Author: Youshu team
This article comes from the merger and acquisition of Youshu, the original title "Ten years a hundred times!" The small factory opened in the broken tile house, now even the doorman and cleaning aunt have become tycoons! This financial report is a proper textbook case of business school. "
If I ask you, what is the biggest event about Unicorn this year?
You may say that Meituan declared IPO in Hong Kong stocks, XIAOMI was listed, Ant Financial Services Group was valued at US $150 billion, six major fund companies issued unicorn funds, Wuxi Apptec rose by 17 trading limits, and the market capitalization of Industrial USI once exceeded 400 billion.
But in fact, the popularity of unicorns can be traced back to a rumor in February: eight unicorns will return to A-shares in the form of depositary receipts (CDR).
Of the eight unicorn companies rumored in the market at that time, seven were Internet bigwigs, and now there are absolute traffic giants in their respective segments of the Internet field in China. They are: Baidu, Inc., BABA, Tencent, JD.com, Trip.com, NetEase, Inc, Weibo Corp.
Although the rumor about the CDR list was later denied by all parties, it is worth noting that there was a very special company that was juxtaposed with the seven Internet giants at that time. This company is not an Internet industry or a new economy company in Hong Kong, but a manufacturing company.
Maybe you will say: I'll go, Youjun, a traditional manufacturing company, with wool, it's not sexy at all.
However, if you think so, it will be boring. According to the Bloomberg report, Louis Putterman, a professor at Brown University who specializes in the Chinese economy, wrote: "it is probably one of the most outstanding examples of creating wealth for workers."
As a result of full shareholding and a hundredfold increase in the "decade" since its listing, the company's workshop workers, doormen, canteen cooks and cleaners are all becoming rich.
It's calledSunny Optical Technology (02382.HK)The business it does is: lens. The story about CDR has been denied, but it does not hinder our research on it.
The lens seems to be a traditional thing, but in fact, the field is so extreme that its gross profit margin can be as high as 70% (in this area, a giant in Taiwan called Da Liguang can do this). This gross profit margin can kill a large number of new economy companies.
In fact, when it comes to shots, the history goes back to hundreds of years ago. From the earliest film cameras to today's mobile phone cameras, the technology may have been iterated many times, but only the business of lenses is evergreen. Each of us, almost every day to use mobile phone lens, the use of a wide range of scenes, and even in the future, AR, VR, self-driving and other technologies landing, without its assistance, are extremely difficult to land.
This is an everlasting business, and it is closely related to everyone.
Look directly at the data:
From 2015 to 2017, its operating income was 10.696 billion yuan, 14.612 billion yuan,22.366 billion yuanThe net profits attributable to the shareholders of the parent company are 762 million yuan, 1.271 billion yuan,2.902 billion yuanThe cash flow generated by operating activities is 1.701 billion yuan, 1.616 billion yuan,2.436 billion yuanGross profit margin is 16.49%, 18.34%,21.47%。
Today, its market capitalization has exceeded 150 billion Hong Kong dollars and has become a "ten-year 100-fold share" since it went public. In the car lens market, the market share of this case ranks first in the world for six consecutive years, and ranks second in the world in the field of mobile phone lenses and modules.
Seeing here, there are several questions worth thinking about:
1) what kind of evolutionary logic is the business of lens and photography?
2) the lens industry has evolved to the present, heavily dependent on mobile phone shipments, so in the current decline in mobile phone shipments, what should we look at in the future?
Today, let's start with the case of Sunny Optical to take a look at the investment logic and financial characteristics of the lens business.
01
More than 200 years history of industrial evolution
In 1812, British physicist Ulaston invented the crescent lens-the earliest photographic lens in the world, which opened the history of the lens industry.
At that time, this kind of lens was very simple, with only a crescent-shaped convex lens with a concave face forward, and the maximum relative aperture was only fmax 16, which was placed in front of a dark box and added a piece of glass at the back end, which could be used for imaging.
After the invention of the lens, the photography business has not actually emerged. In 1825, the Frenchman Nieps made a photosensitive copy of a 17th-century Dutch print, which is the earliest photosensitive image that humans can retain, but because the subsequent exposure time is as long as eight hours, this technology has not attracted much attention.
Fourteen years later, in 1839, Daguerre successfully trial-produced a silver version of the camera, directly reducing the exposure time from 8 hours to 20 minutes. Daguerre is a French artist and chemist who is famous for inventing the silver plate photography.
In 1841, the optologist Vogoland invented the first all-metal camera, which installed the world's first mathematically designed photographic lens with a maximum phase aperture of 1VR 3.4. As an industry, the lens finally began to open the way to scale.
In 1849, the 23-year-old German mathematician Carl Kellner founded the Optical Association in Wetzlar and began the development of lenses and microscopes, which was the previous life of Leica. Since then, Leica, Contes, Lulai, Zeiss, Schneider and other German manufacturers have become front-line manufacturers in the lens field.
In October 1888, French film inventor Louis Prince used his own single-lens camera and Eastman Kodak paper film to shoot successively the Landsea Garden scene and a street view of the Leeds Bridge. Since then, the film era ushered in the beginning, the demand for lens began to grow rapidly.
Since then, nearly half a century, Japan's lens industry began to start. Konica, Nikon, Olympus, Minolta, Canon and other manufacturers have been set up one after another and began to chase German manufacturers.
At that time, however, the high-end market in the lens field was still monopolized by German manufacturers. Now, it may be hard for you to imagine that in the 1940s, the shot of "made in japan" was almost synonymous with low-level and inferior quality.
When lenses, cameras and other industries are in full swing overseas, China is still a blank in this field. It was not until 1958 that China made the first camera-Seagull brand 58-I. this camera was copied from the "Leica" Ⅲ B camera produced in Germany in 1938, marking the beginning of the camera industry of our country. At that time, the price once reached a sky-high price of 12000 yuan.
In 1963, Canon launched the world's first autofocus (AF) prototype, causing a sensation in the market. Because it was generally believed that it was impossible to concentrate the AF function entirely on a small camera, through this autofocus camera module, Canon has since broken the hegemony of German manufacturers.
In 1984, Wang Wenjian, a 37-year-old electrical factory worker in Zhejiang Province, founded the second Optical instrument Factory in Yuyao City. This is a small factory set up by several electrical workers in a broken tile house with tens of thousands of yuan borrowed.
At that time, the idea of management was to "blossom more points", and successively developed projects that cater to the market, such as industrial ceramics, switches, fire-fighting equipment, energy-saving lamps, and so on.
In 1985, Wang Wenjian learned a lesson from the bitter experience and focused his enterprise on the camera track in the traditional optical field. Over the next few years, he cooperated with Tianjin camera Company, Jiangxi Guangxue instrument Factory and Hangzhou camera Research Institute to develop cameras.
In 1991, Lin Yaoying, the founder of a worried enterprise in Taiwan, China, with a total capital of only NT $76 million, spent NT $36 million on the introduction of a missile tracking processing machine that needs to be reviewed by the US Department of Defense. This is now the world leader in the field of camera lens.Big Liguang.
Throughout the 1990s, Daliguang was only a contract manufacturer of glass lenses for Nikon and other Japanese camera factories, and mainstream camera glass lens factories such as Canon, Nikon and Carl Zeiss were the dominant players in the lens industry.
Looking back to Zhejiang, in 1994, Wang Wenjian transformed the original Yuyao second Optical instrument Factory into a joint-stock company, clarifying the property right structure and benefit distribution. More than 400 employees, including cooks and cleaners, were given shares.
Immediately after that, it began to use the "Shunyu" firm and changed its name to "Shunyu Group"-- this is today's Hong Kong listed company, Sunny Optical.
In 1995, functional phones represented by Nokia began to be popular around the world, and the demand for mobile cameras soared, and its main supplier JapanKangdaHas become the lens leader of this era.
In 2001, with the introduction of the Sony Group Corp Ericsson K750i, which has a 2 million pixel sensor, integrated autofocus system and xenon flash, mobile phone photography began to be accepted by the public.
In 2004, it was a turning point in the development of Shunyu, began to bind downstream customers, cut into the supply chain of Samsung, Panasonic and other customers, and began to do手Camera module.
Note that binding downstream is an extremely critical thing for upstream manufacturers of mobile phone parts, such as the one that also broke into Motorola's supply chain this year.Big clan laser.
In 2007, Sunny Optical listed on the main board of the Hong Kong Stock Exchange, imported and produced camera modules with COB technology, and the plastic aspheric mold technology was further optimized to improve output efficiency.
However, this year, another big thing happened in the mobile phone industry: Apple Inc launched iphone. Then, the share of functional phones continues to be squeezed by smartphones, and the main application areas of lenses begin to shift to smartphones, while the main supplier of Apple Inc lenses is Taiwan manufacturers:Big Liguang.
At this point, Sunny Optical immediately raised his bet-in 2008, Sunny Optical began to cut into the supply chain of large mobile phone manufacturers through mergers and acquisitions, acquiring a 54.9% stake in South Korea Power Optics and the ability to design and produce high-end mobile phone lenses. to provide products for Nokia and Motorola.
In June 2010, the landmark Iphone4 came out with a 5 million-pixel isight camera and a 300000-pixel front camera with 720p camera on the back. With many photo applications superimposed on the IOS platform, the photo function has become a rigid demand function of the mobile phone.
In 2012, Sunny Optical set up subsidiaries in the United States and South Korea to deepen the research and application of optics, becoming the largest shipments of car lenses in the world, with a market share of 30%. The products are mainly front-looking lenses, rear-looking lenses, look-around lenses, side-looking lenses and inward-looking lenses.
In 2013, Shunyu made another acquisition, acquiring Konica Minolta's mobile lens production base.
Konica, a traditional giant in the lens field, was founded in Tokyo, Japan in 1873 and merged with Minolta in 2003. It is a company that enjoys the world's top optical technology, and through the acquisition of Konica Minolta's lens business, Sunny Optical has officially become a top supplier of mobile camera modules.
In 2014, Shunyu began to lay out a new generation of camera technology.3D imaging, invest in MantiVision Ltd.
In addition to the traditional lens business, Shunyu's optical instruments business has entered the machine vision market in 2015, developing Sapphire processing equipment and factory automation equipment. Machine vision technology can be used in industrial automation (automatic optical inspection), bioscience, retail and other fields. It is a widely used artificial intelligence technology.
In 2016, Huawei launched the Huawei P9, a phone that quickly became popular with 40 million pairs of cameras from Sunny Optical. At the same time, the two major domestic mobile phone manufacturers OPPO and VIVO also began to break out, and the main supplier of their cameras was also Sunny Optical.
At present, the latest technology in the camera field is loaded on the Iphone X released in 2017.3D camera。
The working principle of the 3D camera is very different from the ordinary CMOS image sensor that takes pictures. In essence, the dual camera is a transitional product, because there is no depth information, we can only rely on the algorithm to calculate, while 3D imaging on the basis of two-dimensional, to achieve the superposition of pixel depth of field, while taking pictures can record the three-dimensional information of the object.
In early 2018, director Peter Chan shot a touching short film "three minutes" with Iphone X, which is a milestone in the history of mobile phone photography.
Combing down, Sunny Optical's development process mainly stepped on three nodes:
1）Shrink the scope of main business and focus on the field of optics
2）Deeply bound with downstream major customers
3）Through and purchase core technology + cut into the supply chain of major customers such as Apple Inc
2
Mobile phone camera is also a good business.
Sunny Optical, founded in 1984, was a family-owned enterprise at first. When the share restructuring was completed in 1994, Wang Wenjian made all the employees registered at that time shareholders, and Wang Wenjian held only 7.68% of the shares.
Looking directly at the data: from 2015 to 2017, its operating income was 10.696 billion yuan, 14.612 billion yuan,22.366 billion yuanThe net profits attributable to the shareholders of the parent company are 762 million yuan, 1.271 billion yuan,2.902 billion yuanThe cash flow generated by operating activities is 1.701 billion yuan, 1.616 billion yuan,2.436 billion yuanGross profit margin is 16.49%, 18.34%,21.47%。
Sunny Optical's main products are: optoelectronic products, optical parts and optical instruments.
These three categories of products can also be subdivided into:
1. Optoelectronic products: mobile phone camera modules, 3D optoelectronic products, security cameras and other optoelectronic modules
two。 Optical parts: glass spherical and aspherical lenses, flat products, mobile phone lenses, car lenses and other lenses
3. Optical instruments: microscopes and optical measuring instruments
Note that the contribution of optoelectronic products to the company's operating income is increasing year by year. In 2017, optoelectronic products accounted for 79.45% of total revenue, optical parts accounted for 19%, and optical instruments accounted for 1.31%.
The first kind of product is the finished camera module, and the second kind of product is the separate lens. More than 80% of its income comes from mobile phone lenses and modules. The data can be seen that the prosperity of the mobile phone industry has an impact on it.
For the breakdown of gross profit margin from 2015 to 2017, optoelectronic products are 9.6%, 10.5% and 13.1%, optical parts are 35.1%, 39.8% and 44%, and optical instruments are 37.5%, 40.4% and 43.2%. Gross profit margins for all three types of products have increased since 2015.
But seeing this set of data, I wonder if you have any questions in mind: Sunny Optical's biggest business is camera module, how can the gross profit margin be so low?
Answer: because Shunyu does not produce all the parts of the camera module.
The whole mobile camera industry can be roughly divided into: parts-closed testing-mobile phones, Shunyu is located in the second ring of the closed test link.
Module packaging, need to purchase all kinds of parts, roughly divided into five parts: lens, voice coil motor, infrared filter, CMOS sensor, image processor chip. Among them, only the lens is supplied by Shunyu, and the others are purchased, so it can be seen that its strategy in this business is to focus on the lens business that it is good at, while other parts can be purchased externally.
The process of Shunyu's business is roughly divided into four steps:
Research and development of camera technology-procurement of other parts-closed testing-sales. Let's analyze the core elements of this business one by one.
3
Technology is the core element.
The working principle of the camera module is simply: optical signal-electrical signal-digital signal-image.
When you take a picture of your girlfriend with your mobile phone, the process basically goes like this: your girlfriend reflects light and is collected by the lens, and the light signal is converted into an electrical signal through an image sensor (CMOS/CCD), which is then converted into a digital signal after analog-to-digital conversion. The digital signal is processed by the chip, and then sent to the mobile phone processor, and finally converted into an image that can be seen on the phone screen.
You may use the camera function on your phone every day, but you may not necessarily delve into the process behind it:
The camera industry is a typical business that relies on downstream applications. With the switching of downstream end products (such as mobile phones), large-scale iterations will occur, thus, the industry leader will also change.
In the era of traditional cameras, German manufacturers dominated the world; in the era of miniature cameras and functional mobile phones, Japanese manufacturers dominated the market; and in the era of smartphones, Chinese manufacturers began to take the throne.
Understand the working principle of mobile phone photography, next, let's borrow the camera module, which is the carrier module of the mobile phone photography function. It consists of five parts: lens, voice coil motor, infrared filter, photosensitive chip and circuit board.
Camera module, the value chain distribution of several components is roughly as follows:
1. Photosensitive chip (CMOS/CCD), accounting for about 50% of the value of the whole module.
2. The lens accounts for about 20% of the value of the whole module.
3. Filter, voice coil motor and FPC account for about 10% and 15% of the value of the whole module.
4. Package, accounting for about 15% and 20% of the value of the module.
In terms of photosensitive chips with the largest distribution of value, most of the market share in the industry is occupied by Sony Group Corp (35%), the second largest is Samsung (19%), and the third largest is Howie Technology (12%).
It is worth mentioning that Howie Technology was bought by Chinese consortia. According to the China Securities News, Beijing Junzheng, Weir shares and Wentai Technology have all attacked Howwe before, but they all failed. Not long ago, Weir shares issued another major asset restructuring and suspension announcement, saying that the company was planning to acquire a stake in Beijing Haowei Technology Co., Ltd.
However, it should be noted that although the photosensitive chip is of high value, it follows Moore's law, and the technology iteration is also very fast. Next, two areas where the distribution of value is relatively high and the technical iteration is relatively slow is the track in this case:Closed test和The camera.
Let's take a look at the camera:
The lens mainly determines the definition of the picture (clarity, light, near and far), as well as the display range of the image, as well as the highest pixels supported by the hardware. The quality standards of lens include focal length, field of view angle, aperture, distortion, relative illuminance, resolution and so on.
Affected by pixels, specifications, standards and other factors, the lens can be divided into 4p, 5p and 6p. Now 7p big factory (Da Liguang, Sunny Optical) has also been successfully developed, which is mainly composed of lens, spacer (spacer ring), pressure ring and lens tube.
The absolute market position in this industry is Daliguang of Taiwan, which has the largest market share of mobile phone lenses (39% market share). It is not only the main supplier of Apple Inc mobile phone lenses, but also has a high share in Android models. Due to the quality and yield of the lens, Dali's gross profit margin can be as high as 70%.
You see, although it is a manufacturing company, in fact, this gross profit has exceeded many TMT and new economy enterprises.
Its painting style goes like this:
Sunny Optical has a late start and a market share.13%It is the second largest company in the industry, with a gross margin of more than 40%. Shunyu's cameras are mostly used in mid-and high-end Android phones.
Liguang's products are mainly concentrated in the field of high-resolution lenses, wide-angle lenses and large-aperture lenses above 16MP (MP). They are suitable for high-end models and account for 80 per cent of total shipments.
Due to the customer base (middle and high end), Sunny Optical's market share of 10MP + lenses is lower than that of Liguang, but shipments of products with more than 10 megapixels have increased significantly in 2017 compared with 2016, from 28.9% to about 47.6%.
What I said above are all technical details, which may seem like a headache, but it is these technical details that determine the nature of this business, even if it is a headache.
The embodiment of these technical details is a subject in the financial statements:Research and development expenses。
Compare the research and development of Shunyu and Dali in 2015-2017:
Sunny Optical's R & D expenses are 502 million yuan, 694 million yuan and 1.168 billion yuan, accounting for 4.69%, 4.75% and 5.22% of operating income.
The R & D expenses of Dali Light are 554 million yuan, 559 million yuan and 702 million yuan, accounting for 4.63%, 5.40% and 6.17% of the operating income.
Sunny Optical's R & D spending has gradually increased since it exceeded Dali's for the first time in 2016, with R & D spending 66.38% higher than Dali's in 2017.
Let's compare some A-share companies and take a look at the R & D of several other companies in the industry:
Among them, Oufei Technology and Sunny Optical's R & D expenditure accounted for a relatively high proportion of income, accounting for 5.2% of the income in 2017. Compared with the full expenditure of Sunny Optical's R & D expenses, Oufei Technology capitalized 23.66% of the expenditure.
At present, the technical focus of all breakthroughs in the field of camera modules is 3D imaging.
At present, there are about three kinds of mainstream 3D machine vision used in the industry:Structured light, TOF time light, binocular stereo imaging.
Among the three technologies, structured light is the mainstream of mobile camera applications. The 3D front-facing camera (face recognition) used on Iphone X, which represents the company PrimeSense, has been acquired by Apple Inc. TOF technology is used in machine vision.
(photo Source: Huaqiang Microelectronics)
4
The voice of the giant in the industrial chain
As Sunny Optical's final product form is mainly the camera module, so after the development of the lens, it also needs to purchase other components in order to enter the next module closed test.
These components include:Voice coil motor, infrared filter, photosensitive chip, circuit board.
Among them, the representative suppliers of infrared filters are: Crystal Optoelectronics, Optoelectronics, Tanaka Extruder.
Representative suppliers of voice coil motors are: Japan TDK Co., Ltd., Japan Mitsumi Motor, South Korea Jahwa Zhonglan, Sanmeida
The representative companies of photosensitive chips are: Sony Group Corp, Samsung, Howie Technology, Texas Instruments Inc, Microcore Technology.
At present, the three largest markets in the closed test runway are:Sunny Optical Technology, Oufei Technology and Foxconn.There are also two other companies in the second echelon: Qiu Ti Technology and Xinli International.
The right to say when purchasing spare parts is mainly reflected in the accounts payable in the financial report. In 2015-2017, Sunny Optical's accounts payable were 2.442 billion yuan, 2.876 billion yuan and 4.449 billion yuan, accounting for 27.34%, 24.1% and 25.33% of operating costs, and the turnover days of accounts payable were 85 days, 141 days and 94 days.
In 2017, Sunny Optical's largest suppliers accounted for 24% of the total procurement volume, while the top five suppliers accounted for 62.1% of the total procurement volume, a certain concentration trend compared with 60.3% in 2016.
You can understand what this data is like by looking at the figures in the same industry.
Since none of Foxconn's A-share and Hong Kong-listed companies disclosed the business of mobile camera modules, they did not join the comparison.
Ofei technologyAccounts payable are 4.279 billion yuan, 7.103 billion yuan and 8.206 billion yuan, accounting for 26.54%, 30% and 28.16% of operating costs, and the turnover days of accounts payable are 86.78 days, 86.53 days and 94.56 days.
The accounts payable of Qiu Ti Technology are 548 million yuan, 2.055 billion yuan and 1.882 billion yuan, accounting for 27.93%, 44.98% and 26.67% of operating costs, and the turnover days payable are 78 days, 118 days and 130 days.
At first glance, Qiu Ti Technology has the strongest voice in the industry, but note that looking at this data alone is not enough to explain the problem. With high accounts payable, there is another possibility: no money. This kind of situation is typical of what we have analyzed before.Jianrui Vornen。
In may 2018, Qiu titanium technology issued a profit warning that its profit in the first half of 2018 could fall 50% from a year earlier.
The reason for its sharp decline is the price war caused by the decline in mobile phone shipments, in which second-tier manufacturers find it difficult to compete with first-tier manufacturers.
5
Different processes and different production capacity
After all the parts have been purchased, what shall we do next? Encapsulation, testing. This part needs to rely on a large number of machines and equipment.
At present, there are three mainstream processes for mobile camera packaging on this track, namely: CSP technology (Chip Size Package), COB technology (Chip On Board) and FC (Flip Chip) technology.
CSP encapsulation-- the advantages are low cost of process equipment and short time consumption, while disadvantages are poor light penetration, high cost of single module, high thickness, and easy to appear backlight penetration ghost phenomenon.
COB encapsulation-- the packaging technology that carries the chip directly on the PCB has a high cost of manufacturing equipment. The cost of a production line is about 10 million yuan, but the packaging cost is low and the thickness of the resulting module is relatively thin. Because COB packaging must be carried out in a dust-free environment, and there are certain requirements for worker experience, so the yield varies greatly, and the manufacturing time is longer.
FC encapsulationAlso known as flip chip, the cost of manufacturing equipment is the highest. The cost of a FC process production line is 1.3 to 1.5 times that of the COB process production line, but the yield is more stable and less dependent on people.
At present, FC technology is mainly used in Apple Inc products, on behalf of the company for our previous study of Foxconn, the financial performance of higher fixed assets.
COB technology is mainly used in middle and high-end Android models, and the main closed test manufacturers are Sunny Optical, Oufei Technology, Qiu Titanium Technology, Xinli International and so on.
Let's take a look at the fixed assets of Shunyu, Oufei and Qiu Ti, the three COB process manufacturers:
In 2015-2017, Sunny Optical's fixed assets were 1.141 billion yuan, 1.794 billion yuan and 2.586 billion yuan, accounting for 14.94%, 15.41% and 16.44% of the total assets. The revenue that the unit fixed assets can bring is 0.67, 0.71, 1.12.
The fixed assets of Ofei Technology are 3.887 billion yuan, 5.019 billion yuan and 8.367 billion yuan, accounting for 24.19%, 21.42% and 27.13% of the total assets. The revenue that the unit fixed assets can bring is 0.12, 0.14 and 0.1.
Note that the fixed assets of Oufei Technology are much larger than those of Sunny Optical, but the efficiency of fixed assets is significantly lower than that of Sunny Optical.
Here is a question for you to think about:
The same equipment, the same process, almost the same customers, why is there such an obvious gap? Is it the effect of depreciation of fixed assets?
Comparing the depreciation policies of the two enterprises, because the closed test enterprises are characterized by the fact that machinery and equipment account for more than 60% of fixed assets, so they focus on the depreciation of machinery and equipment.
Let's first take a look at Sunny Optical:
Let's take a look at Ofei Technology:
In comparison, Sunny Optical's depreciation policy is indeed more conservative, machinery and equipment depreciation life of 5-10 years, and do not set salvage value-but this difference is not enough to lead to such a large efficiency gap in fixed assets.
So, think about it, think about it, what other factors might affect the data here?
6
Key indicators of mass production
To understand this problem, you have to look at the operator of fixed assets: employees.
As of 2017, Shunyu had a total of 28540 employees, who generated 22.366 billion yuan in income and 2.902 billion yuan in net profit. In 2017, Sunny Optical employees generated per capita revenue of 783700 yuan and per capita net profit.101700 yuan。
By comparison, as of 2017, Ofei Technology had a total of 41826 employees in Europe and Africa, generating 33.791 billion yuan in income and 821 million yuan in net profit. In 2017, European and African science and technology generated 807900 yuan in revenue per capita and net profit per capita.19600 yuan。
Note that in terms of per capita income, there is little difference between the two. Ofei Technology is slightly higher, but in terms of per capita profit, Sunny Optical is Ofei Technology.5.19倍。
What is the concept of this data, that is to say, the same 10-yuan order is given to an employee, assuming that Sunny Optical's employees can earn 5 yuan for the company, while Ofei technology employees can only earn 1 yuan for the company.
This huge gap comes from a key process index:Defective rate。
In fact, no matter the lens or the closed test under the COB process, there will be some bad products. In the case of large-scale production, the level of defect rate directly determines the industry status of a company.
First look at the lens production-mobile phone lenses are generally made of plastic lenses. Plastic lenses are molded by injection molding machine. Lens assembly needs to combine multiple lenses as thin as 0.2mm into a lens group (which cannot be deformed or cracked). Only relying on equipment and theoretical solutions, high-quality lenses cannot be made in large quantities. Therefore, we need to pay attention to one key element:The accumulation of artificial experience is a very, very important factor.
Then look at COB packaging-in the process of packaging, it involves multiple assemblies of image sensors, mirror holders, motors, lenses, circuit boards and other spare parts. Traditional packaging equipment, such as CSP and COB, all carry out mobile assembly of spare parts according to the parameters adjusted by the equipment.
Therefore, the superposition tolerance of spare parts is getting larger and larger, and the final effect on the camera is that the clearest position of the picture may deviate from the center of the picture, the definition of the four corners is uneven, and so on.
Therefore, in this field, the AA process equipment (automatic alignment) is produced. When each part is assembled, the equipment will detect the semi-finished product being assembled, and actively align it according to the actual situation of the semi-finished product to be assembled, and then assemble the next part in place.
Note that in these two links, the technical strength, as well as the management details of the internal mechanism, willThe rate of processed products has a great influence.. therefore,Rate of processed productsIt directly determines the product grade and profit level of the manufacturer.
Therefore, in this case, it is very important to optimize the equipment and technology, the management of front-line workers, the benefit distribution mechanism and the incentive mechanism.
We can't get the details of its internal management, but we can get a glimpse of the detailed arrangement of equity allocation. Sunny Optical's approach is: stock ownership by all employees.
Sunny Optical's share price has soared more than 9500% since it went public in June 2008, with some laughing that even Shunyu's security chef is a millionaire. Because, as early as 1994, when the restructuring, Shunyu began to grant equity to all employees. In 2010, Sunny Optical again offered 10 per cent equity as an employee equity incentive.
By contrast, although Oufei Technology has also launched seven employee stock ownership plans, equity incentives are aimed at Dong Jiangao and employees of subordinate subsidiaries above a certain level.
In Shunyu, ordinary employees on the production line, and even cleaners and cooks all hold shares, from this detail, we can also see its management and incentive mechanism.
7
Downstream capital pressure transmission
▼
For Oufei Technology and Sunny Optical, there is another important detail on the financial statements that must be paid attention to, which is directly related to sales revenue-accounts receivable.
For the camera track, even if it is one of the top giants, accounts receivable will still be a large number. Why? Because, such as Apple Inc, XIAOMI, Huawei and other downstream terminal manufacturers have a very strong voice, arrears is naturally a common practice in the industry. So, what should we do? Only through the above study, in the form of accounts payable, the financial pressure can be transferred to the upstream.
Come on, let's take a look at the financial pressure downstream:
In 2015-2017, Sunny Optical's accounts receivable were 3.003 billion yuan, 3.716 billion yuan,5.666 billion yuan, accounting for 22.83%, 19.68%,19.89%The turnover days of accounts receivable are 83 days, 72 days,73天. 98.99% of Sunny Optical's accounts receivable are within 90 days.
The accounts receivable of Ofei Technology are: 4.905 billion yuan, 7.758 billion yuan,7.506 billion yuan, accounting for 26.51% and 29.01% of operating income.、22.21%The turnover days of accounts receivable are 80.56 days, 85.22 days,81.31天87.28% of Ofei's accounts receivable are within 6 months.
From the point of view of account turnover, Sunny Optical has faster technology, a relatively smaller share and a stronger say than Ofei.
In addition, since accounts receivable is mentioned, we must pay attention to the provision of bad debts.
In this case, the closed test is mainly used in Huawei,OPPO 、 Vivo 、 XIAOMIBy comparison, Ofei Technology, its downstream customers are mainlyHuawei, Lenovo, Jin Li, XIAOMI等。
Shunyu's trade receivables totaled 4.546 billion yuan, accounting for 96.85 million of bad debts, accounting for 2.13%. With
Ofei Technology does not make provision for bad debts for accounts less than 6 months old (accounting for 87.28% of the total account).
However, note that Jinli, one of the downstream customers of Ofei Technology, has a cash flow problem.
In the 2017 report, there were two separate provisions for bad debts, of which an account of 455 million yuan was not expected to be fully recovered due to the other party's financial difficulties, accounting for 48 per cent of the bad debts. For another account of 436 million yuan, the proportion of bad debts is 53.53%.
On April 2, 2018, Jin Li issued a "statement on the current situation of Jinli Industrial Park" in the official Weibo Corp, acknowledging that Jinli has debt problems and adopting the plan of layoffs and reducing costs to attract capital to protect production. Jin Li said in the information note that in the future Jinli Industrial Park will retain about 50% of its employees to continue production to ensure the normal operation of the production line.
As of Feb. 6, 2018, the balance of its accounts receivable to Jinli was 626 million yuan, according to Oufei Technology's response to inquiries from the exchange. Due to the tight capital chain of Jinli, the company's accounts receivable in Jinli have been overdue for more than two months and have stopped shipping to Jinli. (we need to pay attention to the risk of bad debts in the future.)
By contrast, Sunny Optical, whose downstream mobile phone manufacturers Huawei, OPPO, VIVO and XIAOMI are bound, is basically stable despite the current decline in domestic mobile phone shipments.
Finally, combined with its pressure to transfer accounts payable upstream, taking a comprehensive look at the cash flow days of the two closed test manufacturers, one picture is worth a thousand words:
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Going through the industrial chain of double kill and reshuffle.
In the smartphone industry chain, the biggest keyword at present is 5G, and the other is the decline in the growth rate of mobile phone shipments. The growth rate of global mobile phone sales fell by 5% in 2017 compared with 2016, while total smartphone shipments in China in the first quarter of 2018 were 81.37 million, down 26.1% from the same period last year. Major players (except Apple Inc) began to fight a price war, and the market pattern was surging undercurrent.
Taking Apple Inc's mobile phone as an example, the following picture shows the Iphone 8 disassembly report released by IHS. The total BOM (bill of materials) is worth US $247.51, of which the three most expensive parts are:
As can be seen in the picture:
1. The most expensive material is the display panel, which costs $52.50
2. The second most expensive materials are housings and circuit board structures, with a total value of US $50.95
3. The third most expensive material is the camera module, which is worth $32.50.
IPhone's OLED screen and DRAM are supplied by Samsung, and there are many PCB suppliers, including AT&S, Huatong computer, TTM, Xinxing, Zhending, ibiden, Taijun Technology, Fujikura, Sumitomo Motor, Interflex, NOK, M-Flex and so on.
In this case, we focus on the camera module industry. At present, the mobile camera configuration has been based onDual camerasFor the mainstream. The technical requirements of the double photography for the module are greatly increased.
From the perspective of the industry chain of mobile cameras:
Upstream, mainly accessories manufacturers:
Lens-Dali Optics, Sunny Optical, Yujing Optoelectronics, Shikoda, Koryo Optics, DIOSTECH
Voice coil motor-Alps, Sanmei, TDK, magnetization, Samsung Motor, New thinking, Bi Lu, Hysonic
Infrared filter-Ofei Light, Crystal Optoelectronics, Harwitt, Tanaka Technical Research, Crystal Pole Optoelectronics
Photosensitive chips-Sony Group Corp, Samsung, Howie Technology, on Semet, Canon, Texas Instruments Inc, Freescale, Microcore Technology
In the middle reaches, mainly closed test vendors:
Packaging-Sunny Optical, Oufeiguang, Foxconn, Qiu Titanium Technology, Xinli International
Downstream, mainly the whole machine factory:
Mobile phones-Samsung, Apple Inc, Huawei, OPPO, XIAOMI
Computers-Lenovo, HP, Dell, ASUS, Apple
Let's choose several companies in the camera industry chain to make a comparison:
1) racetrack
Sunny Optical: lens + camera module package (87%)
Ofei Light: camera module package (49.54%), touch screen (33.62%)
Crystal optoelectronics: precision optoelectronic thin film components (80.52%)
Qiu Ti Technology: camera module package (100%)
Xinli International: camera module package is included in consumer electronics (27.25%)
2) Market share
3) downstream key customers
Sunny Optical: Huawei, OPPO, Vivo, XIAOMI, etc.
Oufeiguang: Huawei, Lenovo, Jin Li, XIAOMI, etc.
Crystal Optoelectronics: Sunny Optical, Oufeiguang and other closed test manufacturers
Qiu Ti Technology: Huawei, Oppo, Vivo, XIAOMI, Lenovo, Meizu, ZTE
Xinli International: Huawei, Oppo, Vivo, XIAOMI, Lenovo, Meizu, Letv
4) performance scale
5) profitability
Sunny Optical's ROE was the highest among the three, reaching 46.86% in 2017, up 17.74% from last year, mainly due to an increase in net profit from sales.
To sum up, the logic of this report is as follows:
1) in the whole smartphone industry, taking Apple Inc's mobile phone as the dismantling objectThe three most expensive parts are:Display panel (21.21%), circuit board (20.59%), camera module (13.13%). This research report studies the racing track of the camera module.
2) camera moduleIndustry chainIt can be divided into five links: photosensitive chip, lens, filter, voice coil motor and packaging, among which chips, lenses and packaging account for 85% to 90% of the value chain.
3) sort by value distributionPhotosensitive chip > lens > packageAt about 5:2:2, at present, there is no representative company in China in the field of photosensitive chips, the representative companies in the lens field are Dali Optoelectronics and Sunny Optical Technology, and the representative companies in the packaging field are Foxconn, Sunny Optical Technology, Oufei Technology.
4) Sunny Optical, who is involved in this case, is on the two tracks of camera and encapsulation. From the perspective of the value chain, Liguang, the number one in the global lens field, only makes lenses, Foxconn, Ofei Technology and Qiu Ti Technology only do packaging, and only Sunny Optical contains two links at the same time, and they are all giants with the head of market share.
5) the future revenue driver of the camera company depends on two areas.One is the volume of mobile phone shipments, and the other is the change of lens function.
6）Mobile phone shipmentsOn the other hand, the growth rate in 2017 is 5% lower than that in 2016. at present, the growth of smartphone demand is slowing down. In the years of iterative transition of 4G-5G communication technology (2018-2020), mobile phone shipments are bound to be under pressure, and companies in the industry chain will encounter a wave of valuation and performance double kill. However, killing valuation and performance is not a bad thing, on the one hand, it provides opportunities for adjustment, on the other hand, it will also lead to further concentration of the industry, which is more beneficial to the head company. Take Qiu titanium technology, Xinli and so on as an example, the business in this area has shrunk to a certain extent.
7) although the growth rate of mobile phone shipments has slowed down,Optical applicationThis business will continue to grow in mobile phones and many other areas (such as car lenses and VRAR lenses). At present, in the field of mobile phones, from single camera to double camera to triple camera and 3D camera, at the same time, for the cameraTechnical requirementsHigher and higher, the relative aperture from the original F2.0, to now 1.5, or even 1.4, the demand for high-end optical modules, there will be higher added value, will to some extent offset the decline in mobile phone shipments. And even if mobile phone shipments decline, performance may not be greatly affected.
8) 5G will start large-scale commercial use from 2020, each timecommunications technologyThe innovation, accompanied by large-scale iterations of terminal devices, mobile phone shipments are currently declining in the short term, but will usher in a new improvement in the 5G era. At the same time, in the 5G era, 3D lens is a highly deterministic technology trend, VR, AR, machine vision, self-driving and other concepts all need to rely on 3D cameras to land.
9) from the point of view of valuation, prompt the followingRisk factors.PE (TTM), Oufei Technology 47.21X, Crystal Optoelectronics 30.38X, Sunny Optical 46.11X, Qiu Ti Technology 14.31X, Xinli International 393.96X based on the closing price of June 22nd. The valuation of this case is high or low. I believe you will have your own judgment after reading the data. We are only responsible for fundamental research, not your trading system. Follow-up thinking needs to be done on your own.
9
In addition to this case, you need to learn
In the process of China's capital market
Typical financial magic
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