Incident: Fujing Technology released its 2022 annual report. The company's revenue in 2022 was 768 million yuan, an increase of 11.57% over the previous year; the company's net profit was 226 million yuan, an increase of 18.3% over the previous year.
Comment:
The company leads the world in nonlinear optical crystal technology, with a market share of 80%. The company mainly has three types of nonlinear crystals: LBO, BBO and KTP. After applying nonlinear optical crystals, lasers can generate lasers of various wavelengths due to the multiplier and mixing effects of nonlinear optical crystals on base-frequency lasers, broadening the application fields of lasers. The company's nonlinear optical crystals are widely used, and the market share of the company's nonlinear optical crystals has reached 80%.
The controlling shareholder of the company, Physical Structure, has KBBF and LSBO crystal patents, leading the world in technology. The controlling shareholder of the company, Physical Structure, has patents for KBBF and LSBO crystals, which are the world's most advanced in technology. KBBF and LSBO crystals are the core components for manufacturing deep UV lasers. Deep UV lasers have the characteristics of short wavelengths. Using deep UV lasers, high-precision processing can be performed, and they are widely used in semiconductors, instruments, laser processing equipment and other fields in the industrial field.
The downstream application fields of laser technology continue to expand, and the performance of the company's core products has improved. The company's nonlinear optical crystals have excellent performance and play a key role in expanding laser applications. The continuous expansion of laser applications of different wavelengths in new fields has led to a rapid increase in the company's demand for nonlinear optical crystals and bonded crystals.
Among them, Haitai Optoelectronics, a holding subsidiary of the company, made a net profit of 46.93 million yuan, an increase of 90% over the previous year.
Based on laser crystal processing technology, the company's optical components have entered the stage of refinement. The company is leading in laser crystal processing technology and advanced equipment to support the production of optical components for laser companies. When the company was established, Photon focused on the production of ultra-precision large-scale optical devices and carried out R&D tests in the fields of semiconductors, biomedicine and high-end testing, which is expected to achieve major breakthroughs.
Investment advice and ratings: The company is the world's leading laser crystal company. It has the dual advantages of technology and equipment. The company's nonlinear optical crystals market share 80%. Using the advantages of existing technology, new laser crystal products are continuously developed, and expanded to optical component products to lay out ultra-precise high-end application fields. We expect the company's revenue for 2023-2025 to be 1,109/1,48/2,023 million yuan, respectively, and net profit of 291/376/506 million yuan respectively. Referring to the expected price-earnings ratio of the comparable company China and Micro Company in 2023, the company was given 50 times PE. The company was given 50 times PE. The company's reasonable valuation in 2023 was 14.5 billion yuan, giving the company an “increase in holdings” rating.
Risk warning: The risk that the company's product sales fall short of expectations, leading to a decline in profits.