Summary of the report
Create micro-nano optical technology platform, cut into AR/3D naked eye field in the future, through self-produced micro-nano optical equipment, create optical micro-nano technology platform, the products are widely used in anti-counterfeiting materials, conductive film, light conductive film, lighting backlight and so on. At present, the company takes anti-counterfeiting materials and laser paper as the basic disk, and will focus on developing conductive film products of large and medium-sized touch products in the future. In terms of future business layout, relying on the production and development of micro-nano lithography machines, the company has cut into the field of AR and laid out a large number of patents around nano-grating optical waveguide lenses; in addition, in the field of 3D naked eyes, after years of efforts, the company has produced super-glume materials composed of pixel-type nano-gratings for light field control.
Medium and large size touch products: multi-scene development, medium and large size and flexible market to show the technological advantages of touch conductive film is one of the company's main products, mainly used in capacitive touch screens. Medium and large size touch products are mainly used in interactive whiteboards in conference systems and education systems, and have been introduced into international well-known customers such as ZOOM, an American video conference software provider, in 2019. In addition, there is a huge market space for TV touch screens, such as Hisense's products. We expect the market space for large-size touch modules to grow to more than 20 billion in 2023.
Display optical materials: increasing the introduction of the national manufacturing transformation and upgrading fund, accelerating capacity expansion companies from the light guide film (commonly used for notebook backlight keys), and then expanded to the light guide plate (for LCD backlight module and e-book headlight lighting), has become BOE, Samsung Electronics, Group Innovation, Youda, TPV, Jashida, Longteng Optoelectronics, CLP Panda important suppliers. The company plans to increase the introduction of war investment to expand production and extend the industrial chain; one of the transformation and upgrading funds is the specific investment carrier of the national manufacturing transformation and upgrading fund, which may help the company integrate the head resources of various industries in the future.
Reflective materials: mergers and acquisitions cut into the new "track", traffic signs market development in the car license plate film market company has occupied a large share, continue to benefit from the stock replacement, second-hand car trading market is active. Traffic signs). In the traffic sign market, the high-end microprism reflective film produced by the company in 2019 has been officially put on the market.
Public security anti-counterfeiting materials and new printing materials: traditional business building company basic plate company as China's designated driving license, driver's license supplier, the leading position is stable. In terms of new printing materials, tobacco and alcohol packaging is the company's traditional business, while the company is also making great efforts to develop cosmetics, daily necessities market.
Investment suggestion
It is estimated that the company's operating income in 2020-22 is 16.11 Universe 20.33 Universe 2.589 billion yuan, and the net profit attributable to the parent is 1.08Universe 160,000,000 Yuan, corresponding to PE 56.1 Universe 44.5 times, although the company's current valuation is higher than the 55.1 times ttm valuation of Shenwan Electronics, but considering the growth of medium and large size touch control business, we give it a "recommended" rating.
Risk hint
Large customer shipments fell short of expectations, capacity expansion fell short of expectations, Sino-US trade frictions escalated, and epidemic control fell short of expectations.