\u3000\u3 Guocheng Mining Co.Ltd(000688) 195 Optowide Technologies Co.Ltd(688195) )
Event overview: on April 21, 2022, the company released the annual report of 2021 and the first quarterly report of 2022. In the whole year of 2021, the company realized an operating revenue of 303 million yuan, a year-on-year increase of 12.44%, a net profit attributable to the parent of 52 million yuan, a year-on-year decrease of 26.25%, and a deduction of non attributable net profit of 39 million yuan, a year-on-year decrease of 33.50%. In the first quarter of 2022, the operating revenue was 78 million yuan, a year-on-year increase of 37.81%, and the net profit attributable to the parent company was 10 million yuan, a year-on-year increase of 36.34%.
Last year's performance was under pressure due to factors such as plant relocation, and the negative factors gradually cleared away. 22q1 performance ushered in an accelerated rebound: in terms of revenue, the demand of the downstream fiber laser industry maintained high growth in 2021, the proportion of revenue increased to 55.45%, and the demand in the field of optical communication fluctuated. In the second half of the year, it ushered in a stable recovery, and the proportion of revenue decreased to 41.70%. The annual revenue was 303 million yuan, 12.44% year-on-year, which was in line with the overall expectation. In terms of profits, factors such as the new personnel and equipment of the raised investment project and the relocation progress of the new plant slightly lower than expected led to a large increase in costs, and the net profit attributable to the parent decreased by 26.25% year-on-year. With the completion of plant relocation, the negative factors gradually cleared out, the company's production capacity entered the release period, and the performance ushered in a rebound. 22q1 company's revenue and net profit attributable to the parent company increased by 37.81% and 36.34% year-on-year respectively.
Increase R & D investment, continue to consolidate the leading position of technology, and accelerate the localization and substitution process of high-end optical components: since 2018, the R & D expense rate of the company has continued to increase, reaching 8.19% in 2021, 0.77 percentage point higher than 7.42% in 2020, and 22q1 has further increased to 9.22%. The continuous increase of R & D investment has also established the company's leading position in the field of optical components and other technologies. Relying on its four major technology platforms "optical film technology platform", "precision optical technology platform", "molded glass aspherical technology platform" and "optical fiber device technology platform", the company continues to promote product optimization and category improvement, and accelerate the localization and substitution process of some high-end products. The company's current data center uses CWDM filters, optical components applied to WSS modules, high-power coated optical fiber lines Molded glass aspherical lens and other products have high market influence.
Steady progress has been made in emerging application fields, helping the company open up future growth space: optical components are widely used. In recent years, the company has accelerated its expansion to quantum information scientific research, biomedicine, AR glasses, lidar and other fields. In the field of lidar, the company mainly provides precision optical components such as lenses, window films, prisms, filters and mirrors. In October 2021, the company passed iatf16949 vehicle regulation certification, and the relevant products are currently in the stage of sample delivery or small batch verification, waiting for the downstream demand.
Investment suggestion: we estimate that the net profit attributable to the parent company from 2022 to 2024 will be RMB 90 / 137 / 188 million respectively, and the corresponding PE multiple will be 25X / 16x / 12x. As a leading manufacturer in the field of precision optical components and optical fiber devices, the company will continue to promote the localization and substitution process of high-end products based on its own technology platform. On this basis, the company continues to expand the downstream application scenarios of its products. In the future, with the large amount of downstream demand, it will further give the company performance flexibility and broad growth space. Maintain a "recommended" rating.
Risk tip: the demand of downstream fiber laser and optical communication is less than expected, and the expansion of emerging application fields is less than expected
