Optoelectronic components "Little Giant", with four core technologies and full matrix product line: the company positioning optical communications, optical fiber laser industry chain upstream, with four core technologies and customized optical device products to break the industry. In addition, the founding team of the company is deeply involved in operation and has rich technical and management experience. At present, the company is actively developing a number of new tracks, steadily promoting various fund-raising projects to accelerate the increase of production capacity, and developing rapidly to a precision optical platform company.
The operating performance has grown steadily, the cost control ability is excellent, and the profitability continues to be good: revenue reached 262 million in the first three quarters of 2022, an increase of 19.62% over the same period last year. The net profit returned to the mother was 45 million, an increase of 15.53% over the same period last year. It mainly benefits from the continuous recovery of demand in the optical communication market. From the gross profit point of view, the company's 2022Q2 gross profit margin is significantly higher than the previous month, which is expected to further improve; from the cost point of view, the overall expense rate of the company is relatively stable, and the ability of cost control is better than the industry average.
The development of optical communication and fiber laser is improving, and the emerging fields are ready for development: thanks to the acceleration of the localization of high-end optical devices, the rapid development of the data communication market, the commercialization and large-scale deployment of 5G, the prosperity of the optical communication industry is high; the demand for fiber laser is high, the application field is wide, and the fiber laser industry is developing well. At the same time, the demand in the emerging areas downstream of the biomedical industry chain continues to upgrade, optical components will also take advantage of the situation to develop rapidly, and the company is expected to enjoy the rapid growth dividend of the industry.
Build a moat of core technology, lay out a new track to seek new increments: based on four types of core technologies, the company can mass produce technologically leading scarce products such as molded glass aspheric lenses at low cost; relying on strong vertical integration and cost control capabilities, continue to provide high-performance optical devices for many downstream fields. In addition, the company cooperates with a number of well-known manufacturers at home and abroad, actively layout biomedical, AR, lidar and other emerging tracks, and set up subsidiaries in North America to create the second growth curve.
Investment suggestion: we predict that the company's 2022-2024 net return profit will be 0.70max 0.98 trillion, and the current share price corresponding to PE is respectively times that of 50-36-26. In view of the development of the company's optical components and optical fiber devices business, the future performance is expected to achieve rapid growth, covering for the first time and giving it a "buy" rating.
Risk hints: the industry competition aggravates the risk, the market development is less than expected, the products in new areas are less than expected, and the risk of loss of core technical personnel.