[matters]
Recently, Lianzhan Optoelectronics issued a performance forecast for 2022. It is expected that the company will achieve a return net profit of 257 million yuan to 272 million yuan in 2022, an increase of 70 percent over the same period last year. The company will realize deduction of non-net profit of 246 million yuan to 261 million yuan, an increase of 94 percent over the same period last year.
On the same day, the company announced that it planned to invest in Shaanxi Ruixun Electronic Information Technology Co., Ltd. in the form of cash payment with its own funds. After consultation between the parties to the transaction, the transaction price shall be carried out in accordance with the post-investment valuation of the underlying company at RMB 110 million. This investment is carried out in the form of partial equity of the original shareholders of the subject company and capital increase of the target company subscribed. TES has invested a total of RMB 33 million in cash payment with its own funds. After the completion of this investment, TES holds a 30 per cent stake in the underlying company.
[comments]
Lean management leads to steady growth of performance. In 2022, the company withstood the downward pressure of economic demand and continued to expand the market, so that the end-customer base continued to increase. The emergence of new customers and new products not only optimized the product structure, but also promoted the counter-trend growth of business income. On the other hand, the company pays attention to the improvement of supply chain management and production efficiency, which not only reduces costs but also boosts the gross margin level of its products. To promote its own brand strategy to achieve results, MicroTouch has confirmed revenue of about US $2800 in the first three quarters, and there are still a large number of orders on hand, which is expected to double for the whole year. In addition, the decline in the cost of raw materials, superimposed previous exchange rate changes and other factors also have a positive impact on the company's profit level.
Vertically integrate the supply chain to accelerate the vertical extension of the Internet of things. Ruixun Technology has two major business departments, the embedded computer Application platform Department and the Internet of things system Department, and is the main partner of domestic self-service terminals and new energy industry head customers. The current product applications include production line equipment (machine tools, PLC, instruments, transmitters, etc.), photovoltaic power generation equipment (inverters, components), wind turbine equipment, environmental protection equipment, heavy machinery and other fields. Key customers are Feng Nest, NONGFU SPRING CO., LTD., Longji, Vision Energy and so on. Based on this cooperation agreement, Lianzhan Optoelectronics will introduce some Ruixun product lines to further expand its product matrix and loT solution development capabilities. On the other hand, in the face of the tens of billions of global Internet of things access smart equipment market, Xizan Optoelectronics's global sales network can effectively help Ruixun Technology to expand customer resources and jointly achieve greater success in the commercial Internet of things and the industrial Internet of things.
[investment advice]
As the human-computer interaction terminal of the Internet of everything and the important basic equipment for the digital and intelligent transformation of various industries, commercial intelligent interactive display devices have good demand prospects and market growth space. With the smooth development of the company's brand operation strategy, the continuous development of new customers and new products, the exchange benefits brought by the superimposed overseas business, and the significant improvement in the company's profit level, we maintain the forecast of the company's 2022 shock 2023 shock 2024 operating income of 20.06 shock 26.49 / 3.295 billion yuan respectively, while the company through continuous lean production management and optimize product structure. The gross profit margin gradually increased, so the forecast of the company's return net profit for the next three years was raised to 2.64 EPS 3.44 / 436 million yuan, the EPS was 1.79 + 2.33 + 2.95 yuan, and the corresponding PE was 13-10-9 times, maintaining the "overweight" rating.
[risk Tip]
The progress of customer development is not as expected.
Risk of price fluctuation of raw materials
Exchange rate fluctuation risk
Risk of reduction by controlling shareholders
Downstream market demand is lower than expected.