of the 98 stocks in Apple’s concept sector, including Goethe, BOE a, and ofI light, showed an increase in gross profit margin.

(editor in chief: Zhao Chao, LV Qian)