\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 20 Advanced Fiber Resources (Zhuhai) Ltd(300620) )
Core view
In 2021, the annual revenue and performance achieved high growth. The annual revenue and performance of 22021 achieved high growth. In 2021, the annual revenue was 670 million yuan (+ 35.8%), the net profit attributable to the parent company was 130 million yuan (+ 120.9%), and the net profit attributable to the parent company after deduction was 110 million yuan (+ 138.6%). In the fourth quarter, the single quarter revenue was 181 million yuan (+ 24.3%), the net profit attributable to the parent company was 33 million yuan (+ 115.3%), and the net profit attributable to the parent company after deduction was 23 million yuan (+ 83.35%).
The company achieved high-speed growth in annual revenue in 2021, mainly due to the high-speed growth of fiber laser revenue and the smooth expansion and sales of lithium niobate modulator. Among them, the revenue of optical fiber laser devices was 367 million yuan, accounting for 54.9%, with a year-on-year increase of 44.2%. In terms of high-power optical fiber laser devices, batch supply was realized, the demand for orders was strong, and the inventory at the end of the year also increased significantly year-on-year; The revenue of optical communication devices was 168 million yuan, accounting for 25.2%, with a year-on-year increase of 8.4%. The slowdown in revenue was mainly due to the slowdown in the construction of data center and 5g base station, resulting in the reduction of relevant orders of the company; The revenue of lithium niobate modulator and photon integrated products was 100 million yuan, accounting for 15.1%, with a year-on-year increase of 125.5%, mainly due to the booming production and marketing, and the short production and operation cycle affected by the epidemic in 2020.
The growth rate of the company’s net profit after deducting non profits was significantly higher than that of revenue, mainly because the wholly-owned subsidiary guangku Milan turned losses into profits. The gross profit margin of the company in 2021 was 41.99%, down 2.02pct. The gross profit margin of photonic optical fiber modulator and niobate optical fiber modulator increased by 27.8%, and the gross profit margin of photonic optical fiber modulator and niobate optical fiber modulator decreased by 27.8%. The overall cost rate has decreased and continued to increase R & D investment. The company’s sales / management / R & D / financial expenses in 2021 changed by + 22.2% / + 1.44% / 56.59% / – 221.23% year-on-year respectively.
Looking forward to 2022, all businesses are expected to go hand in hand. The production capacity of the company’s raised and invested projects continues to climb, the shipment of bulk material lithium niobate modulator is expected to further increase, driving the rapid growth of revenue, and the sample certification of thin film lithium niobate modulator is expected to make a further breakthrough; At the same time, the fiber laser device business benefits from the sustainable development of the fiber laser industry and the strengthening of the company’s competitiveness; The optical communication business benefits from the recovery of data center and 5g market, and the company’s overall revenue is expected to maintain steady growth.
Risk tip: the progress of new products is less than expected, the competition is intensified, and the profitability is less than expected.
Investment suggestion: maintain the profit forecast and maintain the “overweight” rating.
Maintaining the profit forecast, we expect the net profit attributable to the parent company to be RMB 190 / 270 / 360 million from 2022 to 2024, with a year-on-year growth rate of 46 / 41 / 32%. The current share price corresponds to PE of 31 / 22 / 17x. Maintain the “overweight” rating.
