In the field of automotive optics, automotive lenses drive growth. Benefiting from the accelerated penetration of ADAS and the development trend of automobile intelligence, in-vehicle cameras are showing a sharp rise in volume and price. As a leading manufacturer of ADAS automotive lenses in China, Lianchuang Electronics has outstanding advantages in the field of automotive lenses. Imitation glass technology is leading the country, aspherical glass lens production technology is outstanding, and production capacity reaches 3-4K/month.
Lay out in the field of high-definition optics, deeply tied to leading customers. The company is actively expanding applications in the field of high-definition optics. Its ultra-clear wide-angle camera has been widely used in sports cameras, panoramic cameras, VR/AR, etc., and has locked in market share in the field of high-definition optics through in-depth cooperation, and has accumulated deep accumulation in the AR/VR field. The company separately supplies high-end action camera lenses and panoramic imaging modules to GoPro, the world's leading sports camera customer, and Insta360, a leading panoramic video customer, respectively. The company is expected to benefit from the growth of the AR/VR industry.
Deeply cultivate mobile phone optics, and build a moat with glass-plastic hybrid solutions. The mobile phone optics business is stabilizing, and there is room for future growth in the penetration of multi-camera solutions. The company's glass-plastic hybrid solution is technologically advanced and recognized by downstream companies. The company is expected to overtake cars in curves through glass-plastic mixing. The company is actively deeply tied to leading ODM manufacturers such as Wentai, Huaqin, and Longqi to achieve steady growth in the mobile phone optics business.
It triggered the industry to enter the automotive sector, benefiting from the growth of smart cars. Using the technology developed in the touch display industry over the years, the company actively optimizes the industrial layout and focuses on developing smart cars, which shows that the industry continues to develop steadily, which will benefit from the intelligent development of automobiles. Close cooperation with clients such as Shentianma and Wentai.
Profit forecast and investment advice: We expect the company's net profit of 2022-2024 to be 302 million yuan, 503 million yuan, and 653 million yuan respectively, corresponding to PE69.4/41.6/32.1 times (based on 2022.08.23 closing price). There is huge room for growth in automotive cameras. Lianchuang Electronics accounts for a high share of automotive business, and has already entered into in-depth cooperation with many major customers. For the first time, coverage gave a “prudent increase in holdings” rating.
Risk warning: Fundraising projects fall short of expected risks, high customer concentration, expansion of product application fields falling short of expectations, and downstream expansion falling short of expectations