Crystal Optoelectronics released its 2023 annual report: The company achieved revenue of 5,076 billion yuan in 2023, an increase of 16.01% year on year; realized net profit of 600 million yuan, an increase of 4.15% year on year; realized net profit after deduction of 523 million yuan, an increase of 2.72% year on year.
Key points of investment
Performance has steadily improved, and the results of the consumer electronics+automotive optoelectronics+metaverse optics layout are beginning to benefit from the three major sector layouts of consumer electronics+automotive optics+metaverse optics. Under the macroeconomic and industry facing major challenges, the company achieved revenue of 5,076 billion yuan in 2023, an increase of 16.01% year on year; achieved net profit of 600 million yuan, an increase of 4.15% year on year. On the cost side, the company's sales expense ratio, management expense ratio, R&D expense ratio, and financial expense ratio were 1.40%, 6.97%, 8.35%, and -1.38%, respectively. Among them, due to the surge in R&D expenses due to the development of new products for major customers, the R&D expenses rate increased 0.73 pct year-on-year.
Microprisms were successfully mass-produced, creating a new growth curve
The company successfully mass-produced miniature optical prism modules in June 2023, becoming the world's first mass production supplier of quadruple reflection prism modules. The success of the micro optical prism module project has enhanced the company's intelligent manufacturing capabilities, opened a new level of cooperation with major North American customers, successfully transformed from a single component manufacturer to a complex optical module and solution provider, and became the core business supporting the company's positive sales growth.
The automotive business ushered in a new pattern, and is deeply involved in AR/VR to seize new opportunities in the metaverse. In terms of automotive optoelectronics business, the company shipped more than 200,000 units of HUD in 2023, and ARHUD ranked first in the domestic market share. At the same time, the company actively improved the customer structure of the automotive business, obtained Jaguar Land Rover's HUD project, and became the first Chinese HUD Tier 1 enterprise to enter mainstream overseas vehicle brands; it has joined many OEMs such as Geely, Dongfeng Rantu, and Changan Mazda, and has obtained more than ten designated projects.
In terms of AR/VR business, the company has been in the AR/VR field for 15 years, focusing on the development of reflective and diffractive optical waveguide technology, integrating relevant resources, achieving technological breakthroughs in design, process and inspection around mass production, and striving to lay the foundation for industrialization.
Profit forecasting
The company's revenue for 2024-2026 is estimated to be 64.21, 77.58, and 9.081 billion yuan, EPS 0.54, 0.68, and 0.81 yuan, respectively. The current stock price corresponds to PE of 26, 21, and 18 times, respectively. We are optimistic about the company's layout of the three major sectors of consumer electronics+automotive optics+metaverse optics. It was covered for the first time and gave it an “gain” rating.
Risk warning
Macroeconomic fluctuation risk, industry competition risk, major customer dependency risk, exchange rate fluctuation risk, etc.