\u3000\u3 Guocheng Mining Co.Ltd(000688) 007 Appotronics Corporation Limited(688007) )
Key investment points:
Appotronics Corporation Limited(688007) owns original ALPD ® Laser display technology and build a deep patent barrier. The industrialization of laser display is difficult to bypass the company’s patents, so Guangfeng fully enjoys the development dividend of the industry. In terms of technology commercialization, the company’s b-end business has entered the harvest period of achievements, and has become a partner of Airbus and Huawei’s vehicle manufacturing solutions, while the C-end has gradually become a strong growth point.
\u3000\u3 Guocheng Mining Co.Ltd(000688) 007：ALPD ® Technology inventors gradually enter the harvest period of achievements. 1) The company was established in 2007
Invented ALPD in ® Fluorescent laser display technology has revolutionized the performance and cost problems encountered in the industrialization of laser display. ALPD ® As the mainstream laser display light source technology, the company firmly grasps the core patents through the intellectual property protection system, making it difficult for competitors to bypass the company’s patents. Philips, Texas Instruments and other enterprises have cited the company’s patents for more than 600 times. 2) In terms of the pace of industrialization, the company established a joint venture with subdivided head enterprises to accelerate the commercialization of technology.
End C: Laser TV + micro investment dual wheel drive, double rise in revenue and profit, and build the second growth curve. Projection has the advantages of high cost performance and large screen, while laser can make up for the lack of brightness of LED light source, and the incremental space of laser TV and laser micro projection is broad. After fengmi completed the financing of RMB 1 billion, it has sufficient financial support. In 2021 and early 2022, it launched two new laser TVs and four laser micro investment products, which were recognized by the market. The growth rate of laser light source industry is expected to be 44-44% in 2020, which is expected to be the peak of scarce laser light source industry. In terms of profit, fengmi’s private brand accounted for more than 50% of fengmi’s total revenue for the first time in 2021. With the construction of independent brands, the company’s C-end gross profit margin is expected to increase 6pct from 2020 to 2023.
End B: the mainstay of the profit end. There are still multiple growth points in the future. After years of investment, the b-end business has entered a mature period, and the gross profit margin is stable at 50-60%, contributing most of the profits. At present, there are still many growth points at the b-end. The company’s optical engine, business education and engineering sectors have ushered in large increments under the multiple advantages of the increase in the penetration of Chinese laser cinemas, the growth in the demand for smart office, the surge in the demand for large screen teaching in smart campus, the rapid growth of cultural tourism industry and the wave of overseas pump lamp replacement. In addition, the company’s exploration of innovative business scenarios such as on-board projection and aviation laser display has also opened up new markets. It is estimated that the b-end revenue CAGR will be 26% from 2020 to 2023.
Profit forecast: it is estimated that the company’s revenue from 2021 to 2023 will be RMB 2.506/36.95/5.018 billion respectively, and the three-year CAGR will be 37%; The net profit attributable to the parent company was RMB 222 / 307 / 425 million respectively, the EPS was RMB 0.49/0.68/0.94/share respectively, and the CAGR was 55%. B-end business still has incremental space, and strive to build the second growth curve of C-end, with broad growth space. With reference to the relative valuation, the target price range for 2022 is 27-31 yuan, corresponding to 40-45 times of PE. For the first time, give a “buy” rating.
Risk tips: shortage of raw materials, repeated outbreaks, overseas trade risks
