Xisheng, a leading domestic medium and high-power LED driver company, is mainly engaged in the R & D, production and sales of medium-and high-power LED drive power products, and is one of the main suppliers of medium-and high-power LED drive power products in China. The LED drive products produced by the company cover the range of 10W-760W. According to the power range of the products, they can be divided into three types: high power, medium power and low power. The company's terminal products are widely used in urban roads and bridges, highways, tunnels, airports and other large outdoor LED lighting facilities, as well as industrial factories, warehouses and other LED industrial lighting facilities, at the same time, it is expanding to new application fields such as plant lighting.
The company's performance is growing rapidly. In 2020, the company's total revenue was 676 million, an increase of 19.01% over the same period last year, and its net profit reached 99 million yuan, an increase of 18.60% over the same period last year.
Strong scientific research strength to ensure the long-term competitiveness of the company
The company's core competitiveness has been continuously improved in recent years, and now it has mastered a series of key core technologies and key capabilities of independent research and development. The company independently grasps many core technologies such as constant power drive technology of LED drive power supply, multi-function dimming technology, lightning surge suppression technology, programmable technology and so on.
The company's products adopt advanced circuit technology, combined with innovation in materials and structure, ensuring high performance in conversion efficiency, power factor, THD, waterproof, lightning protection, high and low temperature, electromagnetic compatibility, life and so on. The company attaches great importance to R & D innovation and continues to increase investment in R & D. from 2018 to 2020, the company's R & D expenditure has increased by an average of 17.16%. At the same time, the company has set up a R & D technical team of more than 160 people, accounting for 10.27% of the company's total staff. The company's R & D department has long focused on conquering the key technologies related to LED drive power, studying new materials and structures, storing a number of forward-looking technical achievements for the company and establishing a relatively perfect intellectual property system.
The plant lighting market has great potential and brings growth opportunities.
LED plant lighting is an innovative application in the field of agricultural semiconductor lighting, and its application is still in its infancy. LED lighting will gradually replace the traditional light source because of its high light efficiency, low heat, small size, long life and many other advantages. LED plant lighting in China started late, but developed rapidly, and has the potential of popularization and application in facility horticulture, livestock and poultry breeding, fishery and plant protection and so on. In 2019 alone, the market scale of LED plant lighting in China increased by 27.58% compared with the same period last year. Although the plant lighting industry is still in the initial stage of development, the pulling effect on the performance of the company has begun to appear. According to the company's secretary, from January to March 2021, the company's income from plant lighting driving power was 112.2224 million yuan, accounting for 46.51% of business revenue, up from 12.30% in 2020.
Investment suggestion: we expect the company's net return profit from 2021 to 2022 to be 253,342 million yuan, covering for the first time, corresponding to 2022, giving the target share price 80.30 yuan, giving "hold" rating risk tips: other technological innovations lead to limited pull of plant lighting on the company's business, outdoor and industrial LED shipments fall short of expectations, company over-reliance on single trade risk, international trade friction risk.