Incidents:
In 23Q3, the company achieved revenue of 338 million yuan, +35.26% year-on-year, +25.42%; net profit of the mother was 35 million yuan, +149.28% year-on-year, and +89.87% month-on-month. Non-profit deducted $26 million, +152.96% year-on-year and +82.46% month-on-month. In terms of profitability, 23Q3's gross sales profit margin and net sales interest rate were 39.45% and 9.24%, respectively, a further increase over the previous month.
23Q3 Revenue continued to grow, and gross margin reached a record high
The company's Q3 revenue grew rapidly, mainly due to an increase in revenue from domestic replacement laser products in the field of new energy lithium batteries, and an increase in revenue from intelligent equipment products. In terms of profitability, the company's Q3 net profit increased dramatically, and gross margin reached a record high, sales product structure was optimized, cost control was strengthened, and overall gross margin increased. In addition, the company has shrunk its sheet metal cutting business with low gross margin, while the share of laser/optical intelligent equipment business with high gross margin continues to rise. According to the company's 2022 annual report, the gross margin of the company's laser/optical intelligent equipment is 41.71%.
MR equipment has a large potential for growth. The second-generation MR project is steadily advancing the consumer electronics field. The MR glasses module testing machine produced by the company can be applied to MR lens imaging distortion detection, can accurately measure the position of the screen pixels located in the optical center of the lens, analyze differences in binocular imaging distortion, and effectively reduce the sense of dizziness users feel when wearing VR/AR devices. On the basis of delivering MR optical calibration equipment to leading customers in the industry in 2022, the company has also developed more equipment for the optical inspection of its MR optical modules. In addition, in the first half of 2023, the company assisted customers in developing their second-generation MR products and plans to add more optical inspection projects. The future is expected to benefit deeply from the rapid growth in MR equipment shipments.
The rapid growth of lithium batteries and photovoltaic equipment:
(1) In the field of lithium batteries, the company began to lay out the lithium battery field in 2021. In 2022, based on the customer's technical requirements in lithium battery welding, the annular spot adjustable laser developed by the company won technical recognition from the customer during actual laser welding. In 2023, in a new round of laser procurement for lithium battery high-speed demonstration production lines, the company's laser products will largely replace imported lasers. (2) In the field of photovoltaics, the company became the first batch manufacturer in the industry to ship actual TopCon SE laser-doped light sources in batches on crystalline silicon's photovoltaic technology route. In the field of photovoltaic perovskite, the company can provide a series of laser intelligent equipment for high-precision marking of thin film batteries, which can cover P1 to P4 laser die cutting and laser edge cleaning processes in perovskite battery production. 2023H1 JPT collaborated with GCL Optoelectronics, a leading perovskite photovoltaic cell company, to create a complete set of laser marking equipment for the 100MW perovskite photovoltaic cell mass production line.
Investment advice:
We estimate that the company's revenue from 2023 to 2025 will be 1,467 million yuan, 1,921 million yuan, and 2,555 million yuan, respectively, and net profit of 157 million yuan, 254 million yuan, and 370 million yuan respectively.
Since the company is the leading laser in China, it continues to be optimistic about the domestic replacement of lasers in the field of new energy lithium batteries, giving the company a valuation of PE36.00X in 2024, corresponding to the target price of 96.12 yuan. Give the investment a “buy-A” rating.
Risk warning:
The risk of price increases for upstream raw materials, the risk of iterative technological upgrades, the risk of R&D failure, the risk of high customer concentration, and the risk that demand for downstream products falls short of expectations.