GoerTek (002241)) announced the performance forecast on the evening of June 29. The company expects its half-year net profit to be 760 million yuan to 786 million yuan in 2020, an increase of 45% to 50% year-on-year.

For the reasons for the change in performance, GoerTek said in the announcement that compared with the same period last year, it was mainly due to the increase in sales revenue of the company's Smart Wireless Headset (TWS) products and improved profitability.

In 2019, Gore achieved operating income of 35.148 billion yuan and net profit attributable to its mother of 1.281 billion yuan, an increase of 47.99%/47.58% year-on-year.

According to public information, as a leading acousto-optic product and solution provider, GoerTek has been deeply immersing in acoustic technology for two decades, gradually developing optoelectronic modules and products, and forming a "parts + finished product" product layout. The main products include TWS headphones, Smart speakers, VR headsets, smart wearables and other complete equipment, as well as precision components such as acoustics, sensors, MEMS and optoelectronic modules, are the world's leading one-stop suppliers of acousto-optic products. Especially in the field of TWS earphones, GoerTek has the core technology of integrated development of software and hardware, which can provide one-stop solutions from structural design, antenna design, audio IC integration, sensor integration to embedded system integration. The yield rate of the production line continues to improve, and the proportion of self-made precision parts has steadily increased, leading the company in the TWS market.

At present, TWS products contribute to the major increase in the acoustics business. According to Counterpoint's prediction, the shipment of TWS earphones is expected to reach 230 million units in 2020, with a year-on-year growth rate of 78.29%, and the high growth trend of the TWS earphone market continues.

Everbright Securities pointed out in the research report that the launch of the Airpods series of explosive single products has driven the rapid growth of the TWS market. The establishment of the Bluetooth low energy standard has also laid the foundation for the future expansion of the Android TWS market. The agency predicts that the shipment of AirPods and Android TWS headsets will increase from 90 million/1 billion to 200 million/300 million units in 2020-2022. GoerTek is the second largest business of AirPods and the main generation of high-end Android headsets. For industry and commerce, the share of foundry is expected to be 35%/20%.

According to Strategy Analytics data, AirPods shipments will reach 60 million units in 2019 and 90 million units in 2020. The continued growth of AirPods shipments is expected to bring a considerable increase in performance for the company. At the same time, the company also cooperates with Huawei, etc. Android TWS customers have established a cooperative relationship and are expected to fully benefit from the rapid growth of the TWS headset market.

At the same time, the strategic layout of its smart wearable business and VR/AR has gradually opened up vast space for it. Goertek mainly manufactures smart watches/bracelets for manufacturers such as Fitbit and Xiaomi, and provides VR/AR devices and interactive products for manufacturers such as Sony and Oculus.