\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 47 Wuhan Raycus Fiber Laser Technologies Co.Ltd(300747) )
In 2021, the revenue increased by 47.18% year-on-year, and the net profit attributable to the parent company increased by 60.17% year-on-year. The company achieved a revenue of 3.41 billion yuan in 2021, a year-on-year increase of 47.18%; The net profit attributable to the parent company was 474 million yuan, a year-on-year increase of 60.17%. In recent four years, the company’s revenue / parent company profit CAGR was 37.57% / 14.37%, maintaining rapid growth. The rapid growth of the company’s revenue in 2021 is due to the continuous breakthrough of the company’s key technologies, especially the good sales momentum of high-power products. In 2021, the company’s 30kW, 40kW and 100kW ultra-high power have begun to be officially sold. In the whole year, the sales of laser products above 10000 Watts exceeded 2380, an increase of 243% compared with 2020, and the sales of high-power lasers above 6000W exceeded 5900, an increase of 175% year-on-year.
The profitability of the company has stabilized and rebounded, and the market share has continued to increase for a long time. In terms of profitability, in 2021, the company’s gross profit margin / net profit margin was 29.35% / 14.72%, with a year-on-year change of + 0.28 / + 1.23 PCT, both gross profit margin and net profit margin increased, and the profitability continued to improve. From the expense side, the company’s sales / management / Finance / R & D expense ratio in 2021 was 3.91% / 1.98% / 0.08% / 8.43%, with a year-on-year change of -0.84 / + 0.20 / + 0.03 / + 0.90 PCT, and the expense control during the period was good. The technical level brought by the company’s continuous R & D investment continued to improve, making the company’s products continue to be recognized by the market and continuously improve the market share in China. During the reporting period, the company’s market share in China increased significantly, and the sales revenue exceeded the international leading enterprise IPG company for the first time in the third quarter. From the whole year of 2021, the market share of IPG / Ruike in China is 37.11% / 36.20% respectively, and the market share of the company and IPG in China is basically the same. The company has the core ability to reduce the cost of self-made upstream parts and has the space for continuous decline. In addition, the company actively arranges new businesses, continues to make breakthroughs in ultra-high power and products in new fields, and further improves the company’s core competitiveness. Therefore, it will have a long-term advantage in market competition in the future.
Risk tip: industry demand is down; Industry competition intensifies; The breakthrough of high-end application market was less than expected.
Investment suggestion: Wuhan Raycus Fiber Laser Technologies Co.Ltd(300747) is the leader of China’s fiber laser, and the trend of increasing revenue outside China remains unchanged. The core tracking indicators lie in the continuous breakthrough of high-power products and the continuous deepening and expansion of product application scenarios (market share) on the one hand, and the company’s cost control ability (profitability) under the background of the continuous price war in the industry on the other hand. We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 705 / 896 / 1131 million, corresponding to PE 26 / 20 / 16 times, maintaining the “overweight” rating.
