According to the 2021 annual report released by Huagong Tech Company Limited(000988) ( Huagong Tech Company Limited(000988) , SZ) after restructuring and optimization, during the reporting period, Huagong Tech Company Limited(000988) achieved a revenue of 10.167 billion yuan, a year-on-year increase of 65.65%; The net profit attributable to the parent company was 761 million yuan, a year-on-year increase of 38.24%. Deduct non net profit of 544 million yuan, an increase of 53.12% year-on-year. This is also the first time that the company’s operating performance has exceeded 10 billion yuan, the highest level in history.
In 2022, the three core businesses of Huagong Tech Company Limited(000988) connection, perception and intelligent manufacturing continued to develop. The first quarterly report of 2022 released by the company showed that during the period, the company’s sales revenue was 2.858 billion, a year-on-year increase of 59.81%, net profit was 226 million, a year-on-year increase of 98.73%, and net profit deducted increased by 109.7%. The revenue and profit of a single quarter reached a record high, and the profitability improved.
On April 30, Huagong Tech Company Limited(000988) Chairman Ma Xinqiang said that the company’s current performance is related to the maturity of the company in R & D, marketing and delivery management. The company will increase its investment in innovation through many controllable factors. According to the data, Huagong Tech Company Limited(000988) 2021 R & D investment increased by 23.72% year-on-year and 24.72% year-on-year in the first quarter.
In terms of product structure, in the second half of 2021, the sales volume of Huagong Tech Company Limited(000988) flagship new energy vehicle PTC heater continued to rise, and the delivery volume in the first quarter of 2022 increased three times compared with the same period last year. In addition, the pressure sensor products independently developed by the subsidiary Huagong Gaoli have entered the stage of small-scale mass production and are expected to be introduced into automobile enterprises in early July. The company said that the batch delivery of the product means the localization of domestic pressure sensors, breaking the industry market pattern dominated by American and German enterprises for a long time. Compared with similar products, the delivery efficiency is doubled and the price is reduced by 30%.
“The pressure sensor is a completely new track. From product design, raw material development, verification and optimization, to the construction of sample line, mass production line and reliability laboratory, everything needs to start from ‘zero’,” said Nie Bo, general manager of Huagong Gaoli.
At present, Huagong Tech Company Limited(000988) has built a mass production line and a full performance special laboratory with a production capacity of 5 million pieces / year, which can cooperate with customers to complete the production of various pressure sensor samples, and fully test and verify the reliability of products to ensure zero risk for customers Huagong Tech Company Limited(000988) indicates that the pressure sensor has the same wide application and large demand as the temperature sensor.
As one of China’s leading optical module enterprises, the core subsidiary huagongzhengyuan is mainly responsible for the business of optical communication devices. According to the annual report of 2021, during the reporting period, the revenue of the company’s photoelectric device series products accounted for more than 50%, and the revenue of the optical communication device business always maintained a leading position; Followed by laser processing products, accounting for 25.64%; Sensitive components and laser anti-counterfeiting products accounted for 13.9% and 4.8% respectively. In 2021, the gross profit margins of the company’s optical communication business, laser processing business, sensitive components and laser holographic anti-counterfeiting products were 7.09%, 30.34%, 21.59% and 35.51% respectively. It is worth noting that the laser processing business accounts for the highest proportion of the company’s gross profit.
The optical connection business benefits from the continuous deepening of China’s digital economy strategy and the continuous growth of the downstream IDC market. 5g wireless small stations will bring clear increment to the optical connection business. In addition, Guolian Securities Co.Ltd(601456) analysts believe that the market scale of optical modules will maintain a growth rate of about 20% in the next few years and is expected to reach 39 billion in 2023.
The company said that since the fourth quarter of last year, the sales scale of Huagong Zhengyuan digital communication optical module has increased nearly fourfold, introducing a number of Internet leading enterprises outside China. At the same time, the company accelerated the introduction of domestic optical chips and improved the market competitiveness of high-speed optical modules. In this regard, Hu Changfei, general manager of Huagong Zhengyuan, said that the company will continue to develop high-end optical modules in data center, transmission, access and other new applications.
Guolian Securities Co.Ltd(601456) analysts believe that China’s laser processing equipment industry is still in the growth stage, and the scale of China’s laser equipment manufacturing enterprises is generally small. In the field of downstream laser equipment application, it has formed a leader in consumer electronics, new energy vehicles and other fields represented by Han’S Laser Technology Industry Group Co.Ltd(002008) , Huagong Tech Company Limited(000988) and Huagong Tech Company Limited(000988) at present; It is a leader in subdivided fields represented by Shenzhen United Winners Laser Co.Ltd(688518) focusing on power battery field and Shenzhen Sunshine Laser & Electronics Technology Co.Ltd(300227) focusing on 3C field. In 2020, the Han’S Laser Technology Industry Group Co.Ltd(002008) operating revenue was 11.942 billion yuan, accounting for 14% of the market share of laser equipment Huagong Tech Company Limited(000988) laser equipment related revenue was 1.888 billion yuan, with a market share of 2.93%. At present, Huagong Tech Company Limited(000988) is promoting the large-scale implementation of digital intelligence factories in key industries of the national economy such as construction machinery, heavy industry and steel structure.
“We are increasing investment to accelerate the forging of core competitiveness in the fields of industrial Internet platform, machine vision and digital twin through collaborative innovation, so as to enhance the company’s enterprise value in the era of digital economy,” Ma Xinqiang said.