\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 48 Broadex Technologies Co.Ltd(300548) )
Event overview: on April 7, 2022, the company released its annual report for 2021. In 2021, the company realized an operating revenue of 1.154 billion yuan, a year-on-year increase of 48.59%, and a net profit attributable to the parent company of 162 million yuan, a year-on-year increase of 83.60%.
The 10g PON market continues to be hot, and the company has fully benefited as a leader in subdivided fields: at present, it is in the rapid construction period of 10gpon port, and domestic operators continue to increase the construction investment of 10G PON access network, driving the rapid growth of 10G PON OLT optical module sales of the company. By the end of 2021, the number of fixed Internet broadband access users with 1g and above access rate of three domestic operators had reached 34.56 million, with a year-on-year net increase of 28.16 million. 7.86 million 10g PON ports had been built in China, with the ability to cover 300 million households. At present, the company's shipment of 10G PON OLT optical modules ranks first in China. In 2021, the shipment of 10G combo PON OLT optical modules exceeded one million.
In traditional advantageous fields, PLC optical splitter and DWDM devices continue to consolidate their leading advantages: 1) PLC: the main application scenario of PLC is fiber to the home. At present, China has entered a mature period, and there is still a large growth space for fiber to home penetration in Europe and the United States. According to rvallc's prediction, from 2022 to 2026, the deployment of fiber to the home in North America and the Caribbean will be strong. In the next five years, the investment in fiber to the home construction of American operators will reach 125 billion US dollars, exceeding the previous cumulative investment. It is expected that in the next few years, the construction of global optical fiber to home network will evolve to Gigabit access, and the demand for PLC optical splitter for optical fiber access network will continue. Driven by overseas demand, the company's overseas demand for PLC optical splitter ushered in a significant year-on-year increase in 2021. 2) DWDM: with the application of 200g and higher rate OTN in transmission network, DWDM devices are undergoing upgrading process, and DWDM devices with larger number of channels and smaller wavelength spacing are becoming the mainstream in the industry. AWG (array waveguide grating) and vmux (tunable optical power wavelength division multiplexer) used in backbone network and metropolitan area network DWDM system have outstanding competitive advantages, and the market share of related products ranks in the forefront of the industry. At the same time, based on its own PLC chip factory, the company continues to increase R & D and production investment in the field of DWDM products to consolidate its leading advantage.
Steady progress has been made in the field of silicon light, helping to expand the future growth space: according to lightcounting, the market scale of optical devices based on silicon light will reach US $30 billion from 2021 to 2026. The company focuses on the silicon optical modules used in data centers and wireless front transmission. At present, the wireless front transmission 25g silicon optical module and data communication 400g DR4 silicon optical module have been mass produced, and the overall progress is in line with expectations. It is expected that the silicon optical business will help the company further open up growth space in the future.
Investment suggestion: we expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 227 / 279 / 343 million respectively, and the corresponding PE multiple is 22x / 18 / 15x. The layout of the company in the traditional passive and active fields is perfect, and the basic sector of the company's overall performance is built. The silicon optical business is advancing steadily as a whole, which will help the company further expand its growth space in the future. At the same time, with the change of major shareholders of the company, Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) , which is conducive to the optimization and integration of resources, the realization of strong alliance and the further expansion and strengthening of the company's main business. Maintain a "recommended" rating.
Sharp decline in market demand and financial risk
