Specializing in the field of optics for more than 20 years, diversified layout continues to grow. The company was founded in 2002 and listed on the Shenzhen Stock Exchange in 2008. At present, it has built five business sectors: optical components, thin film optical panels, semiconductor optics, automotive electronics (AR+) and reflective materials, and continues to promote the global layout, forming three major market segments in Greater China, Europe and the United States, and Pan-Asia-Pacific region.
Consumer electronics: mobile phone micro-innovation continues, actively open up new markets. 1) in terms of optical components, infrared filters are growing steadily, and their upgraded products, absorption and reflection composite filters, have been successfully introduced into the mainstream terminals in the domestic market. In addition, major customers are equipped with quadruple reflection periscope telephoto cameras for the first time, and the company provides microprism modules, which are important parts, and occupies a higher share. In the future, with periscope sinking to more models, the company is expected to benefit deeply; 2) in terms of thin film optical panels, mobile phones and other rear covers are gradually being given diversified functions, and thin film optical panels have become a new trend and have become the company's second largest basic plate. With the increase of the company's share in large clients and the improvement of its own yield, it is expected to continue to grow in the future; 3) in semiconductor optics, relying on 3D camera popularity to become a narrowband filter head enterprise, in which DOE/Diffuser products are expected to cut into the major customer supply chain and further expand product share by virtue of cost advantage.
Automotive Electronics (AR+): the era of smart driving is coming to create the second growth curve. 1) in terms of vehicle HUD, the company is the first manufacturer to mass-produce AR-HUD, accelerating the penetration of markets at home and abroad, and laying out W-HUD at the same time. It is expected that the penetration rates of W-HUD and AR-HUD in China will reach 24% and 15% respectively in 2025. At present, the company has more than 10 designated projects, and the future increment space is considerable. 2) in terms of lidar, as an important sensor to achieve L3 or above auxiliary driving function, the lidar penetration rate of China's new energy vehicle market has reached 25.6% in 2022. The company is the first mass production manufacturer of glass-based lidar window film in China, and has the leading advantage in technology. under the background of the gradual realization of domestic substitution of upstream optical devices, the company has obvious competitive advantage. 3) in terms of AR/VR, at present, the company mainly distributes three technology paths: reflected optical waveguides, diffracted optical waveguides and Birdbath, while providing components, imaging modules and a full range of solutions.
Profit forecast and investment advice: we expect the company to achieve operating income of 55.8%, 70.8%, 8.35 billion yuan, respectively, up 27.5%, 26.9%, 17.9%, and net profit of 6.0, 8.0, 930 million, 4.8%, 33.2%, 15.4% in 2023, 2024, 2025 and 2025, respectively, with an increase of 4.8%, 33.2%, 15.4%, and the current stock price corresponds to 2023, 2024, and 2025, respectively, with a PE of 2721,21,18X. The valuation in the next two years is more attractive, covering it for the first time and giving it a "highly recommended" rating.
Risk hints: the recovery of mobile phones is not as expected; the development of smart cars is not as expected; and the progress of research and development is not as expected.