\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 08 Focus Lightings Tech Co.Ltd(300708) )
Core view
Event:
The company released the first quarter report of 2022.
With the superposition of capacity release and accurate grasp of market demand, the company's 2022q1 revenue continued to grow. In 2022q1, the company achieved a revenue of 481 million yuan, a year-on-year increase of + 7.15%; The net profit attributable to the parent company was 25 million yuan, a year-on-year increase of + 60.66%. In the context of the epidemic situation, the company rose to the challenge, focusing on epidemic prevention and control on the one hand and full production and sales on the other hand. The release of production capacity overlaps the accurate grasp of product positioning and market demand. The production and sales of high-end products represented by backlight, high light efficiency, high-voltage and flip chip products are booming, so as to ensure that the utilization rate of production capacity remains high.
Adhering to the fine management mode, the decrease of financing expenses has increased the net interest rate. The gross profit margin of the company in 2022q1 was 13.99%, with a year-on-year increase of -0.71pct; The net interest rate was 5.15%, with a year-on-year increase of + 1.72pct. The company has continuously strengthened the cost control of technology independent creation Zhejiang Nhu Company Ltd(002001) cost, greatly reduced the financing cost and steadily increased the net interest rate. In 2022q1, the company's sales expense rate, management expense rate, R & D expense rate and financial expense rate were 0.51%, 2.33%, 5.86% and 0.53% respectively, with a year-on-year increase of -0.04pct, + 0.10pct, + 1.09pct and -2.24pct.
High R & D investment promotes the upgrading of product structure, and the profitability of the company is expected to be further enhanced. In 2022q1, the company invested 28 million yuan in R & D, a year-on-year increase of + 33.33%. In the future, with the promotion of fund-raising projects, the company will launch high-end and high priced products such as miniled and vehicle lighting, and the company's product categories will be further enriched. With the continuous implementation of the business strategy of "adjusting structure, improving performance, creating benefits and casting brand", the profitability of the company is expected to be further enhanced.
Raised investment projects continue to release production capacity, and miniled R & D layout helps the development of the company. In June 2021, the company's fixed increase project plans to add 1.2 million miniled chips per year, which is expected to be gradually released in 2022. The high bandwidth GaN based visible light communication chip jointly developed by the company's silver mirror products and the semiconductor Research Institute of the Chinese Academy of Sciences is progressing smoothly. With the newly purchased MOCVD equipment and chip manufacturing equipment in place, the mass production of new products can be expected. With the increasing volume of miniled and other new products, the development power of the company will be further enhanced.
Profit forecast: optimistic about the company's profitability improvement brought by the R & D layout of new products under the gradual release of production capacity. We expect the net profit attributable to the parent company in 2022, 2023 and 2024 to be RMB 264 / 346 / 480 million respectively, corresponding to 25 / 19 / 14 times of the current share price and 21 / 14 / 11 times of the share price on April 15, maintaining the "buy" rating.
Risk tip: industry competition intensifies, capacity release is less than expected, and downstream demand is less than expected.
