\u3000\u3000 Focus Lightings Tech Co.Ltd(300708) (300708)
Event:
The company issued the annual report of 2021. In 2021, the company realized a total operating revenue of 2.009 billion yuan, a year-on-year increase of 42.83%, a net profit attributable to the parent company of 177 million yuan, a year-on-year increase of 728.43%, a deduction of non net profit of 41 million yuan, a turnaround from loss to profit over the previous year, and an annual gross profit margin of 16.89%.
Comments:
The expansion of production capacity and the optimization and adjustment of product structure drive the continuous growth of the company's main business
The company's revenue and net profit increased significantly, mainly due to the synchronous increase of production capacity and product unit price. On the one hand, the company's production capacity increased from 14.2 million pieces / year in 2020 to 19.19 million pieces / year, and the subsequent capacity under construction was 7.1 million pieces / year; At the same time, the company's capacity utilization rate and production and marketing rate remained high, which were 98.72% and 99.15% respectively in 2021. On the other hand, the company continued to promote high-end LED chips represented by miniled, automotive flip chip, high-quality lighting and plant lighting. The gross profit margin of LED chip products increased by 6.79% over the previous year, and the single chip price increased by 5.09% over the previous year. In addition, due to the success of the company's fixed increase funds, the scale of interest bearing liabilities was effectively controlled and the interest expenditure was reduced by about 27 million yuan.
Strengthen technological innovation, promote product upgrading, and continuously release the capacity invested by raising funds
The company has reached the first-line level in China in the field of high-end LED chips such as high light efficiency, backlight, high voltage and flip chip. Miniled products have been verified by customers. Silver mirror products have passed the design samples. The high bandwidth GaN based visible light communication chip jointly developed with the semiconductor Research Institute of the Chinese Academy of Sciences is progressing smoothly. With the newly purchased MOCVD equipment and chip manufacturing equipment in place, the mass production of new products can be expected. At the same time, it maintained the leading operating efficiency level in the industry, adhered to cost reduction and efficiency increase, and its inventory turnover rate, accounts receivable turnover rate and other operating indicators ranked first in the industry. In the future, with the continuous release of production capacity of Suqian base, the company's profit is expected to increase steadily.
Profit forecast and investment suggestions
We estimate that the net profit attributable to the parent company from 2022 to 2024 will be 274 million / 331 million / 367 million yuan, with a year-on-year increase of 54.60% / 20.99% / 10.81%, corresponding to pe33 / 27 / 25X. Based on the PE level of comparable companies in the industry, the company will be given 35xpe for 22 years, corresponding to the target price of 17.62 yuan, maintaining the rating of "overweight".
Risk tips
The downstream demand is lower than the expected risk; Risk of product price decline; Production capacity release is less than expected risk.
