Juguang Technology (688167)
Horizontal layout “generating photons” + “regulating photons” basic ability
Dr. Liu Xingsheng, the founder of the company, has the working background of Ennai / coherence / Corning / Xi’an Institute of Optics and mechanics, It started with semiconductor lasers (generating photons). The company has independently developed and formed core technologies such as eutectic bonding technology, thermal management technology, thermal stress control technology, interface materials and surface engineering thermal management. The semiconductor laser packaging process is the world leader. In 17 years, it acquired German limo and expanded laterally to laser optics (regulating photons), the upstream basic capacity generation & regulating photon layout is perfect. Limo is famous for its micro optical design ability. It has won the Prism Awards, one of the highest honors in the global photoelectric industry, and has the world’s leading photon regulation technology. The company independently develops the forming line spot shaping technology, beam conversion technology and light field homogenization technology (for lithography) and wafer level synchronous structured laser optical manufacturing technology.
Longitudinal layout lidar, pan semiconductor process, home medical beauty and other midstream applications
Consolidate the two basic capabilities of “generating photons” and “regulating photons”, move towards large-scale commercialization in the midstream, and focus on three applications: 1) lidar: it will become the first large-scale midstream realization application scenario. The company mainly provides emission modules and optical components for downstream machine manufacturers, According to the company’s reply, it is predicted that the lidar business revenue will reach 540 million yuan in 2023 (including the framework agreement of about RMB 400 million in mainland China). 2) Pan semiconductor process: widely layout lithography, line spot system and integrated circuit detection, enter TSMC’s industrial chain, obtain orders from Shanghai microelectronics and Beijing Huazhuo Jingke, and domestic alternative logic. 3) home medical beauty: in the gradual increase of home hair removal, the company has signed a framework agreement of about RMB 800 million with cyden company in the UK. In 19 years, the company Signed a lidar framework agreement with Continental Germany with a total amount of about 400 million yuan.
The inflection point of business development has arrived, and listing opens a new journey
The company has focused on the semiconductor laser industry for many years and mastered the key links of upstream semiconductor laser components and laser optical components. At present, it is at the turning point of large-scale commercialization in the midstream of the industry. In December 21, the company’s IPO was successful, and the listing opened a new journey. The raised funds plan to invest in Dongguan micro optics and application project of Juguang Technology (phase I project), lidar launch module industrialization project, R & D center construction project and supplementary working capital project.
Investment advice
It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 63 / 117 / 227 million, corresponding to pe288 / 155 / 80 times. The increment of lidar’s contribution to the company’s business mainly starts from 23 years. The company’s peg in 2023 is 0.85, slightly higher than the median value of comparable companies of 0.61. Considering that the company will benefit from the breakthrough of lidar industry from 0 to 1, the growth is still significant after 23 years, and it is in the valuation switching period at the end of the year. It is covered for the first time and is given a “recommended” rating.
Risk statement
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 commercialization are less than expected.
