\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 90 Dongguan Yutong Optical Technology Co.Ltd(300790) )
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The company is basically stable and its performance has achieved rapid growth
According to the company’s announcement, from 2015 to 2021, the company’s operating revenue increased from 408 million yuan to 2.062 billion yuan, with an annual compound growth rate of 31.00%, and the net profit attributable to the parent company increased from 50 million yuan to 243 million yuan, with an annual compound growth rate of 30.15%. On the one hand, the growth of the company’s performance is due to the company’s continuous introduction of cost-effective new products to boost the overall gross profit margin and sales volume, on the other hand, it is due to
The company reduces production costs and improves its profitability through technology upgrading and automation upgrading. In terms of products, optical lens, as the company’s core product, accounted for 97.31% of the business revenue in 2021. In 2021, the revenue of fixed focus lens reached 1.368 billion yuan, a year-on-year increase of 46.68%, accounting for 66.37% of the total revenue, and the revenue of zoom lens reached 638 million yuan, a year-on-year increase of 33.03%, accounting for 30.94% of the total revenue. From 2015 to 2021, the annual compound growth rate of the company’s fixed focus lens reached 39.66%, and the gross profit margin remained at 17% – 25%; The compound annual growth rate of zoom lens is 21.12%, and the gross profit margin is maintained at 23% – 34%. Overall, the company’s core products maintain a relatively stable gross profit margin while maintaining high income growth, and the performance is stable.
While consolidating the basic sector of security lens, the company actively arranges new fields such as vehicle lens and smart home, and continues to launch new products with market competitiveness. In the future, with the further development of the company in new fields, the company’s performance is expected to continue to maintain high growth.
The level of gross profit margin and net profit margin was improved, and the profitability was enhanced
The gross profit margin and net profit margin of the company increased significantly in 2021, of which the gross profit margin achieved 26.47%, with a year-on-year increase of 4.72 percentage points; The net interest rate reached 11.77%, a year-on-year increase of 3.16 percentage points. At present, the company has formed a relatively complete product matrix of super starlight series, all-in-one machine series, 4K series, zoom series, starlight level fixed focus series, general fixed focus series, large angle fixed focus series, fisheye series and CS Series. It adopts the mode of “order by production” and direct sales. In production, it adopts the mode of “independent production of core components and outsourcing processing of edge products”, Continuously improving its gross profit margin and net profit margin will help to maintain the profitability of the company for a long time.
The operating cash flow continued to grow and the expense rate remained stable
In 2021, the operating cash flow of the company reached 313 million yuan, and the annual payment collection ability was good; From 2015 to 2021, the company’s operating cash flow remained positive, mainly due to the company’s good management ability and healthy sales model, which is conducive to the company’s long-term benign development. In terms of expense rate, the company’s sales expense rate in 2021 was 1.26%, a slight increase of 0.38 percentage points year-on-year; The rate of administrative expenses was 3.98%, a slight increase of 0.10 percentage points year-on-year; The R & D expense rate was 6.50%, a slight increase of 1.40 percentage points year-on-year. Overall, when the company’s performance maintained a high growth in 2021, the fluctuation of the company’s expense rate was small, and the sales management expense rate increased slightly, reflecting the stability of the company’s operation and strong cost control ability
The market pattern of security lens is good, and the company deeply binds high-quality downstream customers
The security lens market has benefited from the steady growth of demand and the trend of high-definition lens. The overall market scale has increased steadily and the market competition pattern is good, which is conducive to the stable operation of lens enterprises. The company’s deep binding with China’s leading security customers such as Haikang and Dahua is conducive to the long-term and stable development of the company’s performance. After the company’s downstream customers have gone through short-term destocking, the demand for security lenses is expected to rise further in the future; At the same time, the company actively maintains sound communication with downstream customers, makes continuous breakthroughs in products, and is expected to further increase its share in downstream core customers in the future, helping the company’s long-term growth
Benefiting from the new opportunities in the aiot era, the smart home security market has a broad space
At present, China’s 5g infrastructure has been relatively mature, relevant new technologies and new scenes continue to emerge, and the era of the Internet of things is expected to accelerate. As one of the main application scenarios in the era of the Internet of things, smart home has the characteristics of large market space, high product value and broad development space. Based on the original product matrix, the company actively arranges the Internet of things track, focusing on a series of home optical lens products such as smart door locks, home cameras and smart camera heads. With the continuous development of the Internet of things industry in the future, The company’s consumer lens business is expected to usher in a period of rapid growth, which will strongly boost the company’s performance.
Actively arrange vehicle lens related products, and build the second curve of the company’s development
Under the general trend of intelligent automobile, the ADAS market space of advanced automatic assisted driving maintains high-speed growth, and the vehicle lens market fully benefits. At present, the proportion of intelligent vehicle sales in the total vehicle sales is still low, and the degree of vehicle intelligence is still insufficient. In the future, with the further development of vehicle intelligence, the synchronous improvement of intelligent vehicle sales and the number of optical lenses carried by a single vehicle is expected to rapidly enlarge the market share of vehicle lens. The company has actively arranged the field of vehicle lens, carried out research and development and testing of relevant products, and made positive breakthroughs in a number of technologies. In addition, the company has actively cooperated with vehicle enterprises and Tier1 suppliers, which is expected to fully benefit from the high scenery of the vehicle lens Market in the future.
Profit forecast and investment rating
The company is deeply engaged in the security lens market, deeply bound with downstream head customers, and the basic market is relatively stable. At the same time, the company closely follows the general trend of the Internet of things and automotive intelligence, actively arranges consumer lens and vehicle lens, and creates the second growth curve of the company. It is estimated that the net profit of the company from 2022 to 2024 will be 305 million yuan, 395 million yuan and 458 million yuan respectively, corresponding to 20.86 times, 16.11 times and 13.90 times of PE, maintaining the “buy” rating.
Risk factors
Covid-19 epidemic spread impact, downstream customer destocking progress is less than expected, “5g + AI” development is less than expected
