\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 02 Eoptolink Technology Inc.Ltd(300502) )
The operating performance of 2022q1 increased steadily, and the performance of 2021 was in line with expectations. In 2022q1, the company’s revenue reached 739 million yuan, a year-on-year increase of 18.29%; The net profit attributable to the parent company was 132 million yuan, with a year-on-year increase of 17.81%, and the operating performance maintained growth. In 2021, the company’s revenue reached 2.908 billion yuan, a year-on-year increase of 45.57%; The net profit attributable to the parent company was 662 million yuan, a year-on-year increase of 34.60%, and the annual performance was in line with expectations. The performance growth was mainly due to the company’s breakthroughs and progress in R & D projects related to high-speed optical modules, silicon optical modules and coherent optical modules, and the operating revenue of high-speed optical modules increased significantly compared with the same period of last year. With the rapid development of IDC market and the continuous promotion of 5g network construction, the company will further consolidate its competitive advantage and is expected to become one of the core suppliers in the global optical communication industry chain, bringing steady growth of performance.
Breakthroughs in optical module R & D enhance core competitiveness, and global market development helps increase market share. The company’s revenue continues to grow rapidly in 2021. Among them, the revenue of point-to-point optical module business was 2.840 billion yuan (revenue of more than 4.25g was 2.640 billion yuan and revenue of less than 4.25g was 200 million yuan), a year-on-year increase of 46.26%. The production capacity of the company’s point-to-point optical modules increased by 490000, the output increased by 1.02 million, the sales volume increased by 1.29 million, and the gross profit margin decreased by 4.97%. PON optical module business realized about 430941 million yuan, with a year-on-year increase of 25.61%. The revenue of component business was 25.293 million yuan, a year-on-year increase of 15.37%, and the development of various businesses maintained a growth trend. The company’s overseas business revenue reached 2.273 billion yuan (accounting for 78.17% of the revenue), with a year-on-year increase of 105.06%. In recent years, the revenue in overseas markets has maintained a high growth rate. The company continues to promote the global layout, deeply participates in the market competition of silicon optical module, coherent optical module and silicon photonic chip technology, and further improves the competitiveness of the company in the optical module industry. The company continued to increase R & D investment, and the annual R & D expenses reached 108 million yuan, with a year-on-year increase of 27.43%, accounting for 3.73% of the annual revenue. In terms of silicon optical technology and optical module research and development, the company has established a unique silicon optical product system to help realize silicon photonic integration technology, which is expected to seize the high-end customer market; High rate optical modules are developed for typical applications and are widely used in the construction of data centers and telecommunications markets; The research and development of long-distance transmission high-speed optical module meets the development needs of long-distance transmission and data communication network, and helps major network operators upgrade network bandwidth smoothly; The research and development of low-power high-speed optical modules continues to reduce the demand for energy consumption of communication systems and help the green development of digital economy. With the continuous improvement of the number and density of IDC network ports, the cost proportion of optical modules, the key components of interconnection, is gradually increasing. The breakthrough of the company’s R & D technology is expected to improve the market competitiveness and market share at home and abroad.
The steady progress of the new infrastructure has driven the prosperity of optical communication upward, and the industry concentration has brought steady growth in performance. The demand for high-speed optical module products in the global market has increased significantly. It is expected that CAGR in 2021e-2026e market will grow in double digits and the market prosperity will rise. During the 14th Five Year Plan period, the national system layout of new communication and data center infrastructure has become an important driving force for China’s economic transformation and upgrading. With the steady progress of communication infrastructure, the company is expected to usher in a new round of market opportunities. After more than ten years of development, the company now has more than 3000 kinds of products, which are sold to more than 60 countries and regions and more than 300 customers around the world. It has high brand advantages and influence among customers in this industry and is expected to benefit from the thickening of performance brought by industry concentration. According to the 2021 annual performance report, we give the company the predicted net profit attributable to parent company from 2022e to 2024e of 799 million yuan, 951 million yuan and 1.122 billion yuan, corresponding to EPS of 158 million yuan, 188 yuan 2.21 yuan, corresponding to 16.45 times, 13.82 times and 11.71 times of PE, with “recommended” rating.
Risk tips: global epidemic impact and China’s foreign policies; Exchange rate fluctuation risk; Integration risks brought by mergers and acquisitions and external expansion; The promotion of new products is less than expected, and the competition in the market is intensified.
