\u3000\u3000 Lianchuang Electronic Technology Co.Ltd(002036) (002036)
Event: on February 15, the company issued the draft of 2022 stock option and restricted stock incentive plan, which plans to grant 22 million stock options to 7 senior executives and 328 core personnel, accounting for about 2.07% of the total share capital, and the exercise price is 20.17 yuan / share; It is proposed to grant 11 million restricted shares to 7 senior executives and 326 core personnel, accounting for about 1.03% of the total share capital, and the grant price is 10.09 yuan / share. At the same time, the company issued the draft of the second phase of the employee stock ownership plan, with no more than 18 participants and plans to subscribe for a total of 100 million yuan of shares.
Equity incentive shows confidence and guides the improvement of vehicle optical performance: the company is a leading enterprise in optics and touch display. Its optical lens, camera module and touch display integrated products are mainly used in mobile phones, cars, sports cameras and other fields. The performance assessment objective of this equity incentive is: the main business income of the company in 2022 / 2023 / 2024 is not less than 10 / 12 / 14 billion yuan, of which the vehicle optical revenue is not less than 5 / 10 / 1.5 billion yuan, or the net profit attributable to the parent company in 2022 / 2023 / 2024 is not less than 90% / 160% / 200% higher than that in 2020. Among them, the company put forward clear revenue guidelines for the on-board optical business, demonstrating its confidence in the rapid development of the business.
The trend of automotive intelligence is clear, and the on-board optical business is bright: benefiting from the acceleration of automotive intelligence, the demand for on-board lenses has increased significantly. According to the calculation of Asahi big data, the global shipment of vehicle optical lenses will be about 320 million in 2020 and is expected to exceed 400 million in 2021. The company’s on-board optical customers include ADAS platform providers such as Mobileye, NVIDIA and Huawei, Tier1 manufacturers such as Valeo, conti and APTIV, as well as vehicle manufacturers such as Tesla, Weilai and Xiaopeng. In 2021, the company’s vehicle optical business developed rapidly. The revenue in the first three quarters increased by 453.38% year-on-year, and the revenue in Q3 increased by 620.06% year-on-year, realizing the simultaneous rise of volume and price. Due to the high demand for vehicle lens, in June 2021, the company changed the purpose of fund-raising and transferred all the 390 million yuan originally used for the industrialization project of 260 million high-end mobile phone lenses per year to the industrialization project of 24 million smart car optical lenses and 6 million image modules per year. After the change, the project raised a total of 690 million yuan. In October 2021, the company announced the establishment of a project company with the main body designated by Hefei high tech management committee to implement the vehicle optical industrial park project, and planned the annual production capacity of 50 million vehicle lenses and 50 million vehicle image modules. With the release of new production capacity, it is expected that vehicle optics will continue to maintain a high growth trend.
The head of optics was promoted to the chairman, and the core backbone of optics was promoted to the vice president: in December 2021, the board of directors of the company was changed, Zeng Jiyong, the head of optical business, was promoted to the chairman and the director of the strategic committee, and the core backbone of optical departments such as Hu Junjian, Li Liang, Wang Zhuo and Wang Tao were promoted to the vice president. The results of this general election further show that the company attaches great importance to and has confidence in the development of optical business.
Investment suggestion: we estimate that the company’s revenue from 2021 to 2023 will be 9.887 billion yuan, 11.859 billion yuan and 13.996 billion yuan respectively, the net profit attributable to the parent company will be 284 million yuan, 490 million yuan and 692 million yuan respectively, and the EPS will be 0.27 yuan, 0.46 yuan and 0.65 yuan respectively, giving the “Buy-A” investment rating.
Risk warning: downstream demand is less than expected; The progress of optical business is less than expected; Capacity release is less than expected; Risk of reduction of major shareholders, etc.
