Consumer electronics, automotive electronics, and metaverse layouts are beginning to bear fruit, and the 2023 performance was impressive.
In 2023, the company's revenue was 5,076 billion yuan, +16.01% year-on-year; net profit to mother was 600 million yuan, +4.18% year-on-year. Among them, revenue from optical components was 2,446 billion yuan, +21.11%; semiconductor optics revenue was 108 million yuan, -62.46%; thin-film optical panel revenue was 1,849 million yuan, +17.77%; automotive electronics (AR+) revenue was 291 million yuan, +54.39% year over year; and revenue from reflective materials was 287 million yuan, +4.12% year over year.
The micro prism module was successfully mass-produced, driving the company's overall gross margin to remain stable. In 2023, the company achieved gross profit margin of 27.81%, +0.91pct year on year; net profit margin was 12.16%, -1.43pct year on year.
Among them, the gross margin for optical components was 30.66%, +4.50pct; the gross margin for semiconductor optics was 35.32%, -4.94pct; the gross margin for thin-film optical panels was 25.48%, +3.37pct; the gross margin for automotive electronics (AR+) was 11.72%, -25.90pct; and the gross margin for reflective materials was 29.22%, -5.96pct yoy.
Firmly adhere to the AR/VR strategic direction and provide customers with one-stop product services. In the age of AR glasses, companies can supply large single products represented by optical waveguides, and optical components in optical machines, 2D and 3D cameras, and biometrics to provide customers with one-stop product services. With the launch of AppleVision Pro and the All in AI trend presented by various terminal manufacturers, the trend of AI+AR glasses will gradually arrive, and the dividends of the times represented by AR glasses will gradually be released.
Strengthen the strategic card position of in-vehicle AR-HUD, and have an excellent customer and product structure. The company entered the automotive optoelectronics sector as Tier 1 at the end of 2020. Through 3 years of business development, the company has maintained close business cooperation with customers such as Changan Deep Blue, Great Wall, Geely, Jaguar Land Rover, Dongfeng Rantu, and Changan Mazda, and has targeted nearly 20 projects. In terms of products, in addition to HUD, a complete module integration solution, the company also supplies automotive optical components, such as HUD, lidar, and optical components in 2D and 3D cameras.
The company maintains deep cooperation with leading smartphone customers, and the recovery of mobile phones is expected to drive the company's performance.
The consumer electronics sector focuses on innovation opportunities brought about by transformation and upgrading in high-end Android smartphones, especially business opportunities such as the company's leading absorption and reflection composite filter products, prism products, black film products, and chip coating products with very technical advantages.
Profit forecast: We expect that the company's net profit for 2024/2025/2026 will be 793/9.88/1,173 billion yuan, respectively, corresponding to the April 26 share price PE of 24/19/16 times, respectively, covered for the first time, and given a “buy” rating.
Risk warning: New product development falls short of expectations, downstream demand falls short of expectations, and XR development falls short of expectations.