Yingnuo Laser is the leading manufacturer of laser microprocessing solutions in China, the company has ploughed the solid-state laser field for many years, has invested heavily in research and development, and continues to expand the application market in the field of microprocessing. The company has strong technological advantages and excellent product performance, and some of its core products are in the leading level in the world. In the future, with the growth of demand in the field of microprocessing, the company has a broad space for development.
China's leading solid-state laser supplier: Yingnuo Laser is the leading solid-state laser equipment in China, and its products mainly include nanosecond ultraviolet lasers and ultrafast lasers. The company's main business income has a compound growth rate of 6.90% in the past three years. In 2020, the revenue affected by the COVID-19 epidemic was 339 million yuan; in terms of profit, the net profit returned to its mother in 2020 was 66 million yuan, which remained relatively stable in the past three years. In the first half of 2021, the company expects revenue of 193.84 million yuan to 215.38 million yuan, an increase of 45.28% to 61.42% over the same period last year, and estimated net profit of 35.55 million yuan to 42.46 million yuan, an increase of 126.05% to 169.99% over the same period last year.
Industry week expects to stabilize and rebound, and the company focuses on R & D and innovation to boost the development of microprocessing: the global laser industry is gradually stabilizing and is expected to return to growth in 2021. The domestic laser industry continues to grow, compared with Europe, the United States, Japan and other developed countries, China's laser market still has room for development in the future. At present, the global manufacturing industry is on the road of precision, integration and intelligence, and micro-machining technology is becoming one of the technological trends of precision manufacturing. Yingnuo Laser has been ploughing nanosecond solid-state lasers and other products for many years, constantly accelerating the research, development, promotion and localization of high-power, deep ultraviolet nanosecond lasers and ultrafast lasers. Downstream customers include leading manufacturers such as AAC Technologies Holdings Inc. and Ted Lasers. The company's R & D investment in each phase remains at a high level and increases year by year, leading most companies in the industry, accumulating certain technology and customer advantages.
The fund-raising project focuses on the improvement of core competitiveness: the company plans to issue 38 million new shares and intends to raise 485 million yuan. The funds are mainly used for solid-state laser and laser application module production and technology R & D center construction and upgrading, while replenishing liquidity. Further expand the company's solid-state laser production capacity and promote the development of laser processing solutions to improve the core competitiveness and market share.
Valuation analysis: we predict that the annual main income of Yingnuo Laser in 21-22-23 will be 420, 532 and 668 million yuan, the net profit of return to its mother is 0.82 million, and the corresponding EPS 0.54 plus 0.66 will be 0.80 yuan. The company's 2020 return net profit is 65.6 million yuan, which is comparable to the company's average static PE valuation of 66.54 times in 2020. Considering that the size of the company is still small and the historical performance growth rate is relatively steady, but the profitability is better than the comparable company, the static PE valuation range of the company is 45-50 times, the corresponding market value range is 29.52-3.28 billion yuan, and the target price per share is 19.47-21.63 yuan. The dynamic PE range of the company's forecast net profit in 2021 is 36.00-40.00 times.
Risk tips: epidemic uncertainty risk; innovation risk; industry competition risk; cross-border operation risk; product price decline risk.