Summary of the report:
We have previously analyzed the fast-growing military business of Lida Optoelectronics, and the company also has a strong ability to transform, extend and upgrade technology, and civilian products have achieved a leap from components to components to modules. Lida started with military individual aiming observation equipment, and achieved the first domestic OEM contract production in the field of projector. After unremitting efforts, it has successfully entered the consumer electronics market and occupied a place in the field of high-end mobile phone cameras.
In the next step, the main growth point of the company's civilian products is the 5G mobile phone optical coating business, and the subsidiary Dianbang Optoelectronics has become the mainstream supplier in this field.
The business of car lens and mobile phone prism is growing rapidly. In recent years, through innovation-driven, the layout of mobile intelligent terminals, intelligent network-connected vehicle optical sensing modules and systems, AR/VR optical waveguide devices and other areas of transformation and upgrading. At present, the company's car lenses have achieved large-scale production, a new production line has been completed and put into production; the development of 3D face recognition precision optical filter has also achieved phased results, which is expected to promote a new round of development of OLPF business; the company's newly developed AR optical waveguide device has won the CIOE2018 Technology Innovation Award; panoramic prism and off-screen prism products for mobile phones have been successfully developed and small batch production has been realized.
Optical components products have been equipped with Huawei P30, technological breakthroughs or become industry standard. The optical prism produced by the company is currently equipped with Huawei P30 Pro periscope camera. we expect a total of 20 million P30 shipments in 2019, with an annual revenue space of about 30 million. As a leading company in the smartphone field, Huawei's technological breakthrough will become standard in the industry in the future. We predict that the market space of periscope camera prism business is about 600 million yuan per year.
The subsidiary Dianbang Optoelectronics leads the world in superhard non-reflective film technology, mainly for 5G mobile phones. Dianbang Optoelectronics was founded in 2015 and is 24 per cent owned by Lida Optoelectronics and Southern assets. The sapphire-like superhard reflective film independently developed by Dianbang Optoelectronics is mainly used in mobile phone module, automobile central control module and fingerprint identification module, which solves the two problems of mobile phone reflecting in direct sunlight and easy to be scratched by sharp objects. The second phase of the project is expected to be completed by the end of this year, which will achieve a total production capacity of 30 million pieces of superhard functional optical coating (year) and promote the development of coating equipment industry. The Ministry of Industry and Information Technology has officially issued a 5G commercial license, and we expect that terminal manufacturers will launch 5G mobile phones faster than base stations, and the demand for superhard film on glass, ceramic and composite backboards used in 5G mobile phones will increase greatly.
Company profit forecast and investment rating: the company's revenue from 2019 to 2021 is 3.31 billion yuan, 3.876 billion yuan and 4.876 billion yuan, and the net profit of its parent is 219 million yuan, 263 million yuan and 341 million yuan, up 31.37%, 20.35% and 29.28%, respectively. The EPS is 0.83,1.00,1.29yuan, corresponding to the closing PE of June 10, which maintains the "highly recommended" rating.
Risk hint: the expansion of the new civil market is not as expected, and the technological progress is not as expected.
