Event: the company released the mid-2022 report, achieving operating income of 4.873 billion yuan, an increase of 1.3% over the same period last year; net profit of 103 million yuan, an increase of 6.1% over the same period last year, deducting 68 million yuan of non-net profit, an increase of 2.72% over the same period last year, and the overall performance was slightly lower than expected.
Main points of investment:
The core optical business has increased rapidly, and the profitability of structural optimization has been improved. During the reporting period, the company's optical business achieved revenue of 1.507 billion, an increase of 49.43% over the same period last year, accounting for 30.93% of the total revenue from 25.28% at the end of 2021. Gross profit increased from 59.88% to 76.93%, continuing to maintain an absolute core strategic position. In addition, due to the optimization of the business structure, the company's optical gross profit margin increased by 4.71pcts to 27.51% compared with 2021.
Vehicle optics has been steadily introduced into high-end customers, and the production capacity has been gradually released. During the reporting period, the company's revenue from in-car lenses and modules increased rapidly, up 910.30% from the same period last year. In terms of intelligent driving high-end platforms, the company continues to deepen cooperation with overseas Mobileye, Nvidia, as well as domestic Horizon, Huawei, Baidu, Inc., etc., to expand the market share of on-board lenses in Valeo, Conti, Aptiv, ZF, Magna, etc.; in terms of car factories, the company has expanded the cooperation scale of on-board lenses and image modules with Tesla, Inc., NIO Inc., BYD, Geely, etc., and the 8m ADAS imaging module cooperated with NIO Inc. Automobile has successfully produced goods. Tesla, Inc. 's HW4.0 platform is expected to become the main supplier of car lenses. In addition, the company is accelerating the construction of Hefei vehicle Optical Industrial Park and rapidly expanding the production capacity of vehicle lens and image module. It is planned that the production capacity of vehicle lens and image module will reach 3KK/ month and 800K/ month respectively in 2022.
Touch display business adjusts industrial layout and optimizes product structure. At present, the company focuses on developing medium and large-sized products in areas with strong profitability, such as smart cars, security monitoring, smart home appliances, education, etc., in which the scale of touch display products such as intelligent speakers and security equipment has maintained steady growth; the supporting project of vehicle touch module is progressing smoothly, which is expected to continue to improve the economic efficiency of enterprises and invigorate traditional assets.
Maintain high R & D investment and focus on long-term development. In the first half of the year, the company invested 183 million yuan in research and development, an increase of 56.82 percent over the same period last year, and 119 new patents were granted (including 79 patents granted to the optical industry), including 59 invention patents (including 4 foreign inventions). The company's R & D has been laid out in many fields. Crane Optical Engineering Academician Workstation mainly integrates top R & D talents at home and abroad to carry out applied research on optical frontier topics; Intelligent Optoelectronic Research Institute, Mobile phone Image Module Research and Development Department, HD wide-Angle Image Module Research and Development Department mainly designs and develops mobile phone image modules, HD wide-angle and panoramic image modules; specially set up institutions to engage in VR/AR research Relying on the company, Jiangxi Touch screen Engineering Technology Research Center and Jiangxi Touch screen Engineering Laboratory are established. At the same time, touch display module R & D departments are set up in Shenzhen and Chongqing.
Adjust profit forecast and maintain "overweight" rating. Taking into account the impact of the company's domestic epidemic and weak overseas consumption in the first half of the year, the demand for its consumer electronics-related products was suppressed, and the overlay showed that the downward trend in the industry affected touch display products. We lowered the company's 22-23 profit forecast from 4.94 PE 6.67 to 308 shock 524 million yuan, while increasing the 2024 forecast by 851 million yuan, corresponding to 6136amp 22X. We believe that the company is still in the first echelon in the field of automotive optics, and the future structural optimization is expected to improve profitability and maintain the "overweight" rating.
Risk tips: customer orders are not as expected; industry prosperity is not as expected; supply chain risk.