The company announced on April 26 that the company's revenue in 2023 (773 million yuan, +23.34%), net profit due to mother (887 million yuan, +5.91%), net profit margin (66 million yuan, +17186.29%), gross profit margin (34.93%, +4.99pcts), net profit margin (15.94%, -0.63pcts).
The company's revenue for the first quarter of 2024 ($172 million, -9.26%), net profit attributable to mother ($17 million, -18.88%), net profit net profit after deducting non-return to mother ($14 million, -25.76%), gross profit margin (34.32%, -4.08pcts), and net profit margin (13.52%, -3.18pcts).
The company achieved rapid revenue growth in 2023, net profit to mother grew steadily, and the gross margin level further increased. The increase in the company's performance was mainly due to a rapid increase in revenue (289 million yuan, +150.08%) in the composites business sector (subsidiary Changguang Aerospace's first full year), while Changguang Aerospace's net profit performance promise in 2023 (committed amount not less than 65 million yuan, realized amount of 50,600 yuan, completion rate 142.31%) was exceeded from the company's inventory (424 million yuan, +0.42%). The estimated related transaction amount in 2024 (382 million yuan, +0.42%) increased 16.77% from the actual amount incurred in 2023 ) According to data such as rapid growth, the company's overall performance is expected to maintain a rapid development trend in the future.
The active layout of high-end CNC machine tools and semiconductors is expected to accelerate the development of performance. During the reporting period, the company's market share of high-end optical encoders and absolute grating scales gradually increased in domestic CNC machine tools, etc., and new products used in the semiconductor field entered user verification tests.
The listing of the participating company Changguang Chenxin was accepted, seizing the CMOS image sensor development circuit. In June 2023, Changguang Chenxin's listing application on the Shanghai Stock Exchange Science and Technology Innovation Board was accepted. The company held 25.56% of Changguang Chenxin's shares. Since its establishment, Changguang Chenxin has focused on the high-end COMS image sensor market, and its revenue and business scale have grown rapidly in recent years. It is expected to bring a certain return on investment to the company in the future.
The holding subsidiary Yuheng Optics completed capital increase and share expansion, and introduced strategic investors such as industrial parent machines. The shareholding ratio of the new strategic investors was 31.63%, and the newly established employee shareholding platforms (Qirun Investment and Qize Investment) held a total of 2.94% of the shares. It is expected to bring relevant industrial chain resources to the company in industrial mother engines and other fields, and help Yuheng Optical further improve product adaptability, expand the high-end product market, and achieve high-quality development.
The company belongs to the Changchun Institute of Optoelectronics of the Chinese Academy of Sciences. Since its establishment, it has been committed to the integrated development of opto-mechatronics, targeting fields such as aerospace, military, security, optoelectronic measurement and control, and new military and civilian medical equipment, forming a complete industrial chain extending from opto-mechatronics software to components to complete machine design and development, processing and manufacturing, and system integration and assembly services.
Our specific views and judgments are as follows:
① The optoelectronic measurement and control instrument business segment, as one of the company's main businesses, accounts for a relatively large revenue scale (36.81% of revenue in 2023), but the gross margin level is relatively low. Profitability is expected to maintain steady development; ② The grating encoder business sector, under the dual influence of localized replacement demand and the release of downstream demand, as one of the leading domestic high-end grating encoder companies, actively lays out high-end CNC machine tools and semiconductor fields. At the same time, Yuheng Optics has completed the introduction of strategic investors such as industrial motherboards, which is expected to expand industry chain resources and usher in accelerated performance development; ③ The composite materials business sector. Under the booming development of China's aerospace industry, products benefit from strong downstream demand, and performance is expected to maintain rapid growth ④ The company's participation in Guangshen Changshen Everywhere In the field of CMOS sensors, there is broad scope for domestic replacement. Revenue and business scale have grown rapidly in recent years, and profitability has remained at a high level and continues to improve, which is expected to bring a certain return on investment to the company in the future.
Based on the above view, we expect the company's revenue for 2024-2026 to be 906 million yuan, 1,082 million yuan and 1,309 million yuan respectively, with net profit of 103 million yuan, 126 million yuan and 153 million yuan respectively, and EPS of 0.43 yuan, 0.52 yuan, and 0.64 yuan respectively. We gave a “buy” rating, and the target price was 33.00 yuan, corresponding to 77 times, 63 times and 52 times PE, respectively.
Risk warning: downstream demand falls short of expectations; product technology research and development falls short of expectations; market competition intensifies and profitability declines.