Juguang Technology (688167)
[matters]
Juguang technology uses some over raised funds and self owned funds to invest in the construction of Juguang technology medical and health industry base. According to the strategic development of the company, the subsidiary Ju Guang (Dongguan) micro optics Co., Ltd. plans to sign the investment agreement for investment promotion projects with the Management Committee of Shaoguan high salary technology industry development zone, and plans to invest in the "Ju Guang Technology Medical and health industry base project", with an estimated total investment of 500 million yuan.
[comment]
A trusted global provider of photonic application solutions. Founded in 2007, Juguang technology is mainly engaged in high-power semiconductor laser components (generating photons) upstream of the laser industry. After the acquisition of limo in 2017, it has the technical ability of laser optical components (regulating photons). The company has diversified layout around generating photons and regulating photons, and continues to make market breakthroughs, At the same time, actively expand the photon application modules and system solutions in the middle reaches of the laser industry. By investing in the medical and health industry base project, the company will make use of its accumulated technical advantages in the upstream core components of the industry and rich product development experience in the medical and health field, which will help to enhance the company's competitiveness and sustainable profitability, improve the industrialization layout, and improve the company's business scale and core competitiveness, It is expected to achieve large-scale commercial application expansion in the middle reaches of the laser industry, household medical and health fields. In 2020, the company's revenue was 360 million yuan and the net profit attributable to the parent company was 34.87 million yuan. In 2021, the company's revenue is expected to be 460-480 million yuan, with a year-on-year increase of 27.82% - 33.38%, and the net profit attributable to the parent company is expected to be 60-70 million yuan, with a year-on-year increase of 72.07% - 100.75%.
Technical advantages bind key customers and multi-point flowering of downstream applications. At present, the company has four major businesses: semiconductor laser, laser optics, automotive applications and optical systems. Through technical advantages, the company actively clamps and binds key customers. At present, the company has the first mover advantage in the vehicle field, and the degree of customization of lidar emission module is high. Its products include solid-state area light source for flashlidar, high peak power VCSEL area light source, peak power linear light source for scanning hybrid solid-state lidar and area light source for driver monitoring system. In 2019, the company has cooperated with the world's leading automotive Tier-1 company continental group for a fixed-point project of 400 million yuan to clarify the needs in the next five years. At the same time, the company has sold products to well-known customers in velodyne, luminar, argoai and other industries. In the field of semiconductor process, the company's light field homogenizer is applied to the exposure system of lithography machine to realize uniform exposure of wafer surface and improve yield. The products are applied to major lithography machine R & D projects and prototypes in China, and supplied to company a, the world's top optical enterprise, and finally applied to the core equipment of global high-end lithography machine manufacturers. Semiconductor wafer annealing products have also received orders from mainstream wafer factories. In the field of medical beauty, the company's products are widely used in laser fluorescence imaging, laser hair removal, noninvasive fat dissolution and other scenes. In 2020, the company signed a cooperation agreement with cyden in the UK for a total of 870 million yuan in the next five years to exclusively supply cyden with lasers in medical beauty products.
Fund raising actively expands production, and the prospect of laser industry is promising. The company publicly issued 22.49 million ordinary shares. After deducting the issuance expenses, the raised funds will be invested in Dongguan micro optics and application project of Juguang technology, industrialization project of lidar transmitting module, construction project of R & D center, etc. Among them, the main products of Dongguan micro optics are laser optical components, with a total planned investment of 260 million yuan. The design production capacity is 26 million laser optical components per year, and the construction period is 2 years. The project will greatly increase the production capacity of laser optical components and better meet the needs of customers at home and abroad. The total investment of the lidar transmitting module project is planned to be 160 million yuan, with a design capacity of 3 million lidar transmitting modules per year and a construction period of 2 years. It is expected that the implementation of the project will further improve the market sales scale, improve the market share of products and strengthen the product quality control. It is expected to benefit from the explosive growth of industry demand in the future.
[investment advice]
It is estimated that the company's revenue from 2021 to 2023 will be 468, 668 and 1291 million yuan respectively, the net profit attributable to the parent company will be 62, 128 and 219 million yuan respectively, the EPS will be 0.79, 1.63 and 2.78 respectively, and the corresponding PE will be 277, 135 and 79 times respectively. At present, the laser industry is in the stage of rapid development. Applications such as lidar, semiconductor process and medical beauty are in the ascendant. The company's technical ability is leading, and the customer card position is forward-looking. Give the company an "overweight" rating.
[risk tips]
The penetration of on-board lidar is less than expected: at present, the penetration of lidar has just started, and the demand for lidar by automatic driving solutions in the future is less than expected, which will put pressure on the company's performance.
The tight chip supply pattern continues: the tight chip supply is the constraint of the current downstream product shipment growth. If the tight chip supply continues, it will have an impact on the company's performance.
The sharp fluctuation of exchange rate has a certain impact on the company's production and operation
