Incidents:
Semi-annual report of 2023:2023 In the first half of the year, the company achieved operating income of 388.6958 million yuan, an increase of 1.22% over the same period last year. Net profit attributable to shareholders of listed companies was 110,2617 million yuan, down 7.28% from the same period last year, and the weighted average return on net assets was 7.67%, down 1.63 percentage points from the same period last year.
Comment:
The company leads the world in nonlinear optical crystal technology, with a market share of 80%. The company mainly has three types of nonlinear crystals: LBO, BBO and KTP. After applying nonlinear optical crystals, lasers can generate lasers of various wavelengths due to the multiplier and mixing effects of nonlinear optical crystals on base-frequency lasers, broadening the application fields of lasers. The company's nonlinear optical crystals are widely used, and the market share of the company's nonlinear optical crystals has reached 80%.
Material Structure, the controlling shareholder of the company, holds KBBF and LSBO crystal patents, leading the world in technology.
The controlling shareholder of the company, has KBBF and LSBO crystal patents, leading the world in technical level. KBBF and LSBO crystals are the core components for manufacturing deep UV lasers. Deep UV lasers have the characteristics of short wavelengths. Using deep UV lasers, high-precision processing can be performed, and is widely used in the industrial field in the fields of semiconductors, instrumentation, and laser processing equipment.
At the end of the year, Photon's profitability increased rapidly. The company has advanced laser crystal processing technology and equipment, and supports the production of optical components for laser companies. Since the establishment of the company, Photonics has focused on the production of ultra-precise large-scale optical devices, and has carried out R&D tests in the fields of semiconductors, biomedicine and high-end testing, and is expected to achieve major breakthroughs. In the first half of 2023, Photon achieved net profit of 4.53 million yuan at the end of the year, quickly realized the company's profit, and at the end of the year, Photon's profitability increased rapidly.
New laser devices have broken through, and profitability has improved markedly. The company's self-developed acousto-optic devices, magneto-optical devices and other device products have been recognized by UV lasers, fiber lasers, and ultrafast lasers and are supplied in bulk, making it one of the mainstream suppliers of laser devices in China. In the first half of 2023, the laser device business benefited from the promotion of new products and the expansion of new customers, and revenue increased 15.21% over the same period last year.
Investment recommendations and ratings: The company is the world's leading laser crystal company. It has the dual advantages of technology and equipment. The company's nonlinear optical crystal market share in the global market is 80%. Using the advantages of existing technology, we continue to develop new laser crystal products, expand into optical component products, and lay out ultra-precise high-end application fields. We expect the company's operating income for 2023-2025 to be 861/11.09/1.48 billion yuan, and net profit to parent to be 228/284/372 million yuan respectively, giving the company a “increase in holdings” rating.
Risk warning: Sales of the company's products fell short of expectations, leading to a decline in profits.