Lianchuang Electronics released its semi-annual report for 2022: in the first half of 2022, the company achieved operating income of 4.873 billion yuan, an increase of 1.30% over the same period last year, and a net profit of 103 million yuan, an increase of 6.13% over the same period last year. Main points of investment
Continued efforts have been made in the field of optical components, and business income has increased sharply.
Benefiting from technological innovation and the improvement of consumer demand, as well as the rapid development of automotive ADAS systems, the company maintained good revenue growth in each segment of its main business in the first half of 2022, with revenue from touch display business of 2.117 billion yuan, down 9.95% from the same period last year; revenue from optical components business was 1.507 billion yuan, up 49.43% over the same period last year, of which car lens and vehicle image module business increased significantly by 910.30% over the same period last year. In terms of profitability, the company achieved a gross profit margin of 11.06% in the first half of 2022, an increase of 2.54pct over the same period last year, of which the gross profit margin of the optical components business reached 27.51%, an increase of 9.55% over the same period last year. The market competition in the touch display module business intensified, and the gross profit margin decreased significantly to 4.65%, down 2.01% from the same period last year. In terms of expenses, the rates of sales, management and financial expenses of the company were 0.37%, 3.17% and 2.30% respectively, of which sales expenses increased by 44.14% compared with the same period last year, mainly due to an increase in staff and workers' salaries and management expenses by 37.54% over the same period last year. mainly due to the increase in the amortization of the company's assets and equity incentives. In terms of R & D expenses, the company's R & D expenditure in the first half of 2022 was 183 million yuan, an increase of 56.82% over the same period last year. The company further strengthens the development of new technologies, new products and new processes, actively introduces high-end technical personnel, and empowers the company to keep up with the market and continuous innovation.
The demand for vehicle optical devices is increasing, and the market space for vehicle cameras is huge.
With the maturity and penetration of 5G and AI technology, as well as the improvement of electric permeability of new energy vehicles and vehicles, the accelerated development of intelligent hardware will bring incremental demand for electronic parts. Due to the rapid development of automobile intelligent driving assistance technology, the upgrading of ADAS functions and the rise of new forces of cars, the market demand for on-board cameras and other on-board optical devices continues to increase. No matter the number of on-board cameras carried by bicycles or camera specifications are increasing, according to the forecast of forward-looking Industrial Research Institute, the global shipments of on-board cameras will reach about 724 million in 2025.
The optical industry has a strong growth momentum, and the market share of product structure optimization continues to increase.
In the first half of 2022, the company's optical business still maintains the industry leading position of high-definition wide-angle lens and panoramic image module, and cooperates deeply with motion cameras such as GoPro, DJI, Shadow Stone, AXON, UAV, panoramic camera and police monitoring, as well as Huawei's well-known customers in the fields of intelligent monitoring and intelligent driving, and its market share and industry position have been further consolidated and improved. At the same time, the company increases the R & D and sales of on-board optics and modules, and in the field of on-board optics, the company continues to deepen its strategic cooperation with Mobileye and Nvidia, expanding the market share of on-board lenses in Valeo, Conti, Aptiv, ZF, Magna, etc., and expanding the scale of cooperation with domestic well-known terminal car manufacturers. In the first half of 2022, the 8m ADAS imaging module cooperated with NIO Inc. Automobile produced goods smoothly. In addition, in order to meet the downstream needs of vehicle optics and focus on the intelligent and electric direction of vehicles, the company has rapidly expanded the production capacity of in-vehicle lenses and image modules, and the construction of Hefei vehicle Optical Industrial Park is being accelerated. In the field of mobile phone lenses and modules, the company promotes the supply of glass-plastic hybrid lenses and continues to cooperate with Huaqin, Wentai, Longqi and other ODM manufacturers. In the field of touch display industry, the company constantly adjusts the layout of touch display industry and optimizes the product structure. In 2022, the company will continue to carry out in-depth cooperation around major customers with upstream panel resources, such as BOE and Shen Tianma, to enrich the integrated product structure of touch and display and improve the technical level of the products.
Profit forecast
The forecast company's income from 2022 to 2024 is 105.91 yuan, 122.68 yuan and 13.841 billion yuan respectively, and the EPS is 0.27,0.49,0.70 yuan respectively. The current stock price corresponds to 66,36 and 25 times of PE respectively, maintaining the "recommended" investment rating. ▌
Risk hint
Downstream market demand fluctuation risk, raw material price fluctuation risk, industry competition intensification risk and so on.