Juguang Technology (688167)
“Generating photons” and “regulating photons” constitute the core barrier to enter the lidar and open up 100 billion market space
The company is a leader in the field of upstream components in the laser industry. It has formed deep barriers in the field of high-power semiconductor lasers that “generate photons” and laser optical components that “regulate photons”. In 2015, the company led the formulation of national standards for semiconductor lasers, and its subsidiary limo won the “Oscar in the optical and electronic industry” Prism Awards. In the era of intelligent vehicles, the demand for high-speed lidar is growing rapidly from zero to one. Relying on its technical advantages, the company enters the lidar launch module market and is expected to take off with the help of the industrial trend. We estimate that the company’s net profit attributable to the parent company from 2021 to 2023 will be RMB 65 / 126 / 237 million respectively, the corresponding EPS will be RMB 0.72/1.40/2.63/share respectively, and the PE corresponding to the current stock price will be 297.4/152.1/81.2 times respectively. It will be covered for the first time and given a “buy” rating.
Laser upstream components have deep technical barriers and high customer stickiness, so as to build a solid basic market for the company
Since its establishment, the company has deeply cultivated the underlying technology and process of laser upstream components, occupied a place in the market with excellent product performance, and formed a stable basic disk. In terms of high-power lasers, the company has produced products with performance even better than global giants such as related companies by virtue of eutectic bonding, indium free packaging and other technologies and processes, which are widely used in scientific research institutes, lasers and other enterprises. In terms of laser optical components, the optical field homogenizer of the subsidiary limo is applied to the products of the world’s top lithography manufacturers, and other products are also widely used in relevant companies, Wuhan Raycus Fiber Laser Technologies Co.Ltd(300747) , Changguang Huaxin and other enterprises. At the same time, relying on the beam shaping ability of optical components, the application field of semiconductor laser components has also been greatly expanded, and the two businesses complement each other and develop together.
A hundred flowers bloom in the middle and lower reaches of the market, and the high-speed lidar has entered the first year of large-scale mass production
Based on the maturity of “generating photons” and “regulating photons”, the company began to enter the midstream module market with several times the market space. In the field of lidar, the company has widely distributed products of various spot types and laser transmitters, passed the verification of vehicle regulations, signed cooperation agreements with Continental group and company B, and obtained shares from Huawei, which will become the core beneficiary of the development of lidar market. In the field of medical beauty, the company signed an exclusive agreement with cyden, the UK, the originator of laser hair removal, to expand its layout in the face of the broad laser medical beauty market. In the pan semiconductor field, the company’s OLED solid-state laser annealing product delivery prototype broke the global dominant position of relevant companies in the past decade. The company’s high-tech barriers gradually move towards the realization of scale and performance.
Risk tip: new entrants change the competitive pattern, technological change, and the company’s performance is lower than expected.
