\u3000\u3 Guocheng Mining Co.Ltd(000688) 127 Zhejiang Lante Optics Co.Ltd(688127) )
Key investment points
Event: on April 21, the company issued 2021 annual report and 22q1 performance report. In 2021, the company achieved revenue of 415 million yuan, a year-on-year increase of - 5.3%; The net profit attributable to the parent company was 140 million yuan, a year-on-year increase of - 23.5%; Deducting the net profit not attributable to the parent company of 106 million yuan, a year-on-year increase of - 33.7%; The gross profit margin was 50.1%, with a year-on-year increase of -7.6pct; The net interest rate was 33.9%, year-on-year -7.8pct. 22q1 achieved an income of 90 million yuan, with a year-on-year increase of - 6.8% and a month on month increase of - 10.4%; The net profit attributable to the parent company was 22 million yuan, with a year-on-year increase of - 43.9% and a month on month increase of - 29.7%; Net profit deducted from non parent company was 13 million yuan, with a year-on-year increase of - 58.9% and a month on month increase of - 44.1%; The gross profit margin was 39.6%, with a year-on-year ratio of -15.5pct and a month on month ratio of -7.9pct; The net interest rate was 24.1%, with a year-on-year ratio of -15.9pct and a month on month ratio of -6.7pct.
The revenue of the long prism continued to decline, and the glass aspheric lens increased significantly: the long prism was the main source of the company's revenue. In 2021, due to technical changes and design scheme changes, the new models of key customers no longer use the long prism. The company's long prism only supplied the old models, resulting in pressure on the performance of 2021 and 22q1. The proportion of revenue of 22q1 long prism has decreased to 3.2% from 31.4% in the same period last year. The impact of the decline in revenue of long prism has been fully reflected. At the same time, driven by the downstream demand of vehicle lens and lidar, the revenue of the company's glass aspherical lens continued to grow significantly, and the proportion of revenue increased from 18.5% in 21q1 to 33.96% in 22q1. At present, the scale of glass aspherical lens is still small and the gross profit margin is low, and the increase of its income proportion leads to the decline of the company's comprehensive gross profit margin.
The high growth track of vehicle optics creates the second growth pole: the company has the industry-leading production capacity of precision optical components, and continues to invest in R & D to maintain the leading edge of technology. The R & D expenses excluding share based payment in 21 years have increased by 49.6% year-on-year. It is one of the few manufacturers with the production capacity of glass aspheric lens in China and provides mainstream customers in vehicle lens and lidar industry. With the accelerated penetration of automotive intelligence, the company's glass aspheric lens continued to grow significantly, with a year-on-year increase of + 74.1% in 21 years and + 71.1% in 22q1, which continued to provide high growth momentum. Moreover, with the scale effect of glass aspheric lens raising the gross profit margin, the overall profitability of the company will continue to increase.
The revenue of the company is expected to increase by 3.8% year-on-year, offset by the increase of traditional prism's revenue, which is expected to be increased by 3.8% year-on-year, and the revenue of the company will continue to increase by 3.9% year-on-year. In addition, key customers are expected to launch rear view periscope cameras in 2023. Relying on its leading technology in the field of optical prisms and the customer relationship accumulated when supplying long prisms, the company is expected to cut into the supply chain of periscope lens micro prisms for key customers and contribute significant revenue increment to the optical prism business. 22q1's R & D investment in the micro prism project reached 5.15 million yuan, accounting for 44% of the total R & D investment.
Investment suggestion: considering the decline of income and comprehensive gross profit margin of the long prism business, we adjust the profit forecast. It is estimated that the net profit attributable to the parent company in 202224 will be 160 / 360 / 470 million yuan, corresponding to 37 / 17 / 13 times of PE, maintaining the "buy" rating.
Risk warning: the launch of new products is less than expected, the terminal demand is less than expected, and the information and data used in the research report are not updated in time.
