2439_tt_merry - ookui/invest GitHub Wiki

Merry Electronics (2439 TT)

Introduction

Business breakdown:

  • Speaker: 26% of the total sales in 2Q14
    • 2011: enter into tier-1 NB high-power speaker supply chain. Competitors include Hosiden, Fortune Grand Tech.
    • 2014: enter into tier-1 smartphone/tablet (Apple) micro speaker supply chain, and will start to ship in 3Q14. Competitors are AAC, Goer, Dover (through spin-off Knowles). ASP is less than speaker in NB, but GP margin is much higher to 30%. Estimate penetration for Apple tablet/SP is 10-15%, and it will account for 6%, 13% of Merry’s 15E & 16E sales.
  • Entertainment: 45% of total sales in 2Q14, and 70%~80% of them are headphones, 20%~30% are earphone. Merry provides ODM for Logitech, Bose, B&O and Beats. Competitors include Primax,
  • Power Pack: 9% of the total sales in 2Q14. Customers include Mophie, Nokia. GPM is low.
  • Hands Free: 19% of the total sales in 2Q14. Customers include Nokia, Sony, HTC, ZTE. Competitors like Hosiden. GPM is low.

Valuation

Update