The company's high-end aluminum alloy materials, infrared optics and laser devices dual main business pattern is clear, long-term trend remains unchanged. In the first half of 2021, the company realized revenue of 351 million yuan, + 162.61% compared with the same period last year, and realized net profit of 15.9851 million yuan, + 237.84% compared with the same period last year. The first phase of the industrialization project of infrared optics and laser devices of Anhui Guangzhi Company, which is controlled by the company, was officially put into production in April 2021, which brings new performance growth points for the company, and is also expected to break the blockade of foreign technology and realize the localization of related technologies. Based on the 2022 valuation of 35 times PE, the company is given a target price of 38.3 yuan in 2022, maintaining a "buy" rating.
The company's semi-annual report data for 2021 are eye-catching, mainly due to the impact of new sales of infrared optics and laser materials.
2021H1 achieved an operating income of 351 million yuan, a substantial increase of 162.61% over the same period last year, a net profit of 15.9851 million yuan, an increase of 237.84% over the same period last year, and a deduction of 13.3204 million yuan for non-net profit, an increase of 317.66% over the same period last year. The growth is mainly due to the new infrared optics and laser materials business. In the second quarter, the revenue and net profit of single quarter were 202 million yuan and 9.9522 million yuan, up 94.02% and 6.46% over the same period last year.
The infrared optics and laser devices project has been officially put into production and has become a new business growth point. In April 2021, the company's infrared optics and laser devices industrialization production base, Anhui Guangzhi, was officially put into production. With the high-end production equipment put into use, the production capacity was greatly increased and the industrialization process was accelerated. 2021H1's revenue from infrared optics and laser materials reached 260 million, an increase of 85.90 percent over the same period last year, with a gross profit margin of 33.81 percent, accounting for 73.86 percent of the company's total revenue, up from 54.52 percent in 2020.
There is a broad space for the development of emerging business, and the market competitiveness continues to improve. As the company's new main business, infrared optics and laser devices have broad market prospects: we expect the global infrared market to reach US $18.3 billion in 2023, including US $10.8 billion for military and US $7.5 billion for civilian use. The company relies on this new business to achieve large-scale production capacity of the whole industry chain, and then enhance the overall competitiveness.
The business of high-end aluminum alloy materials remained stable, and the gross profit margin gradually increased. 2021H1's aluminum alloy materials and parts business achieved a revenue of 92 million yuan, a gross profit of 15 million, and a gross profit margin of 16.30%, up from 11.77% in 2020. Taking advantage of its high-end equipment, technical advantages and production experience in the field of high-performance aluminum alloy, the company continues to consolidate its production, R & D and marketing advantages in the field of high-end aluminum alloy materials and machined parts.
Risk factors: fluctuation of raw material prices, lower-than-expected development of industrialization projects, risk investment suggestions for contract performance: as it takes a certain time for the release of the company's production capacity, and there is a significant increase in management and financial expenses, we downgrade the company's 22-year homing net profit forecast of 0.81 gambit to 0.81 trillion yuan (originally predicted to be 142 million yuan). The new 2023 net profit of homing is forecast to be 242 million yuan, corresponding to the forecast of EPS of 0.60max 1.09 and 1.78 yuan. The company's business growth point infrared optics and laser devices belong to the field of new materials. Compared with companies with similar business in the industry, the company's PE in 2022 is 26.9 times.
Taking into account the company's high growth expectations in the field of infrared equipment, the company is valued at 35 times PE in 2022, corresponding to the target price of 38.3 yuan, maintaining a "buy" rating.