Incident: The company released its 2022 annual report: revenue of 2,529 billion yuan in 2022, a year-on-year decrease of 27.75%; Guimu's net profit was 502 million yuan, a year-on-year decrease of 54.82%.
Key points of investment
It won the bid for three airborne optoelectronic products and focused on R&D to gain a competitive advantage. The company has successfully established a comprehensive industrial chain research and production layout from basic infrared core components, integrated optoelectronic systems to advanced overall equipment systems. Taking advantage of the advantages of an integrated R&D and production system, the company achieved good results in first and second place when it participated in the bidding for airborne optoelectronics projects for the first time, and successfully won three related projects. At the same time, the company has dozens of research laboratories to protect the needs of optoelectronic systems such as radar, laser, communication, artificial intelligence, gyrostabilized servo, target detection and tracking.
Using the advantages of traditional infrared technology, we will actively lay out the field of autonomous driving across borders. In the context of the rapid development of the autonomous driving market, the company successfully applied infrared assisted driving systems to pre-installation projects of well-known OEMs such as Dongfeng Mengshi and GAC Aian. Furthermore, the company reached a strategic partnership with a leading algorithm company in China to jointly promote the industrialization process of infrared technology in the field of automotive applications. Since infrared sensing technology has advantages such as anti-glare and bad weather interference, and all-weather intelligent driving detection, companies such as Volvo and Apple are actively developing or applying related technologies.
As demand for autonomous vehicles increases, the future market prospects for in-vehicle infrared sensors are broad.
254.691 million shares were repurchased to strongly support employee shareholding and equity incentive plans. The company has repurchased a total of 25.47 million shares through centralized bidding, accounting for 0.78% of the total share capital, and the total payment amount is as high as 300.94 million yuan. All of the shares repurchased are used for equity incentives or employee stock ownership plans, which will stimulate employees' sense of innovation and enthusiasm for work, help the company maintain competitiveness and long-term development, and bring more room for shareholders to realize value.
Profit forecast and investment rating: Considering that downstream equipment sales fell short of expectations, we adjusted the net profit attributable to the mother for 2023-2025 to 7.91 (-10.62) /11.06 (-12.06) /1,467 billion yuan; the corresponding PE was 47/34/26 times respectively, lowering the investment rating to “increase holdings”.
Risk warning: 1) downstream demand and order fluctuations; 2) company profits fall short of expectations; 3) market systemic risk.