光芯片应用拓展，电信及数据中心市场需求增加。公司主要产品为中低速激光芯片，正在向高速光芯延展。近年来，公司产品下游应用场景不断扩展，需求量不断增加，同时对产品的速率、功率、传输距离也提出更高的要求。目前在电信市场、数据中心市场，公司产品都得到了较为广泛的应用，其中电信市场又可以细分为光纤接入和移动通信两个细分领域。电信市场：2024年上半年，5G、千兆光纤网络等新型基础设施建设有序推进。在光纤接入市场：随着千兆光纤网络升级，目前10G PON市场正在广泛的部署。数据中心市场：随着人工智能的快速发展，模型大小和数据集大小的增加，模型性能提高。训练大模型需要大量算力，导致对光器件的需求、能力的增加。在这样的背景下，数据中心市场高速率需求持续增加。Matters:
The company announced its 2024 semi-annual report. The report shows that in the first half of the year, the company achieved operating income of 0.12 billion yuan, a year-on-year increase of 95.96%; realized net profit of 0.011 billion yuan, a year-on-year decrease of 44.56%; and realized net profit deducted from non-mother of 0.009 billion yuan, an increase of 129.97% over the previous year.
Ping An's point of view:
Optical chip applications are expanding, and demand in the telecom and data center markets is increasing. The company's main products are medium- and low-speed laser chips, which are being expanded to high-speed optical cores. In recent years, the downstream application scenarios of the company's products have continued to expand, and demand has continued to increase. At the same time, higher requirements have been placed on the speed, power and transmission distance of the products. Currently, in the telecommunications market and data center market, the company's products are widely used. Among them, the telecom market can also be subdivided into two segments: optical fiber access and mobile communication. Telecom market: In the first half of 2024, the construction of new infrastructure such as 5G and gigabit fiber networks progressed in an orderly manner. In the fiber access market: With the upgrade of gigabit fiber networks, the 10G PON market is currently being widely deployed. Data center market: With the rapid development of artificial intelligence, model size and data set size increase, and model performance increases. Training large models requires a lot of computing power, leading to an increase in demand and capabilities for optical devices. Against this backdrop, the demand for high-speed data center markets continues to increase.
Revenue rose sharply in the first half of the year, and the data center business grew rapidly. In the first half of 2024, the company achieved revenue of 0.12 billion yuan, a year-on-year increase of 95.96%. Among them, the company's telecom market business achieved revenue of 0.11 billion yuan in the first half of the year, an increase of 94.61% over the previous year. The growth of this business segment has mainly benefited from market recovery. Coupled with the company's product line being further enriched, demand for traditional 2.5G and 10GDFB orders is picking up, and 10G EML products are being further promoted on the customer side. Orders have increased significantly compared to the same period last year. Although the company's data center and other businesses are small, they are growing rapidly. The data center and other businesses achieved revenue of 0.009 billion yuan in the first half of the year, an increase of 408.78% over the same period last year. In the first half of the year, some of the company's traditional data center market order demand recovered to a certain extent, and CW light source products for high-speed modules were shipped.
Gross profit margin declined sharply compared to the previous year, but after deducting non-profit, it still achieved relatively rapid growth. In terms of gross margin level, the company's product revenue is still dominated by the telecommunications business market, and medium- and low-rate products still account for a high share of revenue. As price competition continues to become more intense, and investment in production facilities and production costs increase, the gross margin level has declined. The company's gross margin was 33.42%, down 5.59 percentage points from the same period last year.
The company's expenses for the period were 22.80%, down 8.65 percentage points from the same period of the previous year; R&D expenses were 18.35%, down 3.17 percentage points from the same period of the previous year; sales expenses were 3.23%, down 1.69 percentage points from the same period of the previous year; and management expenses were 9.54%, down 11.22 percentage points from the same period last year, mainly due to the reduction in the company's equity payments. In the first half of the year, the company achieved profit of 0.011 billion yuan, a year-on-year decrease of 44.56%; realized deducted non-net profit of 9.4702 million yuan, an increase of 129.97% over the previous year. The net profit growth after deducting non-return to mother was significantly better than net profit. The main difference was due to a sharp reduction in government subsidies in the first half of 2024.
Investment advice: With the recovery of the downstream market, the company's revenue and performance are entering an upward channel. At the same time, in line with the demand for high-speed transmission in data centers brought about by AI, and the application of silicon light solutions is on the agenda, products such as high-speed EML and high-power lasers developed by the company will all benefit. Based on the company's market environment and latest financial performance, we adjusted the company's profit expectations. The net profit for 2024-2026 is estimated to be 0.06 billion yuan (previous value was 0.061 billion yuan), 0.092 billion yuan (previous value was 0.103 billion yuan), and 0.125 billion yuan (previous value was 0.148 billion yuan), corresponding to the closing price of August 30 PE of 125.0X, 80.8X and 59.9X, respectively, although in recent years the company has Performance has fluctuated greatly, but we are still optimistic about the company's track and market position, and maintain a “recommended” rating for the company.
Risk warning: 1) the risk of fluctuating demand in the downstream market; 2) the risk that technology evolves less than expected and the gap widens; 3) the risk of increased market competition.
