Changguang Huaxin (688048)
Event: on April 27, 2022, the company released the first quarterly report of 2022. In the first quarter of 2022, the company achieved an operating revenue of 112 million yuan, a year-on-year increase of 43.56%; The net profit attributable to the parent company was 28 million yuan, with a year-on-year increase of 45.73%.
Rapid growth in performance and high gross profit margin and net profit margin: benefiting from the improvement of market demand, the further growth of the company's production capacity and the expansion of enterprise scale, the company achieved an operating revenue of 112 million yuan in the first quarter of 2022, a year-on-year increase of 43.56%; The net profit attributable to the parent company was 28 million yuan, with a year-on-year increase of 45.73%. Benefiting from the improvement of the company's production capacity and yield, the company's gross profit margin and net profit margin have increased significantly compared with 2019 and 2020. The gross profit margin of 2022q1 company is 50.19% and the net profit margin is 24.67%. Overall, the company's performance achieved rapid growth, and the gross profit margin and net profit margin remained high.
Focusing on the semiconductor laser industry, the product technology is comparable to the foreign advanced level: the company focuses on the semiconductor laser industry and always focuses on the R & D, design and manufacturing of semiconductor laser chips. At present, the company has formed a four category and multi series product matrix composed of semiconductor laser chips, devices, modules and direct semiconductor lasers. It is a vertical industrial chain company in the semiconductor laser industry. The company has built IDM whole process process platforms and 3-inch and 6-inch mass production lines covering chip design, epitaxial growth, wafer processing technology (lithography), cleavage / coating, packaging test, optical fiber coupling, etc., which are applied to the development of a variety of semiconductor laser chips. It is one of the few companies that research, develop and mass produce high-power semiconductor laser chips. The company's products can be widely used in optical pump laser pump source, direct semiconductor laser output processing application, laser intelligent manufacturing equipment, national strategic high technology, medical beauty, lidar, intelligent security, consumer electronics, 3D sensing and camera and other fields. The company's single tube chip can produce mass power of 30W, wavelength range of 8081064nm, electro-optic conversion efficiency of 60% to 65%, and the product technology level is synchronized with the foreign advanced level.
The market share of high-power semiconductor laser chips ranks first in China: according to the company's prospectus, the global laser chip market will be about 1.83 billion yuan in 2020, and the Chinese laser chip market will be about 529 million yuan. The high-power semiconductor laser chips, devices, modules and other products independently developed by the company have been widely used in advanced manufacturing and other fields, filling the gap of domestic high-end semiconductor laser chips and devices, solving the "neck" problem in China's high-power laser field, promoting the overall improvement of key technical indicators of semiconductor laser chips and devices, and promoting high-power solid-state lasers, fiber lasers Ultrafast lasers and other lasers have moved from scientific research laboratories to industrial applications. According to the company's prospectus, the company's global market share of high-power semiconductor laser chips is 3.88%, and the Chinese market share is 13.41%, ranking first in China. With the deepening of the localization of laser chips and the continuous improvement of the company's strength, the company's market share is expected to rise further.
Semiconductor laser products serve major downstream manufacturers and expand VCSEL chip and optical communication chip business: the company's semiconductor laser chip has the characteristics of high power, high efficiency, high brightness and high reliability, and is widely used in various business fields. In the field of industrial lasers, optical and electrical components such as high-power semiconductor laser single tube chips, devices and optical fiber coupling modules produced by the company have been used as pump sources in the mass production of downstream industrial lasers, which can realize the output of 700W light source. The company has established cooperative relations with Wuhan Raycus Fiber Laser Technologies Co.Ltd(300747) , Chuangxin laser, Han'S Laser Technology Industry Group Co.Ltd(002008) , Feibo laser, Huari precision, belling laser and other major laser manufacturers in China. In the field of material processing, the direct semiconductor laser products produced by the company have been applied to downstream laser equipment manufacturers. The company has established cooperative relations with Huagong laser, Han'S Laser Technology Industry Group Co.Ltd(002008) , Wuhan Dr Laser Technology Corp.Ltd(300776) and other manufacturers. In the field of national strategic high technology and scientific research, the company's high-power bar series products can realize continuous pulse (CW) 50-250w laser output and quasi continuous pulse (QCW) 5001000w laser output, with electro-optic conversion efficiency of more than 63%, and have served many national backbone units. In addition, the company's products have expanded the field of VCSEL chips and optical communication chips. The high-efficiency VCSEL series products developed by the company have passed the Process Certification of relevant customers. The maximum conversion efficiency of VCSEL chip is more than 60%. The product performance indicators are synchronized with the foreign advanced level, and have obtained mass production orders. The product application field has been extended to the field of lidar and 3D sensing. In terms of optical communication chip series products, the company has established a complete process line including epitaxial growth, grating fabrication, strip etching, end face coating, dicing and splitting, characteristic testing, packaging screening and chip aging, and has the whole process production capacity of wafer manufacturing, chip processing and packaging testing.
Investment suggestion: the company is a leading semiconductor laser chip manufacturer in China, with complete product matrix, customer resource advantages and strong R & D strength. We estimate that the company's operating revenue from 2022 to 2024 will be 710 million yuan (+ 65.5%), 1016 million yuan (+ 43.1%) and 1456 million yuan (+ 43.3%) respectively; The estimated net profit attributable to the parent company is 188 million yuan (+ 62.7%), 274 million yuan (+ 45.8%) and 411 million yuan (+ 50.3%) respectively; The corresponding EPS is 1.38, 2.02 and 3.03 yuan respectively. We gave the company 64 times PE in 2022, corresponding to the target price of 88.32 yuan, covering it for the first time, and gave it a "Buy-A" investment rating.
Risk warning: the risk of intensified market competition, new product development and expansion of new application fields, iterative technology upgrading and unsustainable government subsidies
