Juguang Technology (688167)
Event: on February 25, 2022, the company released the annual performance express of 2021, and the company realized an operating revenue of 476 million yuan, an increase of 32% at the same time; The net profit attributable to the parent company was 68 million yuan, an increase of 94% at the same time; Deduct non net profit of 49 million yuan, an increase of 148% at the same time.
High performance, growth exceeding market expectations, and multi-point flowering of downstream applications. The company’s net profit and net profit after deduction are higher than the previous forecast center, with high performance and good development trend of all businesses. The total assets of the company were 2.5 billion yuan, an increase of 207% over the beginning of the reporting period, and the owner’s equity attributable to the parent company was 2.3 billion yuan, an increase of 271% over the beginning of the reporting period, mainly due to the IPO funds raised during the reporting period. The business line has blossomed at multiple points and entered the harvest period of profit growth: 1) semiconductor laser: it has achieved growth in application fields such as medical health and advanced manufacturing, and expanded new businesses such as prefabricated gold tin materials, heat sink and pan semiconductor process; 2) Laser optics: Dongguan Juguang added back-end production, optimized coating / cutting links, significantly increased the shipment of beam collimation series products, and made breakthrough progress in light field homogenizer; 3) Lidar: all projects have been promoted in an orderly manner, and automotive applications have increased accordingly.
Upstream basic capability – generating & regulating photons. In the upstream component field, the “neck” link and the small market scale are difficult to enter and exit. Over the past ten years, Juguang has focused on the field of components and materials, strengthened the two basic capabilities of the upstream, and the company’s basic market is stable. The company has independently developed and formed core technologies such as eutectic bonding technology, thermal management technology, thermal stress control technology, interface material and surface engineering thermal management, and semiconductor laser packaging technology is the world leader. Limo is famous for its micro optical design ability. It has won Prism Awards, one of the highest honors in the global photoelectric industry. It has the world’s leading photon regulation technology. The company independently develops and forms line spot shaping technology, beam conversion technology, light field homogenization technology (for lithography) and wafer level synchronous structured laser optical manufacturing technology.
Middle reaches application expansion – lidar star sea. Focus on three areas: ① pan semiconductor process: stably provide products such as light field homogenizer in lithography exposure system, and the main customers are Zeiss, etc; In addition, it is extended to the fields of optical systems such as semiconductor integrated circuit wafer annealing / flat panel display laser stripping, laser annealing / semiconductor integrated circuit detection. ② Household medical health: it mainly produces household rejuvenation and household skin cleansing laser modules and homogenizer products, and has signed a framework agreement of about 800 million yuan with cyden in the UK; ③ Lidar: it has become the company’s first large-scale midstream realization application scenario. According to the company’s reply, it is estimated that the company’s lidar related revenue will be 540 million yuan in 23 years, accounting for 45% of the revenue. At present, the company has completed the research and development of all solid-state flash lidar area light source and one-dimensional rotating mirror linear light source, and won the fixed point of continental group (about 400 million yuan framework agreement) and company B. among them, flash area light source products have been stably shipped on Lexus ls500 series.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 21 to 23 years is RMB 68 / 122 / 221 million, corresponding to 194 / 108 / 60 times of PE. Considering that the company is a scarce target of lidar, it is expected to benefit from a breakthrough in the industry from 0 to 1. Maintain a “recommended” rating.
Risk tip: the development of lidar industry is less than expected, the expansion of the company’s technical route is less than expected, the risk of laws and regulations and the landing of commercialization are less than expected.
