Lens Technology Co.Ltd(300433) (300433)
Event: today, the company and Triumph Science & Technology Co.Ltd(600552) Group Co., Ltd., a wholly-owned subsidiary of China Building Materials Group Co., Ltd., signed a strategic cooperation agreement in Shenzhen to establish a strategic partnership between the two sides.
The announcement points out that in the future, the company will give full play to its advanced technology and industrial scale advantages in the field of glass processing, Triumph Science & Technology Co.Ltd(600552) group’s advanced technology advantages in the field of new photovoltaic materials, promote in-depth cooperation between the two sides in technology, materials and equipment in the field of new energy and new materials, and accelerate the resource selection and construction of photovoltaic glass projects, kiln construction The layout of the whole industrial chain of technological processing has been implemented.
Strategic cooperation is an important layout of the company’s established photovoltaic strategy. China building materials Triumph Science & Technology Co.Ltd(600552) group has significant technical advantages in the field of high-end photovoltaic glass engineering and equipment in China. It has designed or contracted hundreds of high-end float glass and Cecep Solar Energy Co.Ltd(000591) photovoltaic glass production lines, far ahead of China’s high-end glass engineering market share and China’s export high-end glass engineering market share. The strategic cooperation between Lansi and Triumph Science & Technology Co.Ltd(600552) group is a very important guarantee for the company’s entry into the field of ultra-thin glass of photovoltaic modules:
First of all, with the help of Kaisheng with rich experience, Lansi builds a photovoltaic ultra-thin glass kiln production line, which in itself well avoids the construction risk of Lansi in the front kiln field, so that Lansi can avoid many detours in the front construction and design direction. Kaisheng’s patents and technologies in photovoltaic glass and other related fields can be shared with Lansi, which will also enable Lansi to successfully avoid the patent traps and obstacles of competitors and focus on process technology and manufacturing in future development.
Second, Lansi focuses on photovoltaic ultra-thin glass with specifications below 2.0mm. CNBM is the only company in China that has built a photovoltaic glass kiln production line with specifications of 1.6mm and has batch supply capacity. The cooperation with China building materials Kaisheng can enable Lansi to start in the field of ultra-thin photovoltaic glass without losing any other traditional glass manufacturers, and has the advantage of late development. When Lansi announced the establishment of its subsidiary Hunan Lansi new energy Co., Ltd., some investors believed that Lansi entered the photovoltaic glass market too late. This view obviously lacked understanding of the company’s target market. In our previous in-depth report, it has been clearly pointed out that the 1.6mm or 1.2mm ultra-thin photovoltaic glass to be cut into by lance in the future is mainly for the double glass or double glass double-sided scheme. At present, there are few participants in China, but it is a very important advanced direction of high-efficiency photovoltaic cells in the future, and the growth space for replacing the single glass scheme is clear.
Third, it takes nearly a year for the kiln to reach mass production. In this range, Kaisheng group will supply raw photovoltaic glass chips and other materials for Lansi, and enjoy priority supply and the most preferential price. At the same time, it can also have the support of professional technical training and professionals, which can fully ensure that Lansi has not improved the layout of the previous kiln industrial chain, It can first obtain the best front competitive advantage in the industry, then give full play to the company’s strong process and technical heritage in the rear field, and pay for the ultra-thin glass products with full advantages in performance and price for downstream component manufacturers.
Fourth, the cooperation agreement clearly states that the cooperation with Kaisheng group, Select and build through resources (purchase of quartz, soda ash and other mineral deposits), kiln construction, technical processing and other whole industry chain layout. With the support of Kaisheng group and on the premise of opening up the whole industry chain, the technical iteration and digestion ability of Lansi consumer electronics field is expected to be fully copied to the photovoltaic ultra-thin glass field, and the company’s technical accumulation and achievements in ultra-thin, ultra-light, high permeability, high hardness and other micro technology fields This advantage is unmatched by traditional glass manufacturers. The company is expected to become a very important iterative driving force for ultra-thin photovoltaic glass in the dual glass field, rather than just an ordinary participant, which is also a key factor for us to be optimistic about the growth of Lansi in this field.
The strategic cooperation with China building materials will also become an important guarantee or foreshadowing in the front field of other materials of the company. In theory, if the kiln construction is carried out, the possibility of the company being stuck by other suppliers in the field of materials such as front glass will also be greatly reduced. In terms of technology, whether calendering method or float method is used at the back end of the kiln, it is only the choice of the actual process. In the future, for example, the scale of the company’s high-end light and thin electronic large-size automotive application glass (such as side window, wind baffle, sky curtain, etc.) will gradually increase, and it will be possible to face this situation sooner or later. Therefore, this cooperation has laid an important foreshadowing for the healthy development of the following years.
Fruit chain next year will be a clear year, and the assumption of high growth of the company’s own industry will be further consolidated. According to a report by Taiwan media DIGITIMES today, there is news from the Korean component industry that compared with 2021, Apple has decided to increase iPhone shipments in the first half of 2022 by 30% to 170 million, 30% higher than 130 million in 2021, and has informed major component suppliers of this decision that the annual shipments will challenge the target of 300 million. As the core supplier of fruit chain glass, metal, sapphire and ceramics, Lance will fully enjoy the dividends of this scale growth. In addition to the traditional business increment next year, Lance precision Taizhou will completely replace lance precision, which can become the middle frame business of mobile phones, and its contribution on the metal side is also commendable: through industry research, We can see that the share of Lansi precision Taizhou in Apple aluminum alloy frame is expected to increase from about 20% this year, It will further grow to 30% (about 60% Foxconn and the rest Jabil green dots). The continuous growth of the number of specifications delivered by lance precision Taizhou in the metal middle frames of iphone13 and 14 mobile phones and the proportion of independent supply of new cheap models in the metal middle frames in the first half of next year are important supports for this conclusion. The growth of lance precision Taizhou metal business next year will become an important point of increment and profit increase.
Profit forecast and rating: maintain the buy rating. Obviously, this strategic cooperation announcement is an important fulfillment and landing of the company’s previous photovoltaic strategy. Photovoltaic ultra-thin glass will form an efficient synergy with the previously laid out new energy vehicle components and glass related products in terms of resources, production and technology, and become the company’s two emerging tracks outside consumer electronics in the next decade. Taking advantage of its own process innovation, accumulation of technical reserves and unique understanding and precipitation of the application of glass as a material product, Lansi has effectively opened its own consumer electronics ceiling and seized the development opportunities in the field of new energy.
It is expected that the company will realize profits of RMB 5.562 billion, RMB 8.133 billion and RMB 10.662 billion respectively from 2021 to 2023, and the current valuation corresponds to PE of 18.79, 12.85 and 9.80 times. After the successful conclusion of the strategy of China building materials Kaisheng, we judge that Lansi will continue to make rapid progress in emerging fields such as photovoltaic ultra-thin glass, and the subsequent order landing scale and magnitude are very expected to maintain the company’s buy rating.
Risk tips: (1) due to the global spread of the epidemic or the global macroeconomic downturn, consumers’ purchasing ability is weakened, and the sales of new machines for key customers are less than expected; (2) the recovery and growth of Android models from 2021 to 2022 are less than expected; (3) the vicious price reduction of competitors leads to the decline of industry profit rate. (4) the promotion progress of vehicle mounted or photovoltaic glass in the company’s new energy field is less than expected.
