Main points of investment

Next Monday (July 10), there will be a Science and Technology Innovation Board listed company "Guangge Technology" inquiry.

Optical Technology (688450): the company focuses on the R & D, production and sales of asset monitoring operation and maintenance management system with distributed optical fiber sensor as the core, and provides customers with digital and lean comprehensive solutions for asset monitoring, operation and management. The main products are widely used in power grid, submarine cable, integrated pipeline corridor, petrochemical and other fields. From 2020 to 2022, the company achieved operating income of 195 million yuan / 280 million yuan / 301 million yuan, YOY of 69.55%, 43.61% and 7.49%, respectively, and the annual compound growth rate of three years' operating income was 37.81%. The net profit of homing was 35 million yuan / 66 million yuan / 69 million yuan, the YOY was 115.14%, 87.45% and 4.64% respectively, and the annual compound growth rate of three years' net profit was 61.6%. In the latest reporting period, 2023Q1 achieved an operating income of 17 million yuan, an increase of 46.33% over the same period last year; its net profit was-11 million yuan, narrowing its loss compared with-16 million yuan in the same period last year. According to the preliminary forecast, the net profit attributed to the shareholders of the parent company in the first half of 2023 is expected to be 18.7 million yuan to 20 million yuan, an increase of 3.50% and 10.70% over the same period last year.

Investment highlights: 1. The company is the leader of distributed optical fiber sensing in China, with integrated supply of software and hardware, and is expected to continue to benefit from the gradual infiltration and substitution of distributed optical fiber sensing technology to other traditional application fields of technology. The distributed sensor makes the whole optical fiber can be used as a sensor, which has the advantages of no monitoring blind area, long monitoring distance, strong anti-interference ability, long life, easy installation and laying, high security and so on. However, as an emerging technology, the permeability of this technology is relatively low, with less than 8% in power grids and integrated corridors, and only 2% in other areas (petroleum and petrochemical, transportation infrastructure, urban security). Since its establishment, the company has been focusing on the research and development of distributed optical fiber sensing solutions, and is one of the few domestic manufacturers with the ability to design the underlying hardware and embedded software of distributed optical fiber sensors. according to Frost&Sullivan, the company ranks first in the domestic distributed optical fiber sensing market share in 2021. As the leader of distributed optical fiber sensor subdivision, the company is expected to continue to benefit from the further development of the technology and the increase in permeability driven by lower costs. 2. The company is ahead of the industry in the main application fields of power grid and offshore wind power monitoring submarine cable, and its overall competitiveness is more prominent. 1) the company is deeply engaged in the field of power grid, and has provided more than 1000 high-voltage cables and more than 1000 km of power facility asset monitoring and maintenance management system for the national and southern power grids. And created a total investment of 8.274 billion yuan "Xi'an northeast suburb 330kV overhead line relocation project fire detection project", the world's first UHV flexible DC project "Wudongde Power Station UHV multi-terminal DC demonstration project cable online monitoring project" and other benchmarking projects. Among them, the company has an outstanding competitive advantage in the field of high-voltage cables, and the bidding amount of the asset digital monitoring operation and maintenance system managed by high-voltage cable and channel monitoring operation and maintenance system ranks first in China from 2020 to 2022. 2) the company is a small leader in the field of domestic submarine cable monitoring. According to the official website of the State Energy Administration, as of 2021, the total installed capacity of the submarine cable project that the company participated in was 14.59GW, and the total length of monitoring submarine cable 5926km, accounting for 55.29% of the cumulative installed capacity of offshore wind power in China in the same period. It is a cooperative supplier of Zhongtian Technology, Oriental Cable, Hentong Optoelectronics and Han Cable, the top four submarine cable manufacturers in China. In addition, the company is planning to gradually develop mainstream application scenarios of optical fiber sensors such as petroleum and petrochemical, urban traffic, large-scale buildings and so on.

Comparison of listed companies in the same industry: select the science and technology of science and technology, Kehui shares and Rong Zhi Rixin as comparable listed companies of optical technology in the same industry. From the above-mentioned comparable companies, the average income in 2022 is 467 million yuan, the comparable PE-TTM (excluding the shares of science and technology exchange / arithmetic average) is 76.80X, and the sales gross profit margin is 45.03%. Comparatively speaking, the company's revenue scale is lower than the industry average, and the sales gross profit margin is higher than the industry average.

Risk hint: companies that have started the inquiry process still have the possibility of not being listed due to special reasons, the company content is mainly based on prospectuses and other public materials, and the selection of listed companies in the same industry is not accurate. Risk, content data interception may have interpretation deviation and so on. The specific risks of listed companies are shown in the text.