Incidents:
1. The company released its 2023 annual report. In 2023, it achieved revenue of 1,226 billion yuan, an increase of 4.46% over the previous year; realized net profit attributable to owners of the parent company of 107 million yuan, an increase of 39.87% over the previous year; and realized net profit without deduction of 86 million yuan, an increase of 58.20% over the previous year.
2. Judging from the Q4 single-quarter results, achieved revenue of 322 million yuan, a year-on-year decrease of 12.31% and a year-on-month decrease of 4.67%; realized net profit attributable to owners of the parent company of 0.23 million yuan, a year-on-year decrease of 8.48% and a year-on-month decrease of 32.76%; realized net profit without return to mother of 0.18 million yuan, an increase of 63.52% year-on-year and a decrease of 29.90% month-on-month.
Revenue increased year over year, and profitability increased significantly:
The company's revenue in 2023 increased slightly compared to the same period last year, mainly due to the company's product development and business development in the field of power battery laser processing, and the increase in revenue from lasers and laser processing systems related to power battery laser processing. In addition, revenue from optical inspection and calibration equipment developed by the company for customers' mobile phone camera modules has also increased. Looking at the revenue structure, the company's lasers achieved revenue of 665 million yuan, a year-on-year increase of 11.63%; laser/optical intelligent equipment achieved revenue of 436 million yuan, a year-on-year decrease of 8.11%; and optical fiber devices achieved revenue of 122 million yuan, a year-on-year decrease of 22.94%. In terms of profitability, the company achieved a significant increase in net profit attributable to shareholders of the parent company, mainly due to the effectiveness of the company's strategy to adjust the direction of the continuous light laser business and reduce expenses related to this business. In addition, the new laser products and laser/optical intelligent equipment provided by the company in power batteries, photovoltaics, and optical inspection use higher power laser products and updated laser/optical technology. The profit level of the new products is higher than that of traditional consumer electronics laser processing equipment.
A variety of XR devices have been approved by customers:
In the field of consumer electronics, the MR eyewear module testing machine produced by the company can be applied to MR lens imaging distortion detection. It can accurately measure the screen pixel position located in the optical center of the lens, analyze differences in binocular imaging distortion, and effectively reduce the user's sense of dizziness when wearing XR devices.
In addition, the company gave full play to the advantages of its optical inspection and laser equipment and obtained more orders for XR related equipment, including lens coating defect detection equipment for customer XR equipment and laser marking equipment related to customer XR products. At the same time, the company also continues to cooperate with customers to develop testing and processing equipment related to their future XR products. Currently, several projects are exclusively supplied.
In the future, with the rapid development of the XR industry, the company is expected to benefit deeply.
Investment advice:
We expect the company's revenue from 2024 to 2026 to be 1,716 billion yuan, 2,231 million yuan, and 2.90 billion yuan, respectively, and net profit to mother of 213 million yuan, 310 million yuan, and 451 million yuan respectively. Considering that the company is a leader in the domestic laser industry, it continues to be optimistic about domestic laser replacement in the field of new energy lithium batteries. The company was given a valuation of PE23.00X in 2024, corresponding to a target price of 51.52 yuan. Give it a “buy-A” investment rating.
Risk warning:
The risk of new technologies, new processes, and new products not being industrialized as scheduled, the risk of industry and market fluctuations, the risk of international trade friction, and the risk of rising product production costs.