\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 47 Wuhan Raycus Fiber Laser Technologies Co.Ltd(300747) )
Event overview: the company released the first quarterly report of 2022. In 2022q1, the company achieved a revenue of 701 million yuan, a year-on-year increase of + 20.13%; The net profit attributable to the parent company was 21 million yuan, a year-on-year increase of – 81.01%; Deduct the net profit not attributable to the parent company of 18 million yuan, a year-on-year increase of – 83.01%.
The product technical advantages are superimposed, the price is reduced, the market is opened up, and the revenue maintains growth. In 2022q1, with the slowdown of downstream industry demand and the repeated epidemic in China, the company achieved a revenue of 701 million yuan, a year-on-year increase of + 20.13%, exceeding market expectations. The main reasons for the company’s revenue to rise against the trend are as follows: 1) in the highly competitive market, the company quickly seizes the market share by reducing the price, accelerates the market expansion and improves the market share; 2) The company’s products have high-level technical advantages. Low and medium power CW lasers are technologically advanced in the same industry and have a solid leading position. The market development of high-power CW lasers and ultrafast lasers has been smooth and entered the rapid volume stage, providing support for the growth of the company’s revenue.
Under the influence of multiple factors, the profitability has declined seriously. The year-on-year net profit of the parent company was -2q1.06 billion, with a serious year-on-year decline of -2.601 billion; In terms of gross profit margin, the gross profit margin of 2022q1 company was 21.19%, with a year-on-year decrease of – 14.76%. The gross profit margin of 2022q1 company decreased seriously, mainly due to 1) the price reduction strategy adopted by the company to develop the market and increase the market share, resulting in the decline of gross profit margin; 2) Due to the long logistics chain of the industry and the slowdown of downstream demand, the company’s high-cost inventory in the early stage is large, and the cost reduction measures are less than expected; 3) Repeated outbreaks have led to limited logistics. In terms of period expense rate, the period expense rate of 2022q1 company was 16.41%, with a year-on-year increase of + 4.88pct; the sales expense rate, management expense rate, financial expense rate and R & D expense rate were 3.62%, 12.14%, 0.65% and 9.96% respectively, with changes of – 0.6pct, + 5.2pct, + 0.28pct and + 4.96pct respectively. The large change in R & D expense rate is mainly due to the large R & D investment of the company in new product business.
New application fields have been continuously developed, and new products have been expanded smoothly. While stabilizing the leading position in the laser industry, the company continues to explore new application fields of products and promote the market expansion of new products. The company has actively promoted product sales in new fields such as new energy, 3C electronics, automobile manufacturing and shipbuilding, and has achieved certain results at present; In terms of product development, the company actively promotes the market promotion of high-power CW lasers and ultrafast lasers. At present, the market promotion is smooth. In 2021, the company sold more than 2380 high-power 10000 watts and above, with a year-on-year increase of + 243%, and more than 59006000W and above high-power lasers, with a year-on-year increase of + 175%; Ultrafast laser achieved a revenue of 112 million yuan in 2021, a year-on-year increase of + 103.64%. The smooth expansion of new products provided support for the company’s revenue growth.
Investment suggestion: we expect the company to achieve a revenue of 4.542/55.64/6.838 billion yuan from 2022 to 2024, and the net profit attributable to the parent company is 6.55/8.42/1.119 billion yuan respectively. The corresponding PE of the current stock price is 19 / 15 / 11 times respectively, maintaining the “recommended” rating.
Risk tip: the demand of downstream industries is less than expected, the development of new product market is less than expected, and the market competition is intensified.
