\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 94 Suzhou Tfc Optical Communication Co.Ltd(300394) )
Key investment points
Event: in the first quarter report of 2022, the company achieved an overall operating revenue of 283 million yuan, a year-on-year increase of 16.18%; The net profit attributable to the parent company was 83 million yuan, with a year-on-year increase of 18.09%, and the net profit attributable to the parent company after deducting non capital was 77 million yuan, with a year-on-year increase of 11.82%. The performance was in line with our expectations.
In the first quarter, the orders were delivered stably and the revenue maintained steady growth: on the revenue side, the company actively coordinated logistics and production during the epidemic period, ensured the stable delivery of orders and realized the stable growth of the company's revenue growth. Among them, the demand of telecom market is in a weak state; Due to the increasing demand of traffic in the digital communication market, the demand for optical device products continues to grow steadily. The lidar sector is currently in the early stage of R & D and trial production, which has no significant impact on the company's performance. From the perspective of net interest rate, Q1 in 2022 achieved a net interest rate of 29.57%, an increase of 0.43pp compared with 2021q1 (29.14%), and the profitability remained stable. On the cost side, the growth rate of the company's operating costs increased by 27.15% over the previous period. In addition to the year-on-year increase in operating costs caused by sales growth, the rise in raw materials and labor costs and the impact of product structure led to an increase in the overall cost rate.
The management and control of the three major expenses are relatively reasonable, increasing R & D investment and strengthening the core technology advantages: from the cost side, the sales expenses increased by 20.12% year-on-year, mainly due to the increase of exhibition expenses in the first quarter of 22, with a cost rate of 1.44%; The administrative expenses decreased by 16.57% year-on-year and 22.09% month on month, mainly due to the significant reduction of business exchanges caused by the epidemic, and the expense rate was 6.04%; From the expense side, the increase in sales expenses reflects the growth of the company's overall step-by-step production and sales in the first quarter. Various expenses are well controlled and the profit structure is continuously optimized and improved. From the perspective of R & D investment, the R & D expenses incurred in Q1 in 2021 were 269208 million yuan, with a year-on-year increase of 23.29% and a month on month increase of 52.34%, accounting for 9.52% of operating revenue. Suzhou Tfc Optical Communication Co.Ltd(300394) continued to increase R & D investment and strengthen the leading edge of core technology competitiveness.
Deeply cultivate the depth of optical module Telecom and digital communication market, open up new tracks and release industrial growth space: in the telecom market, it is expected that the production capacity will gradually recover after China's 5g demand is implemented. In the digital communication market, the company's high-speed optical engine project was delivered in batches last year for 400g / 800g and higher speed digital communication optical modules. In addition, the development of new fields such as lidar and medical detection will bring new sales growth points.
Profit forecast and investment rating: the company is deeply engaged in the telecommunications market and digital communication market of the optical communication industry, and develops businesses in new fields such as lidar and medical testing. We expect EPS to be 0.98/1.20/1.46 yuan respectively from 2022 to 2024, and the PE valuation corresponding to the current share price is 21 / 17 / 14x respectively. Taking into account the company's competitive pattern, industry barriers and the delivery of new products, we continue to be optimistic about the steady growth of Suzhou Tfc Optical Communication Co.Ltd(300394) future performance, Maintain the "buy" rating.
Risk tip: the expansion of new fields of optical modules is not as expected; The infrastructure construction of high-speed optical module is less than expected
