This report is read as follows:
The company relies on the core competence of lithography machine to form the current platform technology layout, optical waveguide, lithography machine, conductive film and other technology accumulation is expected to usher in a new development space in the automotive AR-HUD, AR, photovoltaic industry.
Main points of investment:
Cover for the first time and give an overweight rating. It is predicted that the EPS from 2022 to 2024 will be 0.29,1.01,1.63 yuan. Because the valuation system of optical waveguide and photovoltaic business is different from that of the existing business, we adopt the segment valuation method to give the target market value 11 billion, corresponding to the target price of 42.31 yuan.
Based on lithography technology to meet the new market of AR and photovoltaic. Based on the core technology of lithography machine, the company has formed a platform technology layout: in terms of optical waveguide display technology, the company has signed cooperation agreements with relevant leading customers in the field of automotive HUD applications, and in the field of AR applications, it has also set up a joint venture subsidiary with Gao Wei Electronics to develop related products, which is expected to enter the R & D system of more customers' new products in the future. In the field of photovoltaic, the company actively develops the application of lithography equipment in photovoltaic cell copper plating scheme, as well as the application of metal electrode film in photovoltaic laser transport technology. In the future, the above emerging fields will open up new growth space for the company.
The market is biased against the company and underestimates the development potential brought by its technological capabilities. The market believes that the company's main business profitability is weak, and that its emerging business has not yet entered the profit-cashing period, and does not fully realize the competitiveness brought by the company's technical capabilities. The expansion of photovoltaic business proves the potential of the company to expand new markets based on the existing technology platform. In terms of optical waveguides, the company is a rare enterprise with the ability of design, mold opening and mass production, and its competitiveness is not weaker than that of Wave Optics. Snap Inc bought WaveOptics with a consideration of more than US $500m in 2021, but the current market has not yet valued Sodawig's business in this area.
Catalyst: AR optical waveguide, photovoltaic business research and development, cooperation progress.
Risk hint: emerging business revenue, profit cashing pace is not as expected, the existing main business cost reduction progress is not as expected.
