Incidents:
2024 semi-annual report: In the first half of 2024, the company achieved operating income of 439.4962 million yuan, an increase of 13.07% over the same period of the previous year; achieved net profit attributable to shareholders of listed companies of 109.5671 million yuan, a decrease of 0.63% over the same period of the previous year; realized net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss of 117.1438 million yuan, an increase of 11.91% over the same period of the previous year.
Comment:
The company accelerated the layout of the domestic market and achieved rapid growth in the domestic market. In the first half of 2024, overseas market demand was relatively weak, and export revenue fell 1.48% compared to the same period last year; the company seized the opportunity of domestic market recovery and the rapid development of ultra-fast lasers and launched a “one-stop” femtosecond solution to actively seek market share. Domestic sales revenue increased 24.32% over the same period last year. Crystal component revenue increased 20.03% over the same period last year. Among them, nonlinear optical crystal revenue increased 17.69% over the same period of the previous year, laser crystal revenue increased 23.64% over the same period of the previous year; precision optical components revenue increased 19.26% over the same period of the previous year; and laser device revenue decreased 3.16% from the same period of the previous year.
The company is a global leader in nonlinear optical crystal technology. 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 frequency doubling and mixing effects of nonlinear optical crystals on fundamental frequency lasers, broadening the application fields of lasers. The company's nonlinear optical crystals are widely used, and the company's market share of nonlinear optical crystals has reached 80%.
The company continues to strengthen technological innovation. In the first half of 2024, the company invested 43.511 million yuan in R&D expenses, an increase of 26.84% over the same period last year to develop new products and processes, and enhance the company's R&D capabilities. In June 2024, it was successfully approved to establish a postdoctoral research workstation to further strengthen cooperation and exchanges with domestic and foreign universities and scientific research institutions, jointly carry out research on scientific research projects, and promote innovation and development of core technologies. In terms of products, the self-developed 1550 nm ultra-high reflectivity mirror (also known as a super mirror, R> 99.999%) won the “2024 Laser Gold Award for New Product Bronze Award”; the 355nm large-format high-power telecentric field mirror was selected for the “Red Light Award - Laser Device Innovation Award”.
Investment advice and ratings: The company is the world's leading laser crystal company, with a global market share of 80% for nonlinear optical crystals. In the first half of 2024, the company expanded its domestic market layout and enhanced its ability to continuously innovate. We expect the company's revenue for 2024-2026 to be 8.6/12.04/ 1.324 billion yuan, respectively, and net profit to mother of 0.23/0.322/0.354 billion yuan, respectively, giving the company a “buy” rating.
Risk warning: Sales of the company's products fell short of expectations, leading to a decline in profits.