\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 94 Suzhou Tfc Optical Communication Co.Ltd(300394) )
Core view
In 2021, the company's operating revenue and profit achieved double growth. The company released the annual report of 2021. In 2021, the annual revenue was 1.03 billion yuan (a year-on-year increase of 18.2%), the net profit attributable to the parent was 310 million yuan (a year-on-year increase of 9.77%), and the net profit attributable to the parent after deduction was 280 million yuan (a year-on-year increase of 6.13%). The company plans to distribute a cash dividend of 4 yuan (including tax) for every 10 shares.
In 2021, the data communication market is advancing steadily, and there are periodic fluctuations in the telecom market, and the increment mainly comes from export. The growth of the company's operating revenue is mainly due to the pull of the global data center scale construction on the demand for optical devices and the expansion of the company's high-quality customers at home and abroad; At the same time, the company's high-speed optical engine project has also made incremental contributions to the mass production of Arctic optoelectronics and Tianfu precision acquired in 2020. In terms of market, the telecom market is subject to the periodic fluctuation of China's 5g base station construction, and the demand decreases synchronously, which is reflected in the decline of 27% in the revenue of optical active devices; The data center market is the company's main downstream application scenario. The demand continues to grow steadily, and the revenue of optical passive components still maintains a growth rate of 24%. Export revenue increased by 62%, mainly from North America and Asia (excluding China), while domestic sales revenue decreased by 7.3%. Q2 / Q3 / Q4 single quarter revenue growth and profit growth improved quarter by quarter, mainly due to the recovery of industry prosperity in the second half of 2021, as well as the smooth progress of Arctic expansion and mass production of high-speed optical engines.
The decrease of gross profit margin and the increase of expense rate in 2021 are mainly due to consolidation factors, and there is still room for improvement in the future. In 2021, the gross profit margin and net profit margin of the company decreased by 3.12pct year-on-year And 2.59 PCT, The increase in the three major expense rates of R & D / sales / management is mainly due to the consolidated impact of the acquisition of Tianfu precision and Arctic Optoelectronics in 2020 and the increase in employee compensation. Among them, the R & D investment is mainly oriented to the fields of high-speed optical engine, components for high-speed optical module, 5g mwdm Tosa devices and so on. The assets acquired by the company have strong synergy with the original business at the levels of production, R & D and customers. The transfer of the new product line to Jiangxi base for production expansion is conducive to give full play to the company's cost control ability, and there is still room for improvement in subsequent profitability.
Looking forward to 2022, the main theme is to improve the market share of each product line and develop new customers. 1. The market demand for digital communication continues to grow, and new products such as polarization maintaining devices, FA and AWG are produced in mass on a slope to increase market share; 2. The high-speed optical engine project breaks through the increment brought by key customers, and actively promotes the progress of cooperation with other customers; 3. The expansion of Arctic optoelectronics factory in Jiangxi is expected to give full play to the synergistic effect. 4. Actively explore new fields such as lidar and medical detection, and lay the product foundation for the long-term development of the company.
Risk warning: the expansion of new products does not meet expectations; Deterioration of market competition; Acquisition and integration did not meet expectations.
Investment advice: maintain the profit forecast and maintain the "buy" rating.
Maintaining the profit forecast, the net profit attributable to the parent company is expected to be RMB 430 / 550 / 690 million from 2022 to 2024, with a year-on-year growth rate of 41 / 26% / 26%; The current share price corresponds to 21 / 17 / 13 times of PE. Maintain the "buy" rating.
