Ming-Chi Kuo, an analyst at TF International, stated today that investors are concerned that Goertek’s loss of orders due to quality issues with the AirPods Pro2 is likely to affect current orders and future orders from the company. There is, however, some evidence to suggest that investors are overly pessimistic based on the latest survey.
It was pointed out by Guo Mingchi that first of all, Goertek is expected to resume production of the AirPods Pro 2, which will contribute to the company regaining revenue and profit momentum. Additionally, it has been determined that AirPods 2, AirPods 3 and other parts orders placed by Goertek have not been affected by this incident. At the end of the day, Goertek has also received orders for the assembly of the HomePod mini 2, which is expected to ship in large quantities in 2H24 based on their NPI.
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A risk reminder announcement was issued by Goertek last November 8 in which the company stated that it had recently received a notification from a major overseas customer that the company would be suspending the production of one of its smart acoustic complete machine products until further notice. Since the “big foreign customers” are the three giants of the fruit chain, they have a clear direction, so once the news broke out, it immediately attracted wide attention as soon as the news was made public. As a result, as a result of investigation, Ming-Chi Kuo stated that this time, Goertek stopped producing Apple’s AirPods Pro 2 earphones. Rather than a problem with demand, there is a greater likelihood that the suspension of production is caused by production problems. Luxshare Precision has also filled the void in production left by the shutdown of Luxshare Precision.
It was announced by Goertek on December 2 that its annual performance forecast for 2022 had been revised. It is estimated that the net profit attributable to the shareholders of listed companies will be 1.71 billion to 2.137 billion CNY in 2022, a decrease of 50%-60% year-on-year. The previous net profit was expected to be 4.06 billion CNY. 100 million CNY- 4.7 billion CNY.
Last month, Ming-Chi Kuo also said that according to the latest survey, Hon Teng Precision (a subsidiary of Foxconn Group) may replace Goertek as a new assembler of AirPods and thus benefit significantly.
At present, Goertek shares have hit the daily limit, with a turnover of over 4.8 billion CNY.
