\u3000\u3000 Focus Lightings Tech Co.Ltd(300708) (300708)
The company’s fundamentals continued to improve: on January 29, 2022, the company issued its 2021 annual report. According to the report, the company realized a net profit attributable to the parent company of 177 million in 2021, with a significant year-on-year increase of 728.43%; The net profit attributable to the parent company after deducting non-profit was 41 million, with a year-on-year increase of 163.64%. Among them, the net cash flow from operating activities in 2021 was 465 million yuan. In 2021, the company has made significant improvement in both revenue scale and revenue quality.
The prosperity of LED chip industry remains the same, and the company’s production capacity expands steadily. By the end of 2021, the company’s LED chip production capacity was 19190000 pieces / year, with a year-on-year increase of 35.1%. The actual output was 18943866 pieces / year, realizing a capacity utilization rate of 98.72%. The company’s capacity scale has increased significantly for five consecutive years, with an annual compound growth rate of 17.4%. On this basis, it still maintained a capacity utilization rate of more than 95%. Looking forward to the future, the company’s capacity expansion plan is still being implemented steadily. By the end of 2021, the company’s capacity under construction is 7.1 million pieces / year, which ensures the basis of the company’s future revenue growth.
Mini / microled is becoming more and more mature, and the company is actively layout. Mini / microled has always been an important technical reserve of the company. In May 2021, the company successfully issued A-Shares to the public and raised 702 million yuan. The raised funds are mainly used to develop and manufacture high-end LED chip products including mini / microled, vehicle lighting and high-power LED. It is planned to add 9.5 million blue-green LED chips per year, including 8.28 million blue-green LED chips per year and 1.2 million miniled chips per year. At present, many miniled products of the company have been verified by customers and can be mass produced at any time.
Profit forecast and valuation of the company: it is estimated that the operating revenue of the company in 2022, 2023 and 2024 will be 2.32/2.56/2.81 billion yuan respectively, with a year-on-year increase of 15.6% / 10.0% / 10.0%; The net profit attributable to the parent company was 219 / 235 / 265 million yuan respectively, with a year-on-year increase of 23.5% / 7.5% / 12.6%. The corresponding PE in 2022 / 2023 / 2024 was 42.7 / 39.7 / 35.3 respectively, which was rated as “recommended”.
Risk tip: the prosperity of the LED industry is down, and the capacity expansion is less than expected
