\u3000\u3000 Ningbo Yong Xin Optics Co.Ltd(603297) (603297)
Event: the company issued the announcement of performance increase in 2021. The net profit attributable to the owner of the parent company in 2021 is expected to be about 262 million yuan, an increase of 62% year-on-year; The net profit after deducting non recurring profits and losses is expected to be 157 million yuan, a year-on-year increase of 65%; The operating revenue is expected to be 803 million yuan, a year-on-year increase of 39%.
The volume of optical element components has increased and the business reserve resources are rich: the semi annual report disclosed that the company’s microscope and optical element fund-raising project will be put into operation at the end of 2020, and gradually realize the release of production energy in combination with the promotion of bar code and machine vision, vehicle optics, lidar, high-end optical instruments and other businesses. In the first half of 2021, the revenue growth of bar code lens, machine vision lens, vehicle lens front film and lidar optical element components in optical components exceeded 70% year-on-year. The ultra dural window technology independently developed by the company ranks first in the world, gradually replaces sapphire window, and has been applied to tens of thousands of desktop scanners. With the actual progress of downstream customers’ business, the on-board lidar lens and optical components are gradually promoted, and the lidar customer group is expanded to the field of rail transit and industry, and the products are expanded from components to the whole lidar OEM. The company has been deeply engaged in the field of microscope for decades and has accumulated good technical advantages and customer resources. The semi annual report disclosed that the company’s main microscope customers are Nikon, Leica Microsystems, unitedscope, Optika, accuscope, lomo, vision, etc. the company focuses on high-end microscope, embedded microscope products, vehicle optics, lidar The expansion of medium and high-end emerging businesses such as machine vision reserves customer resources for further expansion of business scale.
Downstream applications of optical components blossom in many places, and vehicle applications are expected to become new growth points: new optoelectronic products emerge frequently, involving daily consumption, entertainment, network, communication, intelligent manufacturing and other fields. In the bar code scanner lens market, the company has become the core optical component supplier of the four giants in the industry (Xunbao technology, Honeywell, delijie and NCR); The industrial upgrading of the projection market is driven by intelligent projectors and new light source projection technology. According to IDC consulting statistics, the total shipment of China’s projector market reached 4.62 million units in 2019. By 2024, the five-year compound growth rate of China’s projector market will exceed 14%; Laser TV is developing rapidly. According to the semi annual report of the company, it is estimated that 400000 sets will be shipped in the Chinese market in 2021, more than 1 million sets will be shipped in 2024, and the market scale will reach 100 billion yuan; Vehicle applications are growing rapidly. Lidar is the core and key sensor of automatic driving. At present, it is in the stage of commercialization. According to yole, the market revenue of automatic driving lidar will reach US $31.5 billion in 2032, with a compound annual growth rate of more than 50%. The downstream market has broad prospects, bringing incremental demand for the company’s optical components.
The company has increased R & D investment and strong R & D strength: according to the disclosure of the company’s third quarter report, the company’s R & D expenditure in the first three quarters of 2021 was 46.1 million, a year-on-year increase of 34.9%, and actively developed new fields such as automatic driving, lidar and machine vision. After years of independent research and development, the company has mastered a number of core technologies. As of the first half of 2021, the company has 94 patents, including 23 invention patents. In addition, the company has participated in provincial and ministerial level and above scientific research projects for many times and won awards. The super-resolution optical micro nano micro imaging technology jointly developed by the company and Zhejiang University won the second prize of national technological invention in 2019, and led the project of “research and industrialization of high-resolution fluorescence micro imager” of the Ministry of science and technology. The company leads the preparation of one international standard, participates in the formulation of four international standards, leads or participates in the preparation of 89 national and industrial standards and one group standard, and is the leader of industrial standards. In 2021, the Optoelectronic Science and engineering branch of Ningbo Research Institute of Zhejiang University jointly built by the company and Zhejiang University has introduced three research teams of Zhejiang University and two technological innovation platforms such as “Ningbo advanced optoelectronic technology innovation public service demonstration platform” to promote the industrialization of advanced technology.
Investment suggestion: we estimate that the company’s revenue from 2021 to 2023 will be RMB 802 million, RMB 1107 million and RMB 1528 million respectively, and the net profit attributable to the parent company will be RMB 262 million, RMB 318 million and RMB 371 million respectively. We give the “overweight-a” investment rating for the first time.
Risk warning: the prosperity of the industry is lower than the expected risk; Risk of new product market expansion; Technology update iteration risk.
