Incidents:
The company released its 2022 annual report. The company achieved annual revenue of 14.96 billion yuan, a year-on-year decrease of 8.40%, and a net profit of 1.21 billion yuan to the mother, a year-on-year decrease of 39.35%.
Comment:
The downturn in the consumer electronics industry was the main reason for the decline in the company's performance. Poor demand throughout the year in the consumer electronics industry in 2022 dragged down equipment investment. The company's annual consumer electronics business achieved revenue of 2,050 billion yuan, a year-on-year decrease of 30.13%. The PCB equipment business, which is located upstream of consumer electronics, achieved revenue of 2,786 billion yuan, a year-on-year decrease of 31.72%. The company continues to innovate, obtain major market shares in projects such as mobile phone surface treatment, mobile phone metal material welding, air tightness testing, etc., and continues to develop high-end PCB markets such as HDI, IC packaging substrates, flexible and rigid composite boards. Currently, the consumer electronics industry is at the bottom. There is a marginal positive trend, and the company's related business performance is expected to rise steadily.
The new energy business is growing rapidly, and continuous performance can be expected. The company's annual lithium battery equipment business achieved revenue of 2,536 million yuan, an increase of 27.94% over the previous year, and the photovoltaic equipment business achieved revenue of 228 million yuan, an increase of 69.81% over the previous year. The company started its new energy business late, but it achieved rapid entry with its deep technical heritage. Currently, the lithium battery business is located at production bases in Shenzhen, Changzhou, Jingmen, Yibin, etc., and production capacity is gradually being released. The photovoltaic business lays out equipment such as lasers, PECVD, PVD, diffusion furnaces, and annealing furnaces, and has a rich product line. The new energy business is expected to continue to contribute to increased performance.
The largest platform company for laser equipment in China, helping domestic products replace domestic products in various fields. In the face of an unfavorable external environment in '22, the company's performance in the semiconductor equipment and general laser equipment sector remained steady. Among them, semiconductor equipment increased 7.70% year-on-year, and general laser equipment remained basically the same. The company promotes domestic substitution in many fields such as semiconductor sealing, wafer transmission, silicon carbide cutting and laser annealing, high-power and three-dimensional five-axis laser cutting, and intelligent welding lines for white car bodies, and has broad room for growth.
Profit forecast: The company's net profit for 2023-2025 is expected to be 1,762 million, 2,250 million and 2,725 million dollars, corresponding to PE 19, 15 and 12 times. The first coverage gave an “increase in holdings” rating.
Risk warning: The recovery of the consumer electronics industry fell short of expectations; the development of the new energy business fell short of expectations