Key points of investment
Initiate the acquisition of fiConTEC, announce the creation of a leading high-end optical module equipment company, issue shares and pay cash to purchase holdings to acquire fIConTEC. fIConTEC is a global optical module/CPO equipment leader. Customers cover a number of world-renowned optical module giants such as Intel, Cisco, NVIDIA, Lumentum, Finisar, Veloydne, and Huawei. The AI era has greatly stimulated demand for computing power, and has also led to an explosion in demand for optical modules. As a leading enterprise in high-end optical module equipment, fiConTEC will fully benefit from the development of the industry and usher in rapid business growth. The company further owns fiConTEC and will create a two-wheel drive development model for optical module equipment+photovoltaic equipment. Future development can be expected.
The mid-year report performance increased sharply over the previous year, with sufficient orders on hand. The company's annual results or those that exceeded expectations achieved operating income of 628 million yuan, an increase of 81.26% over the previous year, and net profit attributable to the mother was 115 million yuan, turning a loss into a profit over the previous year. Considering that the company accrues asset impairment, the actual net operating profit is higher. Moreover, the amount of orders on hand for which the company has yet to confirm revenue exceeds 1.4 billion yuan, a significant increase over the same period last year. The company's main business operations have improved markedly, and the 2023 full-year results may have exceeded expectations. At the same time, the company continues to implement the “improve quality and efficiency” management policy to improve profitability and profitability. Against the backdrop of increased competition in the industry, the company still achieved a 4.86 percentage point increase in gross margin of the automation equipment product sales business.
Master the core technology, promote the layout of the solar copper electroplating business area, and build a second growth curve. The company will step up efforts to continue to promote the solar copper electroplating business layout. In terms of metallization, the company innovatively invented a plug-in solar cell copper electrode electroplating device and method. The invention realizes double-sided electroplating. A single wire can achieve 14,000 wafers/hour, and the breakage rate is < 0.02%. The company launched single GW copper plating equipment for solar cells and completed delivery to partner customers. As of the disclosure date of this report, the company has completed the installation and commissioning of copper plating equipment for single GW solar cells on the client, and has officially entered the first stage of testing.
In terms of graphics, the company has begun to gradually promote research and development in the field of graphics, and set up and implemented a research project for the development of photographic preparation equipment for solar cells in early 2023. According to the company's plan, an internal feasibility test evaluation of the graphical solution will be completed by the end of the third quarter of 2023.
Profit forecasting
The company's net profit for 2023-2025 is estimated to be 1.0 million, 170 million yuan, and 210 million yuan respectively, with year-on-year increases of 291%, 69%, and 19% in 2023-2025, corresponding to 73, 43, and 36 times PE. As a leader in high-end automation equipment, the company is expected to increase its two-wheel drive performance and maintain its “buy” rating in the future.
Risk warning
1) New technology expansion fell short of expectations; 2) Acquisitions fell short of expectations.