Beijing Fjr Optoelectronic Technology Co.Ltd(688272) (688272)
Results of the third quarterly report: the company achieved a revenue of 220 million yuan in the first three quarters of 2021, with a year-on-year increase of 3.57%; The net profit attributable to the parent company was 47.47 million yuan, a year-on-year increase of 12.81%; Deduct the net profit not attributable to the parent company of 46.64 million yuan, with a year-on-year increase of 11.13%; The basic earnings per share was 0.83 yuan, compared with 0.80 yuan in the same period last year. 2021 is the first year of the 14th five year plan. Affected by the development process of the overall military equipment procurement plan of the 14th five year plan, the company’s military orders have decreased accordingly and the sales growth has slowed down.
Positioning midstream supporting facilities and rapid growth of military products business: the company’s business focuses on infrared thermal imaging technology. Its products include movement, infrared thermal imager and photoelectric system. At the same time, it has the ability to produce refrigeration and non refrigeration equipment. Military products business positioning midstream support, cooperate with customers, that is, the overall unit participates in the bidding projects organized by the military; The company supplies military products to the overall unit, which processes and produces the final products and sells them to the military. The strategic positioning suitable for the company’s development stage and the leading technical advantages in the field of detector drive and image processing have enabled the company’s military products business to achieve rapid growth in the past. From 2018 to 2020, the company’s operating revenue increased from 87.68 million yuan to 330 million yuan, with a growth rate of more than 80% for two consecutive years. Military products business accounted for a high proportion, which was the main driving force of performance growth.
With profound technology accumulation, the company is optimistic about the market space of industrial testing: the company’s military or civil products technology can be copied quickly. The tif1024 series handheld temperature measuring thermal imager independently developed and produced is the highest resolution temperature measuring thermal imager used for industrial testing in China. In the field of industrial detection, thermal imaging technology has been applied in power temperature measurement, and gas detection is still an emerging market. Based on the optimistic market prospect of thermal imaging technology in the field of industrial testing, the company established a wholly-owned subsidiary Luoyang thermal technology in 2020 to focus on the business of industrial testing products. After the completion of “industrial testing product R & D and industrialization construction project”, one of the first raised investment projects, it can form an annual output of 3200 thermal imaging products. With the future project construction and capacity release, it will strongly support the performance growth of the company’s civil products.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 101 / 168 / 286 million respectively, and the corresponding PE of the current stock price is 44 / 26 / 15 times. The company is a rising star of infrared thermal imaging equipment of Chinese private enterprises. Its products are oriented to high-end and based on the midstream of military products business. The design experience of military infrared thermal imager can be quickly extended to the civil field. Compared with similar products, the company’s industrial detection products have significant advantages and broad market space in the future. For the first time, it will be rated as “overweight”.
Risk warning: military products business is greatly affected by national policies and may fluctuate greatly; The risk that the expansion of civil products business is less than expected; The risk that the construction progress of industrial testing projects is less than expected.
