Focus on the core business and divest the camera modules of major customers. On February 8, 2020, the company issued an announcement on the signing of the acquisition intention Agreement, transferring its business assets related to the supply of cameras to specific overseas customers to Wentai Technology. The divestiture of major customer camera modules will help the company to focus on optics and microelectronics and other areas such as consumer electronics and vehicles, continuously optimize the company's internal resource allocation and business structure, and increase the proportion of high value-added products, improve the company's overall operating efficiency and profitability, and promote the company's long-term development.
The capacity utilization rate of optical optoelectronic products has been improved. In the first half of 2020, the company's sales revenue of Android camera modules reached 11.712 billion yuan, down 0.02% from the same period last year, and shipments reached 292 million, an increase of 24.51% year-on-year, with a comprehensive gross profit margin of 11.08%. The sales revenue of non-Android video module products reached 3.673 billion yuan, an increase of 95.95% over the same period last year, the number of shipments reached 55 million, an increase of 30.34%, and the comprehensive gross profit margin reached 10.94%, an increase of 11.24% over the same period last year. Thanks to the growth of optical prosperity, the shipments of camera modules and optical lenses continue to grow, and the optical leading position has been strengthened.
The Android camera market is promising. In 2019, global smartphone shipments were 13.71 units, and Android phones accounted for more than 85% of smartphone shipments. In the iterative process of the update of smartphones, the upgrade of cameras is obvious, among which, the new models with multiple cameras, 3D Sensing, off-screen fingerprint recognition and other functions have attracted the keen attention of consumers and brought more market space for suppliers. In recent years, relying on the advantages of optical innovation and the core customer advantages accumulated in the consumer electronics field, the company has realized the upgrade from single shooting to double shooting and multi-camera modules, and has become the mainstream supplier of dual-shooting and multi-camera modules in the industry. the shipment volume of camera module ranks first in the world.
Embrace the new market for car lenses. Thanks to the rapid development of the Internet and self-driving, the market for car lenses has a broad prospect. According to statistics, the global car lens market shipped about 145 million in 2019, a year-on-year growth rate of more than 40%. The company's smart car business group focuses on the integration of body electronics, intelligent cockpit and intelligent driving products and technology, and the standardization and platform of car cameras, intelligent cockpit, automatic parking and other products. The company steadily promotes the smart car business, laying the foundation for the company's long-term development.
Investment suggestion: the company's revenue from 2020-2022 is estimated to be 481.9 billion yuan, 51.19 billion yuan, and the net profit from its mother is 8.8 billion yuan, with a "recommended" rating.
Risk hints: (1) upstream raw material price fluctuation risk; (2) downstream demand is lower than expected; (3) unrealizability of profit forecast and inapplicability of valuation methods.