\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 02 Eoptolink Technology Inc.Ltd(300502) )
Event:
The company released the annual report of 21 years and the first quarterly report of 22 years, with a revenue of 2.908 billion yuan in 21 years, a year-on-year increase of 45.57%; The net profit attributable to the parent company was 662 million yuan, a year-on-year increase of 34.6%. 22q1 revenue 739 million yuan, an increase of 18.29%; The net profit attributable to the parent company was 132 million yuan, a year-on-year increase of 17.81%.
Our comments are as follows:
1. The overseas market expansion is progressing smoothly, and the market share of digital communication is expected to increase
The performance in 21 years is in line with expectations. The company's revenue and profit in the past 21 years are consistent with the previous performance express data, in which the revenue increased by 45.57%, including China's revenue of 635 million yuan, a year-on-year decrease of 28.6%. We expect that the main reason is that China's 5g construction gradually shows a steady slowdown trend, resulting in a decline in the telecommunications market; The foreign revenue was 2.273 billion yuan, with a year-on-year increase of 105.06%, reflecting the rapid growth of the global data center market demand. At the same time, the company continued to explore major overseas customers, and 100g & 400g products were shipped in batches, and the share is expected to continue to increase. We expect that the company's market share of digital communication is expected to further increase in the future.
2. Many factors lead to the decline of gross profit margin, and the gross profit margin is expected to stabilize under the stabilization of product structure + scale effect
Gross profit margin declined in 21 years. The growth rate of net profit in 21 years was 34.6%, which was lower than the growth rate of revenue, mainly due to the year-on-year decrease of 4.69 percentage points in gross profit margin in 21 years and the corresponding decrease of 1.85 percentage points in net profit margin. We believe that the decline in gross profit margin is mainly due to: 1) it is expected that the company's product structure will change and the proportion of digital communication optical module products will increase; 2) The proportion of products from major direct customers has increased significantly; 3) Rising prices of raw materials and competition lead to lower prices. Looking forward to the future, with the gradual stability of the company's product structure and the scale effect of continuous and rapid growth of revenue scale, the gross profit margin is expected to stabilize.
3. Looking forward to the rapid growth of gross profit rate and the improvement of gross profit rate in the future
22q1 gross profit margin improved, and the performance was lower than expected due to the impact of expense growth. 22q1 revenue increased by 18.29%, net profit increased by 17.81%, and the performance was slightly lower than the market expectation, mainly due to Q1 R & D expenses of 36.83 million yuan, a significant year-on-year increase of 107.75%; As well as the increase in exchange losses, the financial expenses increased by 7.25 million yuan compared with the same period last year. Among them, the gross profit margin of Q1 was 33.12%, up 2.59pp year-on-year and 0.48pp month on month in 21q4, showing an improvement trend.
4. The optical module market is expected to maintain a high prosperity, and the 400g upgrade is expected to open the space for sustainable growth in the future
The industry is expected to maintain a high boom. In the latest report of lightcounting, eight of the nine head companies tracked said that 22q1 sales increased year-on-year. On the whole, the industrial chain has improved its response to supply chain fluctuations, the demand of downstream cloud manufacturers continues to grow, and the optical module / device industry is expected to maintain a high boom in 22 years.
The products are highly competitive, or will benefit from the upgrading of optical modules. The company is one of the few enterprises in China that deliver 100g, 200g and 400g optical modules in batches and master high-speed optical device chip packaging and optical device packaging. It has successfully launched 400g optical module products based on silicon optical solutions, 400gzr / Zr + coherent optical modules and 800g optical module product portfolio based on EML and siph solutions. It is expected to fully enjoy the continuous and rapid growth of global data traffic and promote the upgrading of optical modules.
Profit forecast and investment suggestions:
Under the dual driving background of 5g scale construction + rapid development of cloud computing data center market, the company's customer and product structure are continuously optimized, its competitiveness is continuously strengthened, and its share is expected to be further improved. Affected by the epidemic, the net profit of the company in 22-23 years was adjusted to 800 million and 960 million yuan, corresponding to 15x PE in 22 years, and the net profit in 24 years was predicted to be 1.1 billion yuan, maintaining the "buy" rating.
Risk warning: the impact of the epidemic on overseas business; Price reduction of products caused by fierce competition; Risks such as lower than expected upgrade progress of data communication 400g
