标题：Goertek IncSony PS VR launched;sole supply showing leading tech & insights
发布日期：2016-03-18 9:43:02
内容： What happened At the Game Developers Conference (GDC) held at 5:00am (Beijing time) this morning, Sony officially announced theretail price of its PS VR at US$399 (Rmb2,598). PS VR will be on sale in October 2016. The Sony PS VR package only comes equipped with a VR headset, earphones, processing box and several wires—the PSMove controller and camera are excluded. Sony said ~50 PS VR games will be rolled out from October 2016 untilyear-end and include Star Wars. A free download for the Playroom VR will be available to all users. Comments Increasing awareness of VR; Sony PS VR enjoying advantages. With the rollout of mainstream VR devices, theconsumer awareness of VR has increased. Gamer Network conducted a survey among 14,000 game players anddiscovered that 15% plan to buy VR this year, among which 35% have had PS4. Those who plan to buy Sony PS VR/HTCVive/Oculus Rift account for a respective 20.0%/15.5%/13.7%, hinting advantages for Sony in VR sales. Also, theUS$399 price of is attractive (vs. US$599 for Oculus Rift and US$799 for HTC Vive). Raising estimates for Goertek 2016 VR shipments; attention to capacity and yield rate. Recent supply-chainchecks and communications with the company, suggest that the industry has become more optimistic about VR sales,given the hot pre-sales and upcoming shipments. We raise our estimate of Oculus/Sony’s VR shipment to 0.75/1.2mnunits this year (from 0.5/1mn previously). Goertek is the exclusive supplier for Oculus Rift and Sony PS VR. VR maycontribute 15~20% to its revenue in 2016. However, capacity and yield rates must improve further to meet demand. Establishing foothold as a VR hardware solution provider; leading in both mobile and external VR. 1)Goertek announced on March 14 that it signed a cooperative agreement with Qualcomm to develop ASIC software. Inaddition, it will obtain technical support for VR/AR image processing from Snapdragon 820 chips and tap into mobile VRwith competitive edge. 2) In addition to the existing acoustic technique, Dynaudio acquired AM3D to obtain acousticenhancement, stereophonic and 3D acoustic technology. 3) The company has accumulated more optical adjustmentand lens technology during the co-development with Oculus on VR lens. Stay cautious on 1Q outlook; expect YoY earning momentum to improve; earliest turnaround in 2Q. Netprofit improved slightly each quarter over 2~4Q15 (-29%/-28%/-27% YoY). 1Q16 is traditionally the slack season,although investments in new businesses and marketing expense remain high during the transformation. However, withthe contribution from VR and acoustic spec upgrades by the major client in 2H, we expect YoY earnings momentum toimprove and positive earnings growth this year. The inflection point of earnings may emerge in 2Q the earliest. Earnings forecast and valuation: We are reviewing the financial data. Maintain 2015/16/17e EPS atRmb0.91/1.21/1.62. The stock now trades at 26.0x/19.6x/14.6x 2015/16/17e P/E. The value is emerging.Reiterate BUY and TP of Rmb32. Risks: Sales of VR products disappoint; a shortage of key spare parts; low qualityVR hardware hurts the user experience; unsatisfactory sales affect investment sentiment.
发布日期：2016-03-18 9:43:02
内容： What happened At the Game Developers Conference (GDC) held at 5:00am (Beijing time) this morning, Sony officially announced theretail price of its PS VR at US$399 (Rmb2,598). PS VR will be on sale in October 2016. The Sony PS VR package only comes equipped with a VR headset, earphones, processing box and several wires—the PSMove controller and camera are excluded. Sony said ~50 PS VR games will be rolled out from October 2016 untilyear-end and include Star Wars. A free download for the Playroom VR will be available to all users. Comments Increasing awareness of VR; Sony PS VR enjoying advantages. With the rollout of mainstream VR devices, theconsumer awareness of VR has increased. Gamer Network conducted a survey among 14,000 game players anddiscovered that 15% plan to buy VR this year, among which 35% have had PS4. Those who plan to buy Sony PS VR/HTCVive/Oculus Rift account for a respective 20.0%/15.5%/13.7%, hinting advantages for Sony in VR sales. Also, theUS$399 price of is attractive (vs. US$599 for Oculus Rift and US$799 for HTC Vive). Raising estimates for Goertek 2016 VR shipments; attention to capacity and yield rate. Recent supply-chainchecks and communications with the company, suggest that the industry has become more optimistic about VR sales,given the hot pre-sales and upcoming shipments. We raise our estimate of Oculus/Sony’s VR shipment to 0.75/1.2mnunits this year (from 0.5/1mn previously). Goertek is the exclusive supplier for Oculus Rift and Sony PS VR. VR maycontribute 15~20% to its revenue in 2016. However, capacity and yield rates must improve further to meet demand. Establishing foothold as a VR hardware solution provider; leading in both mobile and external VR. 1)Goertek announced on March 14 that it signed a cooperative agreement with Qualcomm to develop ASIC software. Inaddition, it will obtain technical support for VR/AR image processing from Snapdragon 820 chips and tap into mobile VRwith competitive edge. 2) In addition to the existing acoustic technique, Dynaudio acquired AM3D to obtain acousticenhancement, stereophonic and 3D acoustic technology. 3) The company has accumulated more optical adjustmentand lens technology during the co-development with Oculus on VR lens. Stay cautious on 1Q outlook; expect YoY earning momentum to improve; earliest turnaround in 2Q. Netprofit improved slightly each quarter over 2~4Q15 (-29%/-28%/-27% YoY). 1Q16 is traditionally the slack season,although investments in new businesses and marketing expense remain high during the transformation. However, withthe contribution from VR and acoustic spec upgrades by the major client in 2H, we expect YoY earnings momentum toimprove and positive earnings growth this year. The inflection point of earnings may emerge in 2Q the earliest. Earnings forecast and valuation: We are reviewing the financial data. Maintain 2015/16/17e EPS atRmb0.91/1.21/1.62. The stock now trades at 26.0x/19.6x/14.6x 2015/16/17e P/E. The value is emerging.Reiterate BUY and TP of Rmb32. Risks: Sales of VR products disappoint; a shortage of key spare parts; low qualityVR hardware hurts the user experience; unsatisfactory sales affect investment sentiment.
