\u3000\u3 Shengda Resources Co.Ltd(000603) 297 Ningbo Yong Xin Optics Co.Ltd(603297) )
Event: on April 25, the company released its 2021 annual report and 22q1 quarterly report. In 2021, the revenue will reach 795 million yuan, + 37.9% YoY; Net profit attributable to parent company: 261 million yuan, + 61.7% YoY; The gross profit margin was 42.8%, the same as last year. The performance of 22q1 was in line with expectations, with a revenue of 209 million yuan, + 21.2% YoY, a slight decrease of 2.4% month on month; The net income of non principal reserve fund decreased by about 5.4 billion yuan year-on-year, with a year-on-year decrease of about 1.1 billion yuan, and the net income of non principal reserve fund decreased by about 5.4% year-on-year; The gross profit margin was 40.3%, down 2.2pct month on month, mainly affected by the exchange rate brought by the appreciation of RMB.
Lidar customers continue to expand. The company has profound accumulation in the optical field and complete product orientation. It can provide various optical components required for optical path design for lidar manufacturers. The value accounts for about 20% of the whole lidar. At present, there are more than 10 designated customers, including quanergy, Hesai, innoviz, Magna, innovusion, Beixing photon, etc., with an annual income of more than 10 million yuan in 21 years. At the same time, the company has expanded the lidar customer base from the field of passenger cars and commercial vehicles to the special fields such as rail transit, industrial automation, intelligent security and the Internet of vehicles, and the products have also expanded from parts to the whole machine OEM of lidar (the whole machine assembly service focuses on the field of non passenger cars). According to the prediction of the company, the lidar business is expected to enter the fast lane of growth in 23-25 years, with prominent incremental revenue. In terms of vehicle optics, the company began to trial produce lens precursors for Sony in 15 years and entered Nissan’s supply chain. At present, the annual output has exceeded 7 million. In 21 years, the sales of vehicle lens precursors increased by more than 90% year-on-year, laying a solid foundation for the company to enter the vehicle lens assembly business. Under the situation that the five-year plan is successfully achieved, we expect the 25-year revenue of the company’s vehicle and lidar business to reach 700900 million yuan, and the proportion of revenue is expected to increase to 25-30%.
The substitution of high-end domestic microscopes continued to advance. Benefiting from the domestic substitution of high-end instruments, the microscope business revenue in 21 years increased to 295 million yuan, + 18.8% YoY, and the gross profit margin increased to 37.5%, of which the revenue of high-end brand nexcope series exceeded 60 million yuan, + 50% yoy. At present, the company’s self-developed high-end confocal microscope (with a unit price of one million yuan) has more than 20 Trial customers. This year, the shipment volume is expected to increase several times, the product structure is optimized, and the gross profit margin is expected to be further raised.
Bar code scanning and machine vision grew steadily. Benefiting from the increased demand for logistics control, the company’s bar code scanning lens shipments increased by more than 60% in 21 years, and its customers covered major brands of bar code equipment in the world, including zebra, Xunbao technology, Honeywell, delijie, NCR, Cognex, etc. With the growth of downstream major customers, the company accelerated its entry into the component business of complex part of bar code scanning lens, so as to improve its market share and competitive advantage in subdivided fields. In terms of machine vision, the high-speed focusing liquid lens developed by the company has been imported into Cognex and zebra to realize small batch shipment. From the perspective of downstream demand and order visibility, we expect the business to maintain steady growth.
Maintain the rating of “better than the market”, and the target price is 132 yuan / share. It is estimated that the company’s revenue in 22-24 years will be 1.06/14.8/2.04 billion yuan respectively, with a change range of – 2% / 1% / 2%, and the net profit attributable to the parent company will be 264 / 364 / 491 million yuan respectively, with a change range of – 2% / – 1% / 0%. Considering the uncertainty of the macro environment and the logistics delay caused by the epidemic, we appropriately lowered the PE valuation of the company (45x2023pe in the previous time) and gave the company 40 times 2023pe, corresponding to the target price of 132 yuan / share in the next year (150 yuan / share in the previous valuation, down 12%), maintaining the rating of “better than the big market”.
Risk tips: 1) microscope business demand does not meet expectations; 2) Industry competition intensifies; 3) The R & D and customer expansion of vehicle lens and lidar components did not meet expectations.
