Report summary:

Precision optical devices have been accumulated over many years, and IPO fundraising has helped continue to grow. Maolai Optics focuses on the R&D and marketing of precision optical devices, optical lenses and optical systems, providing integrated solutions for “light, mechanics, electricity and computing”. Currently, the company has optical design capabilities covering the ultraviolet to infrared spectral range, high-precision optical device manufacturing capabilities, multivariate active adjustment capabilities for optical lenses and systems, and vertical integration capabilities for optical systems. The company's products are used in a wide range of fields, including semiconductor equipment, life science and medicine, aerospace, biometrics, AR/VR testing equipment, unmanned driving, etc. IPO fundraising helps high-end precision optical product production and R&D projects, develop new products and technologies, expand high-quality production capacity, and enhance the company's core competitiveness.

Semiconductors: Helping to localize lithography machines, the testing equipment business is expected to continue to grow. The company's precision optical products are used in semiconductor inspection equipment of leading international companies KLA and Camtek. The company's share of the global industrial precision optics market in the semiconductor sector was 3% in 2021. Maolai Optics' precision optical devices have been successfully applied to SMEE, providing optical devices for homogenization and relay lighting modules, projection lenses, and prism components for workbench position measurement systems for its photometer optical systems.

The United States has pressured its allies many times to restrict the export of lithography machines to China, and China's demand for localization of lithography machines is strong. The autonomy and control of optical devices is a key element. Maolai Optics is expected to continue to make breakthroughs in precision optics, helping the development of Shanghai's microlithography machine business.

The life science business has plenty of room to grow, and other optics can be expected in the future. Life science: Mainly used in gene sequencers, intraoral scanners, etc. The company supplies optical devices and components for Align intraoral scanners. The main customer in the field of optical gene sequencers is Huada Intelligent Manufacturing, which provides them with high-throughput optical engine engines. The company's products have the advantages of high imaging breadth and clear imaging results. With high-quality product quality, the life science business is expected to grow rapidly. Aerospace: The company has cooperated with 508 for more than 10 years, providing optical devices and lenses for satellites, etc. At the same time, the company has also deployed HUDs for large domestic aircraft to help the country develop major science and technology undertakings. AR/VR: Major customers of optical test modules and optical inspection equipment include Microsoft and Facebook. With the rapid growth of AR/VR demand, the company's AR/VR inspection equipment business is expected to fully benefit.

The first coverage gave an “increase in holdings” rating. The company is deeply involved in the field of optics and can quickly meet the customized and differentiated development needs of customers. The company's estimated revenue in 2023-2025 will be 530, 637, and 934 million yuan respectively. The current market capitalization corresponding to PS is 24, 20 and 14 times, respectively.

Risk warning: Downstream demand, new product development progress falls short of expectations, and the risk of increased market competition