Crystal Optoelectronics: Deeply involved in consumer electronics optics for more than 20 years, gathering five major business forces with steady growth
The company was founded in 2002 and listed in 2008. It is one of the earliest companies in the industry to go public. At present, the company has built five major business segments: optical components, thin film optical panels, semiconductor optics, automotive electronics (AR+), and reflective materials. The product form has been transformed from a single optical component to a coexistence of components, modules and solutions. The products have been widely used in smart phones, cameras, smart wearables, smart homes, security monitoring, automotive optoelectronics, and metaverse AR/VR.
Product ballast stone: Continuously deepen customer cooperation, continue to increase terminal share, and expand the scale of various types of business infrared cutoff filters: upgraded to absorption and reflection composite types, benefiting from mobile phone manufacturers' imaging innovation. In 2023, the company achieved remarkable results in promoting absorption and reflection composite filters. They have been successfully introduced into all mainstream terminals in the domestic market, and the domestic market share has increased dramatically.
Thin film optical panel: A new fist product that has become one of the main suppliers to major customers. The business accounted for 36.43% of revenue in 2023; the company deepened cooperation with major North American customers and expanded its business scale; in addition, the company has overseas delivery capabilities.
Industry trend vane: Innovation makes optics more powerful, optics makes the world more beautiful, and focuses on cutting-edge innovative achievements Consumer electronics: The company's microprism products used by major customers have better imaging results and higher value. In June 2023, the company's No. 1 engineering microprism project was successfully mass-produced. The company became the world's first mass production supplier of quadruple reflection prism modules, demonstrating its technical strength.
Automotive Optoelectronics: Build best-in-class products such as HUD and build a secondary growth curve. 2023 ushered in a strategic milestone. The company shipped more than 200,000 HUD units throughout the year, with AR-HUD ranking first in the domestic market share.
Metaverse optics: A full technical path layout has been formed, and it has one-stop optical solution capabilities. The company focuses on the development of reflective and diffractive optical waveguide technology, and is striving to lay the foundation for industrialization by achieving technological breakthroughs in design, process and inspection around mass production.
Core competitiveness: The dual advantages of technology research and development and customer resources, unswervingly focusing on the three application scenarios The company has built the first growth curve represented by consumer electronics, laying the foundation for the company's business; the second growth curve represented by automotive optoelectronics to achieve breakthrough development; and the third growth curve represented by metaverse optics to obtain business opportunities.
As a leading enterprise in the field of optics, the company attaches great importance to investment in technology research and development. The total R&D investment from 2021 to 2023 reached 1.02 billion yuan, with an average R&D cost rate of 7.46%. The company adheres to the concept of openness, cooperation and globalization, coordinates the allocation of global resources, and continues to deepen its international layout. The company has accumulated a broad customer base and maintained close supply relationships.
Profit forecasts and investment suggestions:
On the one hand, the company's basic consumer electronics business is operating steadily. In addition, in the context of mobile phone manufacturers focusing on imaging technology innovation, filter upgrades, microprism, and the expansion of the thin-film optical panel terminal category will all strongly guarantee the stability of the company's consumer electronics performance. On the other hand, the company's automotive optoelectronics layout has begun to bear fruit. With the continuous optimization of customer structures and the gradual strengthening of cost control, it is worth looking forward to the exploration space for the business scale and profit quality of this sector; in addition, the company attaches great importance to developing and developing core waveguide devices around the metaverse optics field mass production Precise investment has succeeded in replicating products such as microprisms and automotive optoelectronics in the long term, and has built another competitive product around industry leaders. We are optimistic about the company's medium- to long-term growth, covered for the first time, and gave the company a “buy” rating.
Risk warning
1. Demand for consumer electronics such as mobile phones falls short of expectations; 2. New technology products such as periscope cameras, HUD, and lidar have fallen short of expectations; 3. Industrialization of optical waveguide technology achievements falls short of expectations; 4. Risk that profit forecasting assumptions are not true or fall short of expectations.