Incident: The company released its semi-annual report for 2022, achieving revenue of 168 million yuan (YOY +24.99%), net profit of 27 million yuan (YOY +18.53%), net profit of 22 million yuan (YOY +32.55%) after deducting non-return net profit.
The performance inflection point is evident, and both revenue and net profit have achieved rapid growth. The company achieved revenue of 168 million yuan (YOY +24.99%), net profit of 27 million yuan (YOY +18.53%), net profit after deduction of 22 million yuan (YOY +32.55%). The company's rapid revenue growth has mainly benefited from the continuous recovery in demand in the optical communications market, steady implementation of fund-raising projects, and increased order delivery capacity. Among them, revenue from molded glass aspherical lenses increased significantly over the same period last year. At the same time, the increase in revenue brought about scale effects and cost optimization, and the company achieved rapid growth in net profit after deduction.
Net cash flow from operating activities increased by 68.10% over the same period of the previous year, mainly due to the increase in the company's sales scale and at the same time improving the efficiency of the use of capital and the discounting of some notes.
There was a slight decline in gross margin. The company's gross margin fell 1.83 percentage points from last year and increased by 3.18 percentage points compared to the 2022-Q1 quarter. We estimate that the main reason is that the share of the optical communication business structure in the Q2 quarter increased compared to Q1, and the gross margin of the optical communication business was higher than that of the fiber laser business.
It actively invests in new technology research and development, with R&D expenditure of 13.97 million yuan, accounting for 8.32% of the company's revenue. On the one hand, the company continuously develops high-end, high-performance precision optical component products in the fields of optical communication and fiber lasers based on core technology, and iteratively upgrades related manufacturing processes; on the other hand, the company continues to expand optoelectronic component products and rich related technical reserves in biomedicine, consumer optics, etc.
We have vehicle regulations certification, actively expand the automotive business, and the lidar business is progressing smoothly. Currently, the main customers are lidar companies such as Hesai Technology, Leishen Intelligence, and Suteng Juchuang. The company has the ability to produce a full set of optical components for lidar. The main products are windows, protective covers, reflectors, prisms, etc. The value of some components of the lidar optical path is about 500 to 1,000 yuan per unit, and the lidar market space is about 20 billion yuan, of which the optical part accounts for about 10% of the value.
Currently, it is mainly development orders. Factory inspections for some downstream lidar customers are progressing smoothly, and it is expected that they will be designated by car companies. LiDAR is gradually becoming standard hardware in automobiles. We believe that as automotive intelligence continues to advance, lidar is expected to explode.
Actively expanding the automotive business, the automotive HUD project has passed Bosch certification, and the 3D filter for lidar has entered the sample verification stage. In addition, the company is developing a vehicle lens project.
Actively reserve AR technology and look forward to the future. The company first collaborated with Google to develop Google Glass and entered the AR glasses race track. Currently, it already has technical reserves in fields such as optical waveguide grating and diffraction, and is actively expanding and promoting it to downstream AR glasses manufacturers. The company's large field-of-view two-dimensional waveguide project for AR glasses has been verified, and the holographic diffraction grating project is also in the verification stage.
The company's AR glasses account for 50% of the product value of the whole machine. Currently, it has actively cooperated with many domestic and foreign AR glasses manufacturers in research and development. AR glasses will be released rapidly in the future, and the company's performance will be extremely flexible.
Investment advice. The company is committed to building an optical platform company. The lidar and AR lens business is an important focus. With the expansion of lidar and the explosion of AR glasses, it will bring great performance flexibility to the company. Revenue from 2022 to 2024 is estimated to be 405 million, 559 million, and 732 million, net profit to parent is 70 million, 112 million, and 141 million, and the corresponding PE is 61/38/30.
Keep recommending and give a “buy” rating.
Risk warning: AR business technology development falls short of expectations; competition among downstream fiber laser manufacturers continues to worsen; lidar targeting progress falls short of expectations.