The target price is 23.9 yuan per share, which is rated as "better than the market" for the first time. We forecast that the company's annual homing net profit in 22-23-24 will be 292q371 million yuan respectively, with a year-on-year growth rate of 21%, 26% and 27% respectively. Although it was affected by macro uncertainty in 22 years, thanks to the steady growth of overseas demand and the company's forward-looking layout in the upstream of high-power fiber lasers, the company still achieved 11.25% revenue growth and 16.35% homing profit growth in the first three quarters. We give the company 35 times PE (23 years) to reflect: 1) as the macro gradually stabilizes, the company's business is expected to achieve restorative growth in 23 years; 2) the company has the potential expectation of creating a new growth pole through the establishment of a wholly-owned subsidiary, "Expiration Photon". To sum up, the company's target price is 23.9 yuan per share, giving it a "better than the market" rating for the first time.
The company is a global LBO, BBO crystal leading enterprises, 20 years through the vehicle specification level certification (IATF16949). Since the 1960s, China's ability of R & D and innovation of nonlinear optical crystals has been continuously enhanced, and many new types of nonlinear optical crystals have been independently developed and produced, such as BBO and LBO crystals developed by Fujian Institute of material structure, Chinese Academy of Sciences (Fujian Institute of physical structure, formerly known as "East China Institute of material structure, Chinese Academy of Sciences"), which have basically achieved large-scale production. Founded by Fujian Institute of physical structure in 1990, the company is a representative enterprise in China's nonlinear optical crystal industry. At present, it has developed into a world-renowned nonlinear optical crystal supplier. According to our estimation, its share in LBO and BBO in the global market is about 80% in 2021. At present, the company has expanded its business to the R & D, production and sales of nonlinear optical crystals, laser crystals, precision optical elements and laser devices. The products are widely used in laser, optical communication, semiconductors, AR/VR, life sciences, self-driving, detection and analysis instruments and many other industrial fields. Customers are mainly coherent, spectral physics, fast, IPG, Lumentum, Ennai, big laser, Yingnuo laser, Yinggu laser, Huari laser, Ruike laser, Chuangxin laser, Jepter and other well-known laser companies at home and abroad.
The company passed the IATF16949 automobile quality management system certification in 2020.
The growth of the traditional main business is steady, and a new wholly-owned subsidiary "due Photon" is set up to create a new growth pole. The steady increase in global demand for solid-state lasers has driven the market growth rate of monolithic crystal components to an average of 15-30%. Thanks to the expansion of high-power fiber lasers, optical communications and optical applications in emerging markets, the "laser + precision optical components" market is still in a period of rapid growth. The company recently established a wholly-owned subsidiary, "due Photon". We believe that with the comprehensive capabilities of the core components upstream of the laser, rich customers and resource advantages, the company is expected to further optimize the layout of products and business, and then create a new growth pole. the follow-up progress is worth looking forward to.
Risk tips: 1) the recovery of the laser market is not as expected; 2) customer expansion is not as expected; 3) excessive competition in the industry.
