\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 94 Suzhou Tfc Optical Communication Co.Ltd(300394) )
In the first quarter of 2022, the company's operating revenue and profit achieved steady growth. In 2022q1, the company realized an operating revenue of 283 million yuan, a year-on-year increase of 16.18%; The net profit attributable to the parent company was 82.9 million yuan, a year-on-year increase of 18.09%; The net profit attributable to the parent company after non deduction was 76.71 million yuan, a year-on-year increase of 11.82%. The net cash flow from operating activities was 119 million yuan, an increase of 40.21% year-on-year, with good payment collection. In the first quarter, under the background of repeated epidemics, the Arctic Optoelectronics in Shenzhen had the impact of shutdown. The company actively coordinated logistics and production to ensure the stable delivery of orders, and the overall operating results were relatively stable.
The gross profit margin in the first quarter was 49.69%, a year-on-year decrease of 4.35pct, Increased by 2.48 PCT month on month. The year-on-year decrease in gross profit margin is mainly due to the rise in raw materials and labor costs and the increase in the proportion of active product revenue (the gross profit margin of active products is lower than that of passive product lines). The month on month increase of gross profit margin is related to the product delivery structure and the company's cost control in the current quarter. Sales / management / R & D / financial expenses changed by 20.02% / - 16.58% / 23.29% / 47.00% year-on-year respectively. The increase of exhibition fee, exchange loss and R & D investment leads to the increase of sales, finance and R & D expenses respectively; Affected by the epidemic, business communication activities have decreased significantly, resulting in a decrease in management costs. The sum of the four major expense rates in 2022q1 was 16.38%, a decrease of 1.03pct compared with the same period of last year, The company maintains strong cost control ability.
The new product line continued to switch production to the new factory in Jiangxi. The company continued to expand the scale of workers in the first quarter. After training, new employees are expected to contribute to the increment from Q2. The company's resource integration ability is outstanding. The acquired high-quality assets such as Arctic optoelectronics have strong synergy with the original business at the levels of production, R & D and customers. Changing production is conducive to further give play to the company's cost control ability, and there is still room for improvement in subsequent profitability.
The demand of digital communication market continues to grow, and the increment of high-speed optical engine project is expected to gradually appear in the second half of the year. According to lightcounting statistics, the global Ethernet optical module is expected to continue to grow by 23% in 2022, and then maintain a compound growth rate of 14% from 2022 to 2027. The company's polarization maintaining devices, FA, AWG and other new products benefited from the growth of demand and continued to climb the slope for mass production. The high-speed optical engine project breaks through major customers and brings increment, and actively promotes the progress of cooperation with other customers. On the market side, the company actively entered the overseas market and new fields such as lidar and medical testing, laying a solid foundation for the company's long-term development.
Risk warning: the expansion of new products does not meet expectations; Deterioration of market competition; Acquisition and integration did not meet expectations.
Investment advice: maintain the profit forecast and maintain the "buy" rating.
Maintaining the profit forecast, the net profit attributable to the parent company is expected to be RMB 430 / 550 / 690 million from 2022 to 2024, with a year-on-year growth rate of 41 / 26% / 26%; The current share price corresponds to 17 / 13 / 11 times PE. Maintain the "buy" rating.
