\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 90 Dongguan Yutong Optical Technology Co.Ltd(300790) )
Event: in 2021, the company achieved an operating revenue of RMB 2.062 billion, a year-on-year increase of 40.11%, a net profit attributable to the parent company of RMB 243 million, a year-on-year increase of 91.44%, and a net profit not attributable to the parent company of RMB 235 million, a year-on-year increase of 101.30%.
The high outlook of the downstream + the release of new production capacity promote high income growth, improve the structure and enhance profitability. Throughout 2021, after experiencing the impact of the global covid-19 epidemic, the importance of security has been highlighted, and the overall security market has experienced high-quality growth. The production capacity of the projects invested by the company in the early stage has been effectively released with the help of the high scenery of the downstream, and the revenue has ushered in high-quality growth. Of course, the security boom has declined since the fourth quarter, but with the advent of the era of 5g and the Internet of things, The security market is expected to upgrade to Ultra HD and upgrade from traditional public monitoring to pan security. The overall security market still has room for further growth.
At the same time, the company has continuously improved its overall profitability through product structure optimization, including the increase in the proportion of high-end and high-pixel (more than 4 million) lens shipments, as well as the outsourcing of production links with low added value and low automation, and achieved remarkable results. In 2021, the company’s gross profit margin increased by 4.72 PCT compared with 2020.
Overweight vehicle lens, waiting for the front loading market breakthrough. In 2021, the company took the vehicle lens as the key layout direction: set up a wholly-owned subsidiary, proposed Yutong automotive vision, equity incentive for the core technicians of vehicle vision and Yutong automotive vision staff, and improve the recruitment of vehicle lens R & D personnel. Although the above-mentioned measures have increased the short-term sales cost rate and R & D cost rate, they have significantly strengthened the company’s competitiveness in the field of vehicle lens. At present, The company has mastered the production technology of aspheric glass lens, the key component of vehicle lens, and has successfully entered the aftermarket through the certification of automobile quality management system. It is actively strengthening cooperation with core customers to make a breakthrough in the forward market. The company aims to have the sales of vehicle front lens not less than 3 million yuan, 36 million yuan and 11 million yuan from 2022 to 2024. Under the trend of automobile intellectualization, the on-board vision market will usher in a relatively clear incremental elasticity. The company has continuously increased its size in the past year to enhance its card position advantage. The on-board lens business is expected to become a new driving force for the growth of the company.
The home consumption lens business is ushering in the dividend of the Internet of things era. At present, the company has made some achievements in expanding the domestic consumer lens Market: while serving the traditional major security customers Haikang fluorite and Dahua Le orange, it has developed new customers such as puffin, Xiaomi Xiaoyi, 360 and to link. In the era of aiot and smart home, the lens will be used as an indispensable data acquisition entrance for smart doorbell, sweeping Siasun Robot&Automation Co.Ltd(300024) , smart home appliances and smart home, The industry growth dividend of such smart home products will bring new growth points to the company.
Profit forecast and investment rating: maintain the buy rating. The short-term fluctuation of scene bearing in security city in recent two quarters does not change the long-term growth trend. The trend of intelligent home and automobile will bring new growth impetus to the lens industry. In the future, with the benefits of the company’s layout of household consumption and vehicle lens and the gradual release of fixed increase project capacity, the overall revenue and performance will increase steadily. It is expected that the net profit of the company from 2022 to 2024 will be 302 million, 379 million and 467 million respectively, The current share price corresponds to pe21 05, 16.80 and 13.62 times, maintaining the buy rating.
Risk tips: (1) the growth of security lens demand and the slowdown of HD trend; (2) Intensified competition leads to the decline of the company’s profitability; (3) The market development of household consumption and vehicle lens is less than expected.
