\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 08 Focus Lightings Tech Co.Ltd(300708) )
Event:
On April 11, the company released the 2022 Q1 performance report. 22q1 achieved an operating 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, with a year-on-year increase of 60.66%; The net profit attributable to the parent company after deducting non profits was significantly improved, with a loss of 5.32 million yuan in 22q1 and 10.06 million yuan in 21q1.
Comments:
Refined management improves profitability, increases R & D investment and further upgrades product structure
The company adheres to the refined management mode covering the whole business process, especially strengthening the independent innovation of technology and cost control. 22q1’s net profit margin was 5.15%, up 1.72pct year-on-year, and its profitability continued to improve; In the same period, the gross profit margin of the company was 13.99%, a year-on-year decrease of 0.71 PCT, a slight decrease. In addition, the company continued to increase R & D investment. The R & D cost of 22q1 company was 28.18 million yuan, a year-on-year increase of 31.63%, the R & D cost rate was 5.86%, a year-on-year increase of 1.11 PCT, and the product structure continued to upgrade towards high-end.
Miniled drives new growth, and the company’s R & D is progressing smoothly
Since the commercialization of miniled scale in 2019, the global miniled market has witnessed significant growth. According to arizton data, the global miniled market scale will increase from US $150 million in 2021 to US $2.32 billion in 2024, with CAGR reaching 168%. At present, the company’s miniled products have been verified by customers. The silver mirror products have passed the design samples, and the high bandwidth GaN based visible light communication chip jointly developed with 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, and the performance is expected to increase greatly with the rapid growth of the industry.
Profit forecast and investment suggestions
The company’s performance in 2021 is in line with expectations. Taking into account the steady operation of the company and the smooth progress of raised investment projects, we maintain the company’s revenue of RMB 2.602/2.967/3.123 billion from 2022 to 2024 and the three-year CAGR of 15.84%; The net profit attributable to the parent company is RMB 274 million / RMB 331 million / RMB 367 million, and the three-year CAGR is 27.43%, corresponding to pe24 / 20 / 18x. Based on the PE level of comparable companies in the industry, the company is given a 22-year 30xpe, corresponding to the target price of RMB 15.10, which is raised to the “buy” rating.
Risk tips
The downstream demand is lower than the expected risk; Risk of product price decline; Production capacity release is less than expected risk.
