\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 47 Wuhan Raycus Fiber Laser Technologies Co.Ltd(300747) )
Event: the company issued the annual report of 2021.
High power and ultra fast products are produced in large quantities, and the scale of revenue will expand rapidly in 2021
In 2021, the company achieved a total operating revenue of 3.41 billion yuan, with a year-on-year increase of 47.18%, mainly due to the continuous recovery of the manufacturing industry in the first half of 2021 and the strong demand of the laser industry. In the second half of 2021, the company continued to increase its market share. By product: ① in 2021, the company achieved a revenue of 2.587 billion yuan, with a year-on-year increase of 47.36%, which is the largest source of rapid growth of operating revenue, Mainly due to the rapid volume of high-power fiber lasers, in 2021, the company sold more than 2380 lasers above 10000 watts, a year-on-year increase of + 243%, and more than 5900 high-power lasers above 6kW, a year-on-year increase of + 175%; ② Ultrafast laser processing is the segment track with the fastest growth rate in the laser industry in recent years. In 2021, the company’s ultrafast laser achieved a revenue of 112 million yuan, a year-on-year increase of + 103.55%. The subsidiary Guoshen optoelectronics sold about 600 picosecond / femtosecond lasers. Among Chinese companies, ultrafast laser has the highest shipment volume and market share. The customer base has expanded to more than 100 enterprises, and the industry’s expansion ability has been further enhanced; ③ The revenue from technology development services reached 213 million yuan, a year-on-year increase of + 182.93%, continuing the rapid growth trend and further promoting the rapid expansion of the overall revenue scale; ④ The revenue of pulsed fiber laser was 337 million yuan, with a year-on-year increase of – 0.68%. With the verification and small batch trial of pulse products in high-end industries such as pole ear cutting, crystal silicon rod grooving and photovoltaic application, it still has good growth prospects.
Price reduction and impairment affect the quality of operation, and the profitability showed a quarterly downward trend in 2021
In 2021, the company realized a net profit attributable to the parent company of RMB 474 million, with a year-on-year growth rate of + 60.17%, slightly higher than the growth rate at the revenue end, and the company’s profitability improved to a certain extent. In 2021, the company’s net sales profit margin was 14.72%, with a year-on-year growth rate of + 1.23pct: ① in 2021, the company’s overall gross profit margin was 29.35%, with a year-on-year growth rate of + 0.28pct, of which the gross profit margins of continuous fiber laser and pulse fiber laser with high revenue were 29.71% and 9.23% respectively, with a year-on-year -3.18pct, the gross profit margin of ultrafast laser is 52.47%, with a year-on-year increase of + 1.17pct. The increase in the proportion of ultrafast laser revenue with high gross profit margin is an important reason for the slight increase in the overall gross profit margin of the company; ② In 2021, the company’s period expense rate was 14.36%, with a year-on-year increase of + 0.32pct, and the sales / Management (including R & D) / financial expense rate changed by -0.84 / + 1.12 / + 0.04pct respectively. The increase of management expense rate was mainly due to the increase of R & D investment. In 2021, the company’s R & D expense was 286 million yuan, with a year-on-year increase of + 65.37%, and the R & D expense rate reached 8.39%, with a year-on-year increase of + 0.92pct; ③ The company’s asset impairment loss in 2021 was 35 million yuan, which was lower than that in 2020 (40 million yuan), which played a certain role in promoting the improvement of profitability in 2021. Quarterly, the net profit margins of 2021q1, Q2, Q3 and Q4 companies were 20.32%, 15.96%, 17.37% and 7.07% respectively, and the overall profitability showed a downward trend. We judged that the main reason was the fierce price competition in the laser industry in 2021, and the company’s cost reduction did not fully offset the impact of the current price decline. It can be verified from the change of gross profit margin. The overall gross profit margin of 2021q1 company was 35.95%, and that of 2021q4 company decreased to 29.04%, The low level of Q4 net interest rate is not only directly affected by the price reduction, but also related to R & D expenses, equity incentive amortization expenses, etc.
High power products continue to expand in large quantities & welding cleaning applications, promising the long-term development prospects of the company. While consolidating the leading position of low and medium power lasers, the company actively arranges high-power and ultrafast lasers, explores new application scenarios of laser processing, and further opens up the growth space of the company. The company’s high-power laser technology has reached the international leading level. 30kW, 40kW and 100kW ultra-high power have been officially sold. The sales volume of 10000 watt laser has increased significantly in 2021. In new application fields, the company’s products are sold or cooperated in projects in new energy power batteries, rail transit, automobiles and spare parts, shipbuilding and other industries, and the cleaning products form batch cooperation with many industry leading customers. In the field of ultrafast laser, the company has continuously enriched relevant products, which are widely used in display and panel glass cutting, automobile glass cutting, thick glass cutting and other fields. The market sales volume has gradually increased, which continues to inject new impetus into the company’s business performance.
Profit forecast and investment rating: considering the impact of the prosperity of the manufacturing industry, we predict that the net profit attributable to the parent company from 2022 to 2024 will be 6.73 (down 3.6%), 9.08 (down 2.5%) and 1.251 billion yuan respectively, and the corresponding dynamic PE of the current stock price is 26.3/19.5/14.1 times respectively. As a local laser leader, the company is expected to achieve high-quality and rapid development and maintain the “buy” rating.
Risk tip: the laser price war continues, and the prosperity of the industry is declining.
