Key points of investment
Incident: The company released the “Double Improvement of Quality and Return” action plan on March 7, 2024. In order to protect the interests of all shareholders of the company, enhance investor confidence, and achieve the company's continuous high-quality development, the company formulated the “Double Improvement of Quality and Return” action plan. It includes five initiatives, including focusing on the main business, insisting on innovation, focusing on shareholder returns, promoting high-quality development, and strengthening credit disclosure.
Deeply cultivate the main business, focus on the field of vision, and continue to lead the development of the industry. The company is a leading enterprise in the field of optometry. It always sticks to its original intention, deeply engages in the main business, and focuses on R&D, production and sales of optometry products and related ancillary products, as well as optometry services. The company has established a complete sales network and after-sales service system to provide customers with timely and professional technical support and services through professional sales teams and customer service personnel.
Adhere to independent innovation and stimulate new momentum for growth. The company continues to increase investment in R&D, continuously optimize, and establish a perfect R&D innovation system. As of January 2024, the company has obtained a total of 12 invention patents, 42 utility model patents, 11 design patents, and 19 software copyrights. The project results conversion rate is over 90%.
Share development results and value shareholder returns. The company has always attached great importance to investor returns. Before listing, it left an undistributed profit of 171 million yuan and shared distribution with new shareholders. After listing, cash dividends were distributed every year, and the amount of dividends increased year by year, with a cumulative dividend of 496 million yuan. The cumulative dividend for the past three years was 374 million yuan, and the dividend ratio was not less than 20% of net profit returned to mother during the same period. In addition to cash dividends, the company also shares the company's development results with investors through “bonus shares” and “stock transfers.”
Profit forecast and investment rating: Referring to the company's 2023 performance forecast, we adjusted the company's 2023-2024 net profit from 7.93/9.64/11.67 to 6.45/7.46/845 million yuan. The PE valuation corresponding to the current market value is 27/23/21 times, respectively. Considering the attributes just needed to prevent and control myopia among young people, the company has great prospects for development and maintains an “increase” rating.
Risk warning: Product marketing falls short of expectations, risk of R&D failure, and increased risk of market competition.