Half-year report of Fujing Science and Technology 2022: in the first half of 2022, the company realized operating income of 393 million yuan, an increase of 11.48% over the same period last year, and realized a net profit of 119 million yuan, an increase of 17.33% over the same period last year. The net profit after deduction was 114 million yuan, an increase of 15.81%.
Main points of investment
A steady increase in profitability
In the first half of 2022, due to the influence of the epidemic, there was a certain underoperation rate in the downstream terminal application enterprises, and the company's crystal components business was affected by the slowdown in domestic market demand. In terms of business segmentation, the company's revenue from nonlinear optical crystals is 105 million yuan (year-on-year); laser crystal revenue is 67 million yuan (year-on-year + 28.37%); and revenue from precision optical components is 132 million yuan (year-on-year + 21.73%). The revenue of laser devices is 77 million yuan (+ 13.24% compared with the same period last year), of which the increase in revenue from laser crystals, laser devices and precision optical components is mainly due to the company's development in the field of optical communication and optical components of high-power continuous fiber lasers. In terms of gross profit margin, 2022H1 achieved a gross profit margin of 56.31%, an increase of 0.46pct over the same period last year, in which the gross profit margin of laser devices was affected by factors such as the rise of raw materials and market price competition, and the gross profit margin decreased by 13.38pct compared with the same period last year. In terms of expenses, the rates of sales, management, finance and R & D expenses of 2022H1 were 1.59%, 11.76%,-1.91% and 7.88% respectively, of which sales expenses increased by 31.46% compared with the same period last year, mainly due to increases in salary, advertising, insurance and sales service fees.
Nonlinear optical crystal has a stable leading position and continues to open up new applications in the field of laser.
With the continuous advancement of high-end manufacturing technology, the application scene of laser technology continues to expand, and the demand for laser equipment continues to grow. According to Laser Focus World, global laser sales increased from US $13.77 billion in 2017 to US $18.48 billion in 2021, with an average annual compound growth rate of 7.63%. The size of China's laser market grew from US $6.95 billion in 2017 to US $12.9 billion in 2021, with an average annual compound growth rate of 16.72%.
The company has the world's largest production base of LBO, BBO crystals and their components, and has the world's first market share in the field of nonlinear optical crystals. While maintaining its leading position in nonlinear optical crystals, the company continues to increase its research and development, broaden its product line, and develop steadily in various business lines. among them, precision optical business not only consolidates and promotes laser optics and communication optical products, but also lays out the emerging market for high-end optical components. In the laser device business, the acousto-optic devices, magneto-optic devices and other device products independently developed by the company have been recognized by customers of ultraviolet laser, fiber laser and ultra-fast laser and are supplied in batches. some device products break the monopoly of foreign manufacturers and achieve domestic substitution. With the enrichment and improvement of the product system, the company has gradually become one of the leading suppliers in the industry that can provide laser customers with "crystal + optical elements + laser devices" one-stop integrated services, and has accumulated rich customer resources, and its products have been widely used by domestic and foreign well-known laser companies, such as coherence, spectral physics, fast, IPG, Lumentum, big laser, Yingnuo laser, Ruike laser, Jepter and so on.
We believe that while stabilizing the leading position of nonlinear optical crystals, the company is actively exploring new application fields of products, making continuous efforts in the fields of optical communications, AR, lidar, semiconductor equipment, optical testing equipment, analytical instruments and scientific research, and the comprehensive competitiveness is expected to be further enhanced.
Profit forecast
It is predicted that the income of the company from 2022 to 2024 is 8.82,11.08,1.378 billion yuan respectively, and the EPS is 0.52,0.62,0.74 yuan respectively, and the current stock price corresponding to PE is 36,30,25 times respectively, maintaining the "buy" investment rating.
Risk hint
The lower-than-expected risk of demand in downstream application areas, the risk of intensified market competition, the risk of rising prices of raw materials, and the risk of exchange rate fluctuations.
