\u3000\u3 Guocheng Mining Co.Ltd(000688) 686 Opt Machine Vision Tech Co.Ltd(688686) )
Events
The company released its annual report for 2021: the operating revenue was 875 million yuan, a year-on-year increase of 36.2%, and the net profit attributable to the parent was 303 million yuan, a year-on-year increase of 24.0%. The revenue of the company’s new energy industry is fast, the application field of 3C electronics industry is expanded, and the revenue is steady. The growth rate of net profit was lower than that of revenue, mainly due to the increase in the proportion of new energy revenue with relatively low gross profit margin, which lowered the overall gross profit margin; At the same time, the company continued to increase the expansion of R & D and sales personnel, and suppressed the level of short-term net interest rate. The company’s net operating cash flow inflow was 173 million yuan, a year-on-year increase of 80.6%; The company invested 137 million yuan in R & D, a year-on-year increase of 79.4%.
Key investment points
The proportion of new energy industry revenue increased significantly
The company’s new energy industry revenue was 258 million yuan, with a year-on-year increase of 242%. The company’s products are applied to defect detection, dimension measurement and positioning of key processes. The company’s products and technologies have been recognized by industry leaders Contemporary Amperex Technology Co.Limited(300750) , Byd Company Limited(002594) , honeycomb and other enterprises. Benefiting from the rapid development of new energy vehicles, the explosion of demand for power batteries and energy storage batteries, and the promotion of new battery technologies such as 4680, China’s lithium battery terminal capacity continues to increase, which will continue to improve the market space of the company’s machine vision products in the field of new energy. The company’s 3C industry revenue was 518 million yuan, a year-on-year increase of 4.39%. The demand of 3C product end customers for machine vision is from assembly plant to module plant, and the penetration rate of the company’s machine vision products in relevant industrial chains continues to increase; The scope of cooperation between the company and key terminal customers has been continuously expanded, and the product line of cooperation has been expanded from mobile phones to tablets, headphones, watches, etc. Considering that Apple’s smartphone may be upgraded this year to promote the batch updating of 3C automation equipment, the demand for the company’s machine vision system in the 3C field is expected to increase significantly this year.
The machine vision industry is still a golden track
China has become one of the fastest growing markets of machine vision in the world. According to China Machine Vision Market Research Report, the scale of China’s machine vision industry increased from 10.180 billion yuan in 2018 to 14.42 billion yuan in 2020. Thanks to the rapid development of new energy, automotive electronics, semiconductors and other new economies, the manufacturing industry is transforming to high-speed, high-precision and high-quality, and the scale of the visual industry will still be further improved. The report predicts that the market scale will increase from 18.1 billion yuan in 2021 to 29.6 billion yuan in 2023, with an average annual compound growth rate of 28.0%. As a leading supplier of machine vision core parts in China, the continuous expansion of the industry scale provides an important opportunity for the company to achieve leapfrog development. Compared with foreign-funded enterprises, the company has a better understanding of Chinese customer demand and market, can provide flexible and customized services, quickly respond to customer demand, short supply cycle, obvious cost advantage, and the market share is expected to increase year by year.
Profit forecast
It is estimated that the company’s revenue from 2022 to 2024 will be 1.16 billion yuan, 1.53 billion yuan and 1.99 billion yuan respectively; The net profit attributable to the parent company is 408 million yuan, 533 million yuan and 679 million yuan respectively, and the corresponding dynamic PE of the current stock price is 37, 29 and 23 times respectively. For the first coverage, give a “recommended” rating.
Risk tips
The risk of trade friction affecting exports; Risks of product price decline and gross profit margin decline; The downstream industry is in recession or weak growth; The risk of technology being overtaken or replaced.
