Juguang Technology (688167)
The leading laser component enterprise is marching towards large-scale commercialization in the middle reaches of the industry.
① the company is a leading enterprise of laser components. The company is deeply engaged in the upstream choke link of the laser industry, mainly engaged in the R & D, production and sales of high-power semiconductor laser components ("generating photons") and laser optical components ("regulating photons"). The company has developed into the most powerful high-power semiconductor laser brand in China and has been awarded the title of "pioneer of high-power semiconductor laser industry" by the laser processing professional committee of China Optical Society.
② take the lead in "generation + regulation" photon technology, expand "photon application" and open up growth space. The company has mastered nine core technologies such as eutectic bonding, thermal management, line spot shaping and beam conversion, and has reached the industry-leading level. On the basis of generating + regulating photon technology, the company has expanded the layout of photon application modules and systems in the midstream, focusing on the three fields of lidar, pan semiconductor and medical beauty. At present, the company has signed framework agreements with Continental Germany and cyden company in the UK, and cooperated with Shanghai microelectronics and Beijing Huazhuo precision technology. The commercialization layout of the midstream of the company has made rapid progress.
③ accelerated performance growth and gradually improved profitability. With the deepening of the upstream component business and the expansion of the midstream application field, the company's performance has accelerated. According to the performance express, the company achieved a revenue of 476 million yuan in 2021, a year-on-year increase of 32.21%; The net profit attributable to the parent company was 68 million yuan, a year-on-year increase of 94.33%. With the increase of the company's production scale and the decrease of the period expense rate, the company's profitability has gradually improved. In the first three quarters of 2021, the company's gross profit margin and net profit margin were 56.51% and 15.68% respectively, which increased significantly year-on-year.
Components are the cornerstone of the laser industry. The company continues to cultivate and build a high barrier moat.
① optical processing replaces traditional processing, and the scale of laser industry continues to grow. Laser processing belongs to non-contact processing. Compared with traditional processing methods, laser processing has the advantages of good processing quality, high efficiency, reducing material loss, wide processing range and easy automation integration. With the development and progress of laser technology and the decline of the price of laser equipment, the penetration rate of laser processing continues to increase. According to the data of laser focus world, from 2009 to 2020, the global market scale of laser processing equipment increased from US $5.3 billion to US $17.4 billion, and the CAGR was about 11.4%.
② the company ploughed deep into the neck link of the upstream and built a high barrier moat. The upstream of laser industry has high technical difficulty, long verification cycle and obvious scale effect, so it has very high market barriers. When the company was founded in 2007, it focused on high-power semiconductor lasers that "generate photons". In 2017, after the company acquired German limo, it obtained the "control photons" technology, thus opening up the technology chain and realizing the leap from point light source to line light source and area light source. At present, the company has mastered a number of core technologies in the field of photon generation and photon regulation, which has reached the industry-leading level.
Entering the blue ocean market of lidar is expected to achieve rapid growth.
① automatic driving promotes the outbreak of lidar market. With the continuous decline of lidar price, lidar is expected to become the standard configuration of most models above L3. With the rapid development of automatic driving, the lidar market has exploded. According to Sullivan data, the global lidar market scale in 2019 is US $680 million, the global market scale in 2025 is expected to be US $13.54 billion, and the CAGR from 2019 to 2025 is about 64.5%.
② the company's lidar products cover a variety of routes. The company's laser products mainly include emitting end light source, line light source and light source optical components. Among them, optical components are applied in different lidar technology routes, so they will fully benefit from the rapid development of lidar industry. In the launch module, based on its own technical advantages and market judgment, the company develops line spot and flash surface spot, which has excellent development prospects.
③ cooperation with many well-known enterprises is expected to achieve rapid development. The company has reached cooperation intentions or established cooperation projects with many well-known enterprises, including velodynelidar, luminar, a listed company of NASDAQ lidar, argoai, a well-known driverless company under Ford, etc. among them, the lidar linear light source products have established new product development projects with many customers, and the peak power solid-state lidar surface light source that has been developed since 2016 has signed a batch supply contract with Continental Germany, Now it has entered the stage of mass production, and lidar is expected to become the first midstream application scenario for large-scale realization of the company.
Expand the field of Pan semiconductor and medical beauty, and create a new growth point of the company.
① pan semiconductor field: laser is widely used in Pan semiconductor field. Based on the technology accumulation in the field of components, the company arranges lithographic components, semiconductor wafer annealing, integrated circuit detection, laser stripping and annealing of display panel. At present, it has entered into a number of well-known large customers, including Shanghai microelectronics, Beijing Huazhuo Jingke, TSMC, Korean DIT, American Kelei and other well-known semiconductor enterprises.
② medical and aesthetic fields: laser medical treatment is an emerging market based on the photothermal theory of biological tissues. Due to the characteristics of covering a wider range of wavelengths, semiconductor lasers have been gradually applied in hair removal, lipolysis, fluorescence imaging and other fields. The company's layout includes laser hair removal, laser fluorescence imaging, laser lipolysis and other fields. The company signed a long-term exclusive strategic cooperation agreement with cyden, a global well-known manufacturer of household medical and health equipment, with a total value of about 800 million yuan, to develop household laser medical related businesses. In January 2022, the company announced that it planned to invest 500 million yuan in Shaoguan City, Guangdong Province to build a medical and health industry base project.
Profit forecast: the company will go deep into the upper reaches of the laser industry, develop and build high-tech barriers for a long time, and expand to the three application fields in the middle reaches. It will usher in rapid growth in the next few years. It is estimated that from 2021 to 2023, the company will realize an operating revenue of 476 million yuan, 706 million yuan and 1243 million yuan, and a net profit attributable to the parent of 68 million yuan, 121 million yuan and 197 million yuan. The corresponding PE is 138.1, 77.6 and 47.5 times respectively. It will be covered for the first time and rated as "overweight".
Risk tips: the development of lidar industry is less than expected, the performance growth is less than expected due to the non smooth implementation of the framework agreement, the risk of transnational operation and trade policy, and the risk that the information used in the research report is not updated in time.
