\u3000\u3 Shengda Resources Co.Ltd(000603) 297 Ningbo Yong Xin Optics Co.Ltd(603297) )
Key investment points
Event: on April 25, the company released 2021 annual report and 22q1 report. 1) In 2021, the revenue reached 800 million yuan, a year-on-year increase of + 37.9%; The net profit attributable to the parent company was 260 million yuan, a year-on-year increase of + 61.7%; Deducting the net profit not attributable to the parent company of 160 million yuan, a year-on-year increase of + 69.3%; The gross profit margin was 42.8%, basically unchanged year-on-year; The net interest rate was 32.8% year-on-year. 2) 22q1 achieved an income of 210 million yuan, a year-on-year increase of + 21.2% and a month on month increase of – 2.4%; The net profit attributable to the parent company was RMB 50 million, with a year-on-year increase of – 55.0% and a month on month increase of + 23.9%; Deduct net profit not attributable to parent company of RMB 40 million, with a year-on-year increase of + 11.1% and a month on month increase of + 7.4%; The gross profit margin was 40.3%, basically unchanged year-on-year, with a month on month ratio of -2.2pct; The net interest rate was 25.8%, and the net interest rate after deduction was 19.5%, with a year-on-year rate of -1.8pct, which was basically flat month on month. 22q1 net profit attributable to parent decreased year-on-year, mainly due to higher non economic income from government collection and storage compensation in the same period last year.
The five-year plan achieved a good start, and the revenue and profit increased significantly: Based on the traditional microscope business, the company actively grasped the development opportunities of automatic driving and lidar market, and expanded its business to emerging optical components such as bar code scanning and machine vision lens, vehicle optics and lidar optical components. The new plant was fully put into operation in 2021, and four IPO raised investment projects were fully completed, greatly increasing the production capacity. According to the company’s disclosure, in 2021, the company’s output of functional optical lenses and components reached 28 million pieces, with a revenue of about 450 million yuan; The output of vehicle mounted lenses and lenses increased rapidly. In 2021, 7 million vehicle mounted lenses and 20000 vehicle mounted and lidar lenses were produced, with an additional income of 34 million yuan. With the rapid growth of optical component business, the company has achieved significant growth in revenue and profit, laying a good beginning for the “May 5” strategic goal.
Excellent growth potential of optical element components and high growth certainty of vehicle mounted optics: 1) bar code scanning and machine vision: in the past 21 years, the company’s bar code scanning and machine vision lens have been rapidly expanded, and the revenue has increased by more than 60% year-on-year. By grasping the needs of International brand customers, promoting the rapid expansion of high-end new products, and cutting into the component business of complex parts of bar code scanning lens, it will maintain continuous growth momentum and competitive advantage. 2) On board optics: the sales volume of on-board lens front films increased by more than 90% year-on-year in 21 years, laying a foundation for the subsequent lens assembly business; Lidar cooperates with quanergy, Hesai, innoviz, Magna, innovusion, Beixing Photonics and other well-known customers at home and abroad, and has won more than 10 fixed-point cooperation projects, with an income of more than 10 million yuan in 21 years, which is expected to increase significantly in 22 years. In addition, in terms of lidar business, the company has expanded horizontally from passenger cars to non vehicle regulation applications in the market with greater demand, and vertically from parts to OEM of complete machines, so as to further strengthen its comprehensive competitive advantage and open up space for growth in the future.
The company continued to invest in technology research and development, and the proportion of high-end microscope shipments increased: the company invested 63.07 million yuan in research and development in 2021, a year-on-year increase of + 33%, and CAGR reached 20% in 201621. The continuous R & D investment helped the company overcome the core technology of high-end microscope. In 2021, the company completed the R & D of laser confocal microscope system and the preparation technology of endoscope core lens, realizing the launch of China’s first space fluorescence microscope experimental device with the “Tianhe” core module. In 2021, the company’s high-end optical microscope brand nexcope series product revenue exceeded 60 million yuan, with a year-on-year increase of more than 50%. The continuous increase in the proportion of high-end microscope shipments will further boost the company’s revenue growth and profitability.
Investment suggestion: considering the impact of the epidemic and the tight supply chain, we appropriately reduce the profit forecast. It is estimated that the net profit attributable to the parent company in 202224 will be 240 / 30 / 390 million yuan (the corresponding value before 202223 will be 260 / 330 million yuan), and the corresponding PE will be 33 / 27 / 21 times, maintaining the “buy” rating.
Risk tip: there is a risk that the intelligent upgrading of vehicles is not as expected, the launch of high-end new products is not as expected, and the information and data used in the research report are not updated in time.
