Event: on April 10, 2021, the company released its annual report 2020. the data show that the company achieved revenue of 3.827 billion yuan (12.12% year-on-year) in 2020, net profit of 270 million yuan (+ 38.58%), and non-return net profit of 210 million yuan (+ 32.43%).
Comments:
Business transformation is beginning to bear fruit, and the quality of income has been greatly improved. In 2020, the company optimized the industrial structure and continuously improved the quality of income on the basis of basically stabilizing the scale of income, with a net profit growth rate of 38.58%. In terms of products, the revenue of the company's intelligent controller series products was 1.542 billion yuan (+ 3.32%), and the net profit increased by 24.68% compared with the same period last year. The revenue of backlight and application products was 1.312 billion yuan (- 29.8%) affected by COVID-19, but the application scene was expanded. At present, large-scale backlight projects such as vehicle, PC, industrial control and other large-scale backlight projects have been introduced to undertake Honda 12.3-inch vehicle backlight project. After the comprehensive transformation and upgrading of optoelectronic communications and intelligent equipment cables, stripping off the low gross profit margin business such as optical cable and RF cable OEM, the revenue was 639 million yuan (+ 6.91%), and the comprehensive gross profit margin of the plate was greatly increased to 14.4% (+ 6.6pcts). The upgrading speed of semiconductor laser series and aerospace microelectronic components products was accelerated, achieving a gross profit margin of 26.76% and increasing 14.68pcts.
The industrialization of laser and superconductor has advanced rapidly, and a 0-1 breakthrough has been achieved. In terms of the laser industry plate, the company has completed 140W military grade pump source product finalization and mass production, realized small batch trial production and 2000 sets of military pump source order task delivery, and independently developed 300W pump source module products. is actively layout 400W pump source and kilowatt laser equipment product research and development. In terms of superconducting industry, the company has completed the development and delivery of the world's first megawatt high temperature superconducting induction heating equipment, the overall technical level of the equipment has reached the international leading level, and the follow-up industrialization process of high temperature superconducting is worth looking forward to.
The company has increased its equity investment and cut into Beidou business. According to the annual report, the company has set up a new Rongbei Chuanglian subsidiary, whose business includes satellite navigation services, satellite remote sensing data processing, satellite communications services, satellite remote sensing application system integration, and so on. Whether the company can successfully cut into the Beidou industry chain needs to be further verified.
Investment advice: the company's cash flow is constantly abundant, the debt structure is effectively controlled, and the asset quality continues to improve. We predict that from 2020 to 2022, the company will achieve an operating income of 47.56 million yuan, a net profit of 4.43 million yuan, a corresponding EPS of 1.27 million yuan, and a corresponding PE of 24.3 picks up to 12.54 times. The risk of maintaining the "buy" rating suggests that the industrialization of superconducting equipment is not as expected, the competition in the LED market is intensified, and the epidemic situation is repeated.
