Relying on optical processes such as coating, the company has gradually accumulated a complete optical product matrix based on businesses such as periscope microprisms and mobile phone filters, and has begun to achieve qualitative changes in business resources for major customers. At the same time, the company has begun to achieve qualitative transformation in vehicle/AR optical direction, focusing deeply on emerging industries such as automotive HUD and AR optical waveguides, and is expected to provide a continuous driving force for the company to develop the second and third steps of growth curves in addition to traditional power dissipation optics.
Apple and major customers benefit from optical innovation: While microprisms/coated filters drive the main business upward, Apple and Huawei continue to lead innovation in mobile phone optical functions. As mobile phone main camera CMOS continues to bottom out and periscope cameras are fully implemented in Apple/Android brands, the installation rate of components such as coated filters and microprisms is expected to increase further. The company has already accumulated deep customer resources in the two types of components, and is expected to quickly benefit from further upgrades in mobile phone optical hardware and consolidate the basic market of its electrostatic optical business.
Automotive and AR optics expand new growth points: AR+AI is expected to enable end-side innovation in consumer electronics, automotive optics, represented by HUD, and AR optics with AR optical waveguides as the core device will effectively support the company's new growth curve in the medium to long term, respectively. Vehicle HUD and AR optical waveguides are in the early stages of product development. With the batch implementation and transformation of car-side fixed-point projects and the gradual confirmation of overseas customer solutions on the AR side, the driving force for the company's new business growth is expected to gradually contribute to the business side.
Profit forecasting and valuation
We expect the company's 2024-2026 revenue to be 62.66/ 73.30/ 9.085 billion yuan, respectively, up 23.44%/16.98%/23.94% year on year; realized net profit to mother will be 843/10.29/ 1,275 million yuan, respectively, up 40.39%/22.06%/24.00% year on year. Referring to comparable companies, the average PE for 2024-2026 was 30/23/19X. Considering the company's high market share and stable leading position, and the overall penetration of new products in the industry has gradually begun to accelerate, the first coverage was given a “buy” rating.
Risk warning
Downstream customer technology route changes risk, smartphone terminal shipment recovery falls short of expectations, targeted transformation progress of in-vehicle projects falls short of expectations, and AR product iteration falls short of expectations.