\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 47 Wuhan Raycus Fiber Laser Technologies Co.Ltd(300747) )
The company released the first quarterly report of 2022, and the profitability of Q1 decreased. In 2022, Q1 company achieved an operating revenue of 701 million yuan, a year-on-year increase of 20.13%, and a net profit attributable to the parent company of 21 million yuan, a year-on-year decrease of 81.01%. On the whole, under the background of the decline of manufacturing industry in the first quarter, the prosperity of the laser industry was also affected to a certain extent. The company continued to strengthen its market competitive advantage and made continuous efforts on the price side and product side, so that Q1 revenue still maintained a relatively excellent growth. Under the adjustment of product prices, the company continued to produce large quantities of high-power products, and the market share is expected to be further improved compared with the end of 2021.
Price cuts and rising raw material costs suppressed the gross profit margin, and the company’s net profit fell significantly year-on-year. In 2022, the gross profit margin of Q1 sales of the company was 21.19%, a year-on-year decrease of 8.16%, and the net profit margin of sales was 3.06%, a year-on-year decrease of 11.66%. We believe that the decline of the company’s gross profit margin is mainly due to the adjustment of the prices of some products in order to further improve the market share in the first quarter. At the same time, due to the impact of the epidemic, the decline in the demand of the laser industry caused by the decline in the outlook of the manufacturing industry, the progress of the company’s cost reduction measures in Q1 failed to meet the expectations, and the cost reduction rate failed to catch up with the price reduction rate. The dislocation of the two led to the decline of the company’s gross profit margin. In terms of net profit margin, in addition to the impact of gross profit margin, the company’s R & D expenses in Q1 remain at a high level. The R & D expense rate in Q1 is 9.96%, with a year-on-year increase of 4.96%. High R & D investment also further puts pressure on the company’s net profit margin to a certain extent.
10000 watt laser is expected to accelerate the volume, and continue to be optimistic about the accelerated growth of the company in new application fields. In 2020, China’s high-power laser market accounted for 57.6%. Under the background of accelerating the localization process of high-power laser, the company’s 10000 watt laser is expected to accelerate the volume. In 21 years, the company sold more than 238010000 watt laser products, an increase of 243% compared with 2020. In addition, the company has continued to make efforts in high-end applications such as new energy power batteries, rail transit, automobiles and spare parts, shipbuilding, etc. cleaning products have formed batch cooperation with many industry leading customers. Pulse products have been verified and tested in small batches in high-end industries such as polar ear cutting, silicon rod grooving, photovoltaic applications, etc. the company’s market share in China has exceeded IPG for the first time in 21 years, and it is expected that the company’s market share will further increase in 22 years, The leading position of the domestic industry will be further consolidated, and the cultivation of new application scenario products will gradually mature, which will shape a new growth curve for the company. The large volume of new products with high gross profit will also strengthen the profitability of the company, and the release of performance has good certainty.
Profit forecast and valuation. It is estimated that from 2022 to 2024, the company will achieve revenue of 4.399 billion yuan, 5.532 billion yuan and 6.486 billion yuan, and the net profit attributable to the parent company will be 614 million yuan, 877 million yuan and 1.098 billion yuan respectively. The corresponding PE of the current stock price is 20.4, 14.3 and 11.4 times respectively, maintaining the “overweight” rating.
Risk tip: the laser price war continues, and the prosperity of the industry is declining
