Established military enterprises, benefit from the prosperity of the industry is expected to continue to release performance. The predecessor of the company was the merger of Jiangxi established military factory 746 (now Lianchuangte Microelectronics) and 834 (now Northern Lianchuang Communications). It has a long history in terms of military semiconductor discrete devices and communication equipment, among which Ultra Microelectronics is a fixed-point manufacturer of military silicon junction field effect transistors in China and has been in a leading position in the industry. Downstream is widely used in aerospace and its tools and other fields. The major shareholder of the joint venture Northern Lianchuang Communications is the Northern Information Control Research Institute of the Arms Group, which currently holds 33% of the shares. It has long been engaged in the development of communication command and control products, and has realized the transformation from communication monomer switching equipment to subsystems and systems as a whole. It is expected to become a supplier of equipment informatization and system integration. Considering that the military information construction may be a top priority during the 14th five-year Plan period, it is expected that the company's military business is expected to benefit from the improvement of the prosperity of the industry.
Join hands with 10 Chinese Academy of Sciences to lay out the laser field, which is expected to become a new performance growth point for the company and 10 joint ventures of the Chinese Academy of Sciences to establish a laser technology industrialization operation company Zhongjiu Optoelectronics (55%), and Zhongjiu Optoelectronic Industry Research Institute. With the "industrial project + research institute" mode and relying on 10 leading advantages in semiconductor laser and all-solid-state laser research fields, we will continue to promote the transformation of relevant scientific research achievements. According to shanghai e interaction, the company's main semiconductor laser product is the pump source, which is one of the core components of the laser. at present, the company has invested in the construction of six pump source production lines, and has successfully broken the long-term technical blockade abroad. at the same time, the company is also expected to take the pump source products as a starting point to extend upward to laser chips and downward to laser equipment and weapons equipment, which is widely used in the field of military and civilian products. According to e-interaction, the company's laser business is in good condition and product orders are being delivered one after another. in addition, with the gradual appearance of economies of scale after the completion of the company's industrial park, the cost side will continue to decline, and there may still be room to improve product profitability. it is expected to become an important performance increment of the company in the future.
Enter the high temperature superconducting industry, or further thicken the company's performance.
According to the announcement, Jiangxi Lianchuang Superconductor (holding 40%) megawatt superconducting magnet induction heating device has been successfully developed, which is mainly used in metal heating industries such as high-end aluminum profiles and titanium alloys, compared with traditional heating methods. it can realize the fast heating of large-size metal workpieces, and the heating speed is faster and the temperature uniformity is better, so it is suitable for aerospace and other industries that require high quality of raw materials. It is expected that the industry will have broad application prospects in the future. according to the Jiangxi channel of the people's Daily, Lianchuang Superconductor has established a cooperative relationship with Chinalco and Nanshan Aluminum, as well as a number of other large domestic aluminum alloy and titanium alloy processing enterprises. in the future, the market space may be gradually opened, and the company's high temperature superconducting industry has officially entered the industrialization stage, which is expected to become an important profit growth point of the company in the future and further thicken its performance.
Traditional businesses such as backlight and intelligent controller are growing steadily. Tamping basic plate company is the backbone enterprise in the field of optoelectronic devices. The main products include LED devices, backlight and related products, displays and modules, as well as intelligent control devices for household appliances. 1) backlight products: subsidiary Co-Chuangzhiguang is the core backlight product supplier of many well-known mobile phone brands in China. In addition, according to the announcement, Lianchuang has set up a joint venture with local state-owned assets in Nanchang, which may help to expand the company's production capacity and further open up room for growth. 2) Intelligent controller products: subsidiary Hualian Electronics (holding 50.01%) is a supplier of well-known enterprises at home and abroad, such as Electrolux and Gree Electric Appliances, and its current market share is stable. It is expected that with the further expansion of the application field of downstream products and the company's measures to reduce costs and increase efficiency, the future performance is expected to maintain steady growth. In addition, the company also holds a 22.04% stake in Hongfa Diansheng, which benefits from its steady growth in performance and is expected to contribute stable investment income to the company in the future.
Investment suggestion: the company, formerly a veteran military factory in Nanchang, has a long history of supporting military industry, and is expected to benefit from the high-profile demeanor of the military industry to accelerate its release performance during the "14th five-year Plan" period; at the same time, the company joined hands with ten high starting points of the Institute of physical Sciences to cut into the laser track, which is expected to become an important performance increment. In addition, the company has actively laid out the field of high temperature superconductivity and has been in deep contact with a number of domestic aluminum and titanium alloy enterprises. Civilian products companies in the field of backlight and intelligent controller products have accumulated deep, continue to consolidate the basic plate. We estimate that the return net profit of the company from 2020 to 2022 is 2.74,4.66 and 606 million yuan respectively, and the corresponding valuation is 39, 23 and 18 times respectively. For the first time, it was given a "overweight-A" rating.
Risk hint: military orders are not as expected; progress in laser and superconducting fields is not as expected; civilian orders are not as expected.
