\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 48 Broadex Technologies Co.Ltd(300548) )
[key points of investment]
The company released its 2021 annual report, and achieved an operating revenue of 1.154 billion yuan, a year-on-year increase of 48.59%; The net profit attributable to the parent company was 162 million yuan, a year-on-year increase of 83.6%; The non net profit deducted was 137 million yuan, with a year-on-year increase of 68.88%. The performance was bright and in line with the previous expectation.
Revenue maintained rapid growth and strong demand in overseas markets. Benefiting from the vigorous promotion of 10G PON network construction by telecom operators outside China, there is a strong demand for Telecom access network products based on 10g PON OLT optical modules. In 2021, the company realized an operating revenue of 1.154 billion yuan, a year-on-year increase of 48.59%; By product, the telecom market contributed most of the company’s revenue, realizing a revenue of 1.111 billion yuan, a year-on-year increase of 56.38%, accounting for 96.24%, and the digital communication market realized a revenue of 43 million yuan, a year-on-year decrease of 34.64%. By region, the company achieved a sales revenue of 951 million yuan in China, a year-on-year increase of 38.38%, accounting for 82.42% of the total sales revenue; Overseas sales revenue reached 203 million yuan, a year-on-year increase of 127.24%, accounting for 17.58% of sales revenue. Fiber to home penetration in Europe and America is still at a low level. The company’s PLC optical splitter, dense wavelength division multiplexing (DWDM) devices and 10g PON optical modules used in the construction of optical fiber communication network are expected to continue to benefit.
The gross profit margin decreased slightly and the net profit margin continued to increase. In 2021, affected by factors such as the rise in the price of upstream components and the decrease in the market price of products, the company’s gross profit margin in 2021 decreased by 2.78pct to 22.93% year-on-year, including 2.66pct in telecom market and 16.27pct in digital communication market. Thanks to the scale effect and good cost control ability, the rate of management, sales and R & D expenses of the company decreased in 2021, driving the net interest rate to increase by 2.68pct to 14.07% year-on-year.
R & D investment continued to increase, and 400g silicon optical modules were mass produced. In 2021, the company’s R & D expenditure was 62.245 million yuan, a year-on-year increase of 15.42%, accounting for 5.39% of the company’s operating revenue. In the future, the company will focus on promoting projects such as high-speed transceiver module based on silicon photon technology, next-generation PON optical transceiver module, high-speed optical transceiver module of wireless bearer network and dense wavelength division multiplexing (DWDM) device. Silicon photonic technology is an important technical development direction of optical device industry in the next few years because of its advantages of high speed and low power consumption. The company focuses on the development of high-speed optical modules for internal interconnection of data centers and optical modules for 5g wireless forward transmission. At present, the company has preliminarily built the production lines of silicon optical wireless module, silicon optical data communication module and wireless medium return module. 25g silicon optical module and 400g DR4 silicon optical module of data communication have been mass produced, and 200g full series products have been put into commercial use. In addition, the technical transformation project of silicon optical transceiver module with an annual output of 2.45 million is under construction
Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) transferred the shares of the company and became the controlling shareholder and actual controller of the company. The company also announced that five shareholders, including the original controlling shareholder and actual controller Zhuwei (Zhu Wei), transferred a total of 221.2 million shares of the company they held to Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) , accounting for 12.72% of the total shares. The transaction price of this transfer is 40 yuan / share, and the total transaction amount is 885 million yuan. Meanwhile, Zhuwei entrusted all the voting rights of the remaining 12.71% of the company’s shares to Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) , and Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) paid another performance bonus of 143 million yuan to Zhuwei. The total price of this share transfer is 1.028 billion yuan. After the transfer, Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) obtained 12.72% shares of the company, accounting for 25.43% of the voting rights, and became the controlling shareholder and actual controller of the company.
The holding party has strong strength and is expected to realize the synergy of the industrial chain Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) is the world’s leading provider of optical fiber preforms, optical fibers, optical cables and integrated solutions. It mainly produces optical fiber preforms, optical fibers, optical cables, various optical modules, special optical fibers, active optical cables, submarine cables and other diversified products for the communication industry. It has more than 40 subsidiaries and more than 7000 employees. Its business covers more than 70 countries and regions. In 2021, it achieved an operating revenue of 9.536 billion yuan, It is in the leading position in China’s optical fiber and cable industry. The introduction of Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) as the controlling shareholder and actual controller of the company is expected to realize industrial chain coordination with the company’s inherent business and products, and provide multi rate optical communication one-stop solutions in the future to enhance market competitiveness.
[investment suggestions]
The company is mainly engaged in the R & D, production and sales of integrated optoelectronic devices in the field of optical communication. Its main products are oriented to the telecommunications and data communication markets outside China. Considering the company’s performance last year, industry prosperity, market position and competitiveness, compared with the previous forecast, we lowered the forecast of the company’s operating revenue, gross profit margin and period expenses in 2022, and added the performance forecast from 2023 to 2024. It is estimated that the operating revenue of the company from 2022 to 2024 will be 1.606 billion yuan, 2.107 billion yuan and 2.629 billion yuan, the net profit attributable to the parent company will be 219 million yuan, 287 million yuan and 358 million yuan, the EPS will be 126 million yuan, 165 million yuan and 206 yuan, and the corresponding PE will be 22 times, 17 times and 14 times. We are cautious about the future performance of the company and maintain the “overweight” rating.
[risk tips]
Gigabit broadband penetration and 10g PON upgrade were not as advanced as expected;
The business promotion of data communication optical module is less than expected;
Market competition intensifies.
