\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 94 Suzhou Tfc Optical Communication Co.Ltd(300394) )
Key investment points
Event: Suzhou Tfc Optical Communication Co.Ltd(300394) released the annual report of 2021, in which the revenue in 2021 was 1.03 billion yuan, with a year-on-year increase of 18.20%, and the net profit attributable to the parent company was 306 million yuan, with a year-on-year increase of 9.77%. The performance met our expectations.
The performance grew steadily, and the net profit attributable to the parent company of Q4 reached a record high: driven by the demand for optical devices in the digital communication market and the incremental improvement brought by the company’s acquisition of Beiji optoelectronics and Tianfu precision and high-speed optical engine projects, the performance of Suzhou Tfc Optical Communication Co.Ltd(300394) 2021 achieved a steady growth, of which the net profit attributable to the parent company of Q4 reached 93 million yuan, a year-on-year increase of 44.52%, and the net profit attributable to the parent company reached a record high in a single quarter. In terms of products, subject to the periodic fluctuation of China’s 5g base station construction process, the market demand for optical device products did not increase but decreased. Optical active devices achieved an operating revenue of 84.99 million yuan in 2021, a year-on-year decrease of 27.06%. Secondly, the revenue of optical passive devices was 920 million yuan, a year-on-year increase of 23.74% Suzhou Tfc Optical Communication Co.Ltd(300394) has focused on the R & D and production of core materials and devices in the field of optical communication and optical devices for decades, accumulated mainstream high-quality customers in the industry at home and abroad, established long-term and stable strategic partnership with customers, and became the preferred supplier for many mainstream customers in the industry with strong R & D ability, rapid response service ability and large-scale mass production capacity. Therefore, we continue to be optimistic about the steady growth of Suzhou Tfc Optical Communication Co.Ltd(300394) future performance.
Deeply cultivate the depth of optical module telecommunications and digital communication market, open up new tracks and release the growth space of the industry: in the digital communication market, driven by cloud computing and meta universe, the scale construction of global data center drives the continuous and large-scale volume of 400g / 200g and other high-speed optical modules. At the same time, the high-speed optical engine of the company’s fund-raising project has been delivered in batches in 2022, which will be mainly used for 400g / 800g and higher speed digital communication modules. In addition to the optical communication industry, the company makes use of the accumulation of existing professional capabilities to actively layout the tracks such as lidar and medical detection, and provide customers with basic components and integrated packaging products. In the field of lidar, the company has established a special sales team and project team to continuously follow up the development of new energy vehicle automatic driving in the lidar market. The layout in the field of medical testing is also being promoted according to the strategic plan.
Profit forecast and investment rating: according to the latest Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) situation and the company’s business data, we will reduce the net profit attributable to the parent company from 397 million yuan and 499 million yuan to 383 million yuan and 471 million yuan in 20222023. It is estimated that the net profit attributable to the parent company in 2024 will be 573 million yuan, and the EPS in 20222024 will be 0.98 yuan, 1.20 yuan and 1.46 yuan respectively, and the corresponding PE valuation will be 24x / 19x / 16x respectively. Considering the development of new fields and creating new high-quality business growth points, Considering the company’s competitive pattern, industry barriers, delivery of new products and other factors, we continue to be optimistic about the steady growth of Suzhou Tfc Optical Communication Co.Ltd(300394) future performance, so we maintain the “buy” rating.
Risk warning: the expansion of new fields is not as expected; The demand for high-speed optical modules is less than expected.
