Juguang Technology (688167)
The high-speed growth of performance is in line with expectations, and the strategic layout is advancing smoothly
The company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the revenue was 476 million yuan, a year-on-year increase of 32.21%; The net profit attributable to the parent company was 68 million yuan, a year-on-year increase of 94.33%; Deduct non net profit of 49 million yuan, an increase of 148.35% year-on-year. In 2022q1, the revenue was 111 million yuan, a year-on-year increase of 20.77%; The net profit attributable to the parent company was 20 million yuan, with a year-on-year increase of 120.92%; Deduct non net profit of RMB 11 million, with a year-on-year increase of 539.86%, which is in line with expectations. During the reporting period, focusing on the deep layout of “generating photons and regulating photons” in the upstream of the laser, the company gradually expanded the broad market of “optical technology application solutions” in the midstream, and its performance is ready to go. We maintain that the net profit attributable to the parent company from 2022 to 2024 is expected to be 126 / 237 / 352 million yuan respectively, the corresponding EPS is 1.40 / 2.63 / 3.92 yuan / share respectively, and the PE corresponding to the current stock price is 60.7 / 32.4 / 21.8 times respectively, maintaining the “buy” rating.
The business was comprehensively promoted and the profitability was rapidly improved
In terms of business, in 2021, the company’s semiconductor laser / laser optics / automotive applications / optical systems achieved revenue of RMB 199 / 210 / 0.52/0.12 billion respectively, with a year-on-year increase of 42.53% / 15.32% / 77.56% / 220.78%. Strong technical barriers and solid implementation of strategies promoted the rapid development of various businesses of the company. In the first quarter of 2021 and 2022, the company achieved a gross profit margin of 54.26% and 54.55% respectively, maintaining a high level, mainly due to the improvement of the company’s production efficiency. With the expansion of scale and the establishment of the company’s advanced and efficient global business processes and organizational structure, the company’s expense rate has been effectively controlled and continued to decline. The expense rate in the first quarter of 2021 and 2022 was 38.58% and 37.36% respectively, with a year-on-year decrease of 4.98pct and 13.30pct respectively.
The barriers of core upstream components have been continuously consolidated, and the manufacturing processes of midstream lidar, medical beauty and semiconductor have been steadily promoted
In the field of laser upstream components, the company’s series of active / passive laser optical components and beam collimation conversion products have been shipped smoothly, and new product lines have been continuously expanded. In recent years, the company has expanded in prefabricated Gold Tin ceramic heat sink, optical coating and polymer optical lens. In the midstream field, the laser stripping of display panels and laser annealing equipment of semiconductor wafers have been delivered, and it is expected to gradually increase the volume in the long term; Hand held laser skin rejuvenation / hair removal products cooperate with customers at home and abroad, which is expected to extend from the medical market to the consumer market; Lidar has a comprehensive layout of optical components and laser transmitter modules. At present, two strategic customers have been signed, and the product line has been continuously improved. With the gradual implementation of lidar products from downstream customers, it will effectively promote the release of performance.
Risk warning: the epidemic disturbs the supply chain, the downstream demand is less than expected, and the exchange rate fluctuates sharply.
