Event: disclosure of the company's three quarterly reports
Revenue in the first three quarters of 2020 was 2.961 billion yuan, down 10.47 percent from the same period last year; operating costs were 2.572 billion, down 12.56 percent from the same period last year; and net profit belonging to shareholders of listed companies was 214 million yuan, up 38.14 percent from the same period last year. Since the beginning of this year, affected by the epidemic and other factors, the company's total revenue has declined, but through lean management measures such as cost reduction and efficiency improvement, gross profit and net profit have increased over the same period last year. Under the pressure of profit growth of traditional business, the company actively develops the field of high temperature superconductivity and laser, which brings new opportunities for the development of the company.
Main points of investment:
Sustainable development of traditional military business: as a listed company with profound military industry background, Lianchuang Optoelectronics Integration, upgrading and development has expanded many military business, including "Jiangxi Lianchuang Special Microelectronics Co., Ltd." and "Northern Lianchuang Communication Co., Ltd.". It has layout in military semiconductor discrete devices, communication equipment and so on. It undertakes the scientific research and production tasks of national key projects and supporting electronic components of weapons and equipment, involving aerospace, aviation, weapons and other fields. In addition to the traditional optoelectronic business has a large number of military orders, the company's comprehensive transformation, industrialization of laser and high temperature superconducting two new businesses also have very good application prospects in the military field. Among them, high temperature superconducting business can effectively improve the material performance of military materials such as titanium, titanium alloy and military aluminum profiles, and solve the industry pain points of uneven heat dissipation and inconsistent material properties of military equipment materials in our country. help to improve the overall quality of military metal materials in China. High-power semiconductor lasers in laser business are used in lidar, laser simulation and deep-sea optical communication.
Layout of high temperature superconducting, broad market space: the company and Jiangxi Electronics Group Co., Ltd. jointly invested in the establishment of "Jiangxi Superconducting Technology Co., Ltd." to carry out high temperature superconducting induction heating equipment R & D and production. In July 2019, the megawatt superconducting magnet induction heating device organized by the company and the large mouth high temperature superconducting magnet used in the device were successfully developed. With a wide range of applications and broad demand prospects, the company is actively promoting the landing of HTS industrialization projects and further developing to more fields.
In conjunction with the CAEP's layout of laser business, the company has given the company new momentum for transformation and development: the company has reached a strategic cooperation with the Institute of Applied Electronics of the Chinese Academy of Engineering Physics (Nine Academies and Ten Institutes) to establish Zhongjiu Optoelectronics, a laser technology industrialization operation company. and launch the medium-and long-term laser industry project.
With the development direction of high-power semiconductor laser packaging, fiber coupling module, laser manufacturing light source, laser display light source and so on, it will widely serve many fields such as industry, military industry, medical treatment, security, communication and so on. In the future, the laser business is expected to become a new performance growth point of the company.
Profit forecast and investment suggestions: in 2020, 2021 and 2022, the company is expected to achieve a net profit of 259 million yuan, 428 million yuan and 529 million yuan respectively, corresponding to 0.58,0.97,1.19 yuan respectively, and the PE of the corresponding stock price is 41.83,25.31,20.48 times respectively, maintaining the "overweight" rating.
Risk factors: traditional business decline, laser business is not as expected, high temperature superconducting business is not as expected.