Main points of investment:
Focus on optical lenses and practice civil-military integration. Since its establishment, the company has experienced three stages of development: in the first stage, from the founding of the company to 2006, the company has realized domestic alternative imports in the field of optical lenses, which has made great contributions to the development of the national optical cause. The second stage (2006-2017) is the rapid development stage of the company. Thanks to the company's pioneering high-pixel lens and being among the best in the global security lens field, the company has important participation in a number of major national space and navigation projects. While accumulating rich project experience, the company also ahead of time layout of other hot areas. From 2017 to now (the third phase), the company has entered an era of diversified development, extending the advantages of optical lenses to blue ocean markets such as the Internet of things and artificial intelligence. The company actively practices the development path of civil-military integration and creates a unique innovative mechanism for civil-military integration. Over the years, the company has actively and effectively promoted the exchange of civil and military technology, transferred the experience and technology of major national defense projects to the civilian field, and realized the technological upgrading of civilian lenses; at the same time, mature civilian technology can be directly applied to military products in need, effectively shortening the research and development cycle and reducing costs. The mutual transformation between the army and the people forms a virtuous circle, which promotes the company's continuous scientific research and innovation, and the military and civilian development complement each other.
If you bite on the green hill, you will never relax and concentrate on building the core technological advantage. The company has been focusing on the R & D, production and sales of optical lenses and components. Excellent concentration has created an excellent position in the industry; on the other hand, the company has resolutely implemented the development idea of civil-military integration since its birth, has rich experience in the exchange of military and civilian scientific and technological achievements, and has achieved one step faster in many fields. With the help of this development idea, the company has developed steadily in the past three years. In 2017, the operating income reached 580 million yuan, and the net profit returned to its mother reached 91.256 million yuan.
The company's products are mainly divided into customized and non-customized categories, considering that the market demand for customized products has maintained rapid growth and the company has accumulated good word-of-mouth and customer resources for many years, high-end core technology products such as high-definition, wide-angle and large aperture are still growing. In addition, in the environment of weak macroeconomic growth, the company's net profit rate of sales has always been higher than the average of coinage companies in the same industry, which on the one hand attaches great importance to scientific and technological innovation, on the other hand, it also reflects the high recognition of the value of the company's products in the industry, therefore, it is believed that the company can still achieve sustained and stable growth in the future.
Domestic optical industry chain: struggling to catch up with rising stars. With the rapid development of China's comprehensive strength and the reduction of production costs, the domestic optical industry began to catch up with the support of the state after 2000. Today, the global optical lens industry is moving like China, we have initially broken the original monopoly situation, a number of excellent domestic lens enterprises began to shine. Taiwan has advanced enterprises such as Dali Optoelectronics and Asian Optics, while the mainland has Shunyu Optics, Fuguang shares and other high-quality manufacturers. Among them, due to the strong support of the state and the rapid development of market demand, the development of optical lenses in the field of security is a blockbuster. Chinese security enterprises are not what they used to be. Late-stage rookies such as Haekangwei and Dahua shares are competing with established global security giants such as Bosch and Anxis for the global market cake, and domestic substitution for imports has become a foregone conclusion. Domestic lens manufacturers supplying for security enterprises have also developed with each passing day. Only three Chinese companies have taken up a high share of the global security surveillance lens market, among which Shunyu Optics and Umil Optics are the main competitors of Fuguang shares. Today's domestic lens enterprises are no longer the same as they were 2000 years ago. Under the background of this vigorous development, Fuguang shares have gradually stepped onto the world stage by virtue of its technological advantages and rich experience in military and civilian exchanges.
Profit forecast and investment rating: cover for the first time and give an overweight rating. The company is expected to make a net profit of 95 million, 103 million and 110 million yuan respectively from 2019 to 2021, covering it for the first time and giving an overweight rating.
Risk tips: 1, security, vehicles and AI lenses and other advanced market development is not as expected; 2, the market competition is further intensified; 3, the construction progress of fund-raising projects is not as expected.