Events:
The company released its semi-annual report for 2021 on August 30, 2021: the operating income in the first half of the year was 1.97 billion yuan, an increase of 4.22% over the same period last year; the net profit was 152 million yuan, an increase of 21.13% over the same period last year; and the net profit was 141 million yuan, an increase of 36.79% over the same period last year.
Comments:
The business line has maintained steady growth, and the effect of industrial upgrading has appeared. The company's intelligent controller business achieved revenue of 1.001 billion yuan, an increase of 62.81% over the same period last year, and net profit increased by 90.64% over the same period last year. The revenue of the backlight business reached 536 million yuan, down 18.56% from the same period last year, mainly caused by the shortage of semiconductor chips and the US crackdown on key domestic mobile phone industry chain enterprises. In the second half of the year, it focused on new energy vehicles, industrial control instruments and other fields, forming new business growth points. Optoelectronic communications and intelligent equipment cable and metal materials business transformation and upgrading, including cable business and Japan's KALTECH company orders doubled, the proportion of overseas market business increased significantly.
Breakthroughs have been made in laser and superconducting business, followed by military microelectronics, and the pace of industrialization is closely linked. The company put forward for the first time in the performance report that "the laser industry has rapidly achieved the breakthrough and delivery of key technologies for the industrialization of 400W high-power pump sources, and the first generation of new laser equipment has been developed, successfully intercepting the predetermined target, and is about to be converted to production". This also marks the successful expansion of the company from the core device pump source to a complete set of laser equipment. Combined with Zhongjiu Optoelectronics recently passed the examination of the State Administration of Science, Technology and Industry for National Defense, and obtained the qualification of scientific research and production of weapons and equipment, it is expected that the company's laser plate has entered a period of rapid release of performance, and will successfully card the special laser track to strengthen the first-mover advantage. The company's superconducting business has entered the initial stage of full industrialization, Nanshan Aluminum trial equipment has been formally integrated, and many new superconducting applications have been carried out in an orderly manner, such as superconducting magnetic separation research and development, heavy metal sewage treatment, magnetic pull crystal growth furnace, controllable nuclear fusion and so on. The company is also active in the layout of MEMS sensor field, through technical cooperation with scientific research institutes, the establishment of MEMS sensor research and development center, the formation of achievements transformation platform and external sales window, considering that the company has rich experience in technology transformation and industrial landing, it is optimistic that MEMS sensor will become a new performance growth point of the company.
Investment suggestion: we forecast that the company's operating income from 2021 to 2023 will be 47.56pm 62.62max 79.04 yuan respectively, and the net profit returned to its mother will be 4.43pm 5.79pm RMB856 million, respectively, corresponding to EPS 0.97 pm 1.27max 1.88 RMB, corresponding to PE34.14/26.16/17.69X, maintaining the "buy" rating.
Risk hints: the industrialization of superconducting equipment is not as expected, the competition in the LED market is intensified, and the epidemic situation is repeated.
