\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 20 Advanced Fiber Resources (Zhuhai) Ltd(300620) )
The net profit attributable to the parent company in 2021 was RMB 13.86 billion, with a year-on-year increase of RMB 13.82 billion and a year-on-year increase of RMB 13.86 billion. The net profit attributable to the parent company in 2021 was RMB 13.82 billion, with a year-on-year increase of RMB 3.06 billion.
High growth of performance driven by fiber laser device business and lithium niobate business: the downstream laser industry maintained a high boom in 2021. As a leader in the subdivided field of high-power isolator and high-power fiber grating, the company continued to make breakthroughs in the field of high-power fiber laser devices. In 2021, the sales revenue of fiber laser device business reached 367 million yuan, with a year-on-year increase of 44.20%. On the other hand, with the production and operation of the subsidiary optical library Milan on the right track and turning losses into profits, the company’s lithium niobate business revenue reached 101 million yuan in 2021, with a year-on-year increase of 125.46%, and the gross profit margin of the business also increased to 45.83%.
The lithium niobate raised investment project is advancing steadily, and the progress can be expected: the company launched the lithium niobate raised investment project in December 2020. After it is fully put into production in 2025, 80000 lithium niobate modulator chips and devices will be added, and the complete chip design, production, packaging and testing capacity will be obtained, which will help the company develop towards the lithium niobate optical chip IDM mode. At present, the main project construction has been completed, and the internal decoration and The construction of supporting works and the construction of process platform are expected to release part of the production capacity by the end of the year according to the plan of the raised investment project. In the cutting-edge field of thin film lithium niobate, the overall progress of the company also ranks in the forefront of the industry. In addition, the company also expanded its technical backbone team in China and Italy, and continued to deepen the layout of dual R & D / dual production centers in China and Italy, so as to actively accumulate strength for lithium niobate business.
The lidar business is poised to expand the company’s future development space: the company’s products focus on the 1550nm light source scheme of lidar, which can provide traditional fiber laser devices (such as isolator, beam combiner, coupler, etc.) and the independently developed 1550nm light source module for TOF lidar applications based on erbium ytterbium Co doped fiber amplifier. At present, it has passed iatf16949 vehicle regulation certification, Relevant products have been supplied in small quantities to some key manufacturers outside China. At the same time, the company is also actively laying out the application market of FMCW lidar, and will develop the integrated light source module of narrow linewidth semiconductor laser and thin film lithium niobate modulator applied to FMCW lidar. In the future, with the accelerated volume of lidar, it is expected to create a second growth curve for the company.
Investment suggestion: we expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 210 / 311 / 452 million respectively, and the corresponding PE multiple is 29x / 19x / 13X. As a scarce supplier of lithium niobate optical chips and devices in China, the company will fully benefit from the large market space brought by thin-film lithium niobate and the opportunity to improve the competition pattern brought by domestic substitution in the future. The fixed increase and expansion of production is expected to accelerate the release of the company’s performance. At the same time, the lidar business is accelerated, which is expected to further expand the company’s future growth space and maintain the “recommended” rating.
Risk tip: the construction progress of lithium niobate production line is less than expected, the development of thin film lithium niobate is less than expected, and the industry competition is intensified
