Author | Sun Dong
It takes about 6 minutes to read
A few days ago, Daqo Laser (002008.SZ) released its annual report for 2020 and the first quarter of 2021, which showed that in 2020, Daqo Laser realized operating income of 11.942 billion yuan, an increase of 24.89% year-on-year, and realized a net profit of 979 million yuan, an increase of 52.43%. growth of 52.43%. 2021 first quarter, realize operating income of 3.134 billion yuan, an increase of 107.54% year-on-year, realize net profit of 330 million yuan, an increase of 207.91% year-on-year.
In the year affected by the epidemic, can achieve good results, is really eye-catching.
From the scale of revenue alone, it seems that Daqi Laser has come out of the haze of 2019, but the gap in net profit is a reminder to investors that the best of times is yet to come. Just when will Daqi Laser step on the pace of steady growth again?
Embarrassing financial report
Revenue jumped but profit was only half of the year before.
Daqo Laser's big increase in earnings in the first quarter of this year is mainly due to the performance of the same period in 2020 was too weak. The performance of 2020, it seems that the size of the revenue to create a new high in history, but the profit is far from it.
Between 2017 and 2020, Daqi Laser realized revenue of 11.560 billion yuan, 11.029 billion yuan, 9.563 billion yuan, 11.942 billion yuan, 2020 compared to 2018 year-on-year growth of 8.28%, seems to have rebounded, but the company's net attributable profit of 1.719 billion yuan in 2018, while 2020 is only 979 million. Looking more closely at its financial report, the subject that eats into profits badly in 2020 is finance costs. And the current balance sheet has 4.907 billion yuan of money funds, bank borrowing balance of 1.549 billion yuan, convertible bond balance of 2.022 billion yuan.
It is worth noting that at the end of 2017, Da Nu Laser also had huge financial expenses, but the net profit of the mother of the year was 1.665 billion yuan, 686 million yuan more than at the end of 2020.
In terms of sub-products, Daqi Laser has two businesses, laser and automation supporting equipment contributed to most of the revenue, totaling 9.029 billion yuan, accounting for 75.6% of the proportion of the main business.PCB and automation supporting equipment realized revenue of 2.184 billion yuan, accounting for 18.28% of the proportion of the main business.PCB business is not a table for the time being, to see the traditional business.
Laser and automation supporting equipment, consumer electronics business is the top priority, between 2017 and 2020 to achieve revenue of 6.188 billion yuan, 4.751 billion yuan, 3.531 billion yuan, 5.712 billion yuan. It can be seen that this business gradually shrinks from 2017 to 2019, but grows against the trend in 2020 under the influence of the epidemic.
Next is the high-power laser intelligent equipment business, revenue between 2017 and 2020 were 2.074 billion yuan, 2.325 billion yuan, 2.038 billion yuan, 2.018 billion yuan, you can see that this part of the business to remain stable, in the public **** health incidents did not affect this part of the revenue.
Display panels and semiconductor-related business has made great progress in recent years, between 2017 and 2020 to achieve revenue of 510 million yuan, 899 million yuan, 963 million yuan, 1.027 billion yuan, 2020 compared to 2017 to achieve revenue doubled. According to the annual report, the business equipment in the chip and photovoltaic two industries gradually "bloom".
Earlier rumors in the market said that Daqi Laser has successfully developed a photolithography machine, in which the localization rate of the core devices has reached 90%, the current mainstream suppliers in the global photolithography industry is only ASML, Canon and Nikon three. An investor asked in the interactive platform, the secretary replied that "the company's lithography project resolution of 3-5μm, mainly focusing on applications in the field of discrete devices, LEDs and other areas, the relevant business accounted for a lower proportion of the company's operating income. The company's main business is still to provide laser, robotics and automation technology in the field of intelligent manufacturing system solutions." If the photolithography machine of Daqi Laser can realize the domestic substitution, its valuation may be pulled up again under the tense relationship between China and the United States.
The most surprised investors when the new energy lithium business, revenue between 2017 and 2020 were 547 million yuan, 641 million yuan, 1.109 billion yuan, 271 million yuan. This business began in 2017, three years of rising revenue, while 2020 fell into a deep valley. According to the annual report disclosure, this part of the business has obtained the order of ningde era, the amount of about 1.2 billion yuan, the delivery cycle is mainly concentrated in 2021, which also means that this part of the business can have a greater growth may have to wait until 2021. Although the large laser gave expectations, but did not explain the sharp decline in 2020.
Sources said that with many Internet companies to join the new energy car industry, power battery capacity expansion will continue to occur, and the resulting demand for lithium equipment procurement will bring new growth opportunities for the large laser. But the current Internet car-making chaos, investors also need to pay more attention to risk.
Split Dilemma
Split listing will not have a large impact on the market value of the parent company.
Here's another look at the PCB business of Daqo Laser.
Global PCB products have seen greater growth in 2019, while Daqi Laser's equipment is not selling well. According to the listed company's disclosure of financial results, between 2017 and 2020 it realized revenue of 1.210 billion yuan, 1.682 billion yuan, 1.278 billion yuan, 2.184 billion yuan, it can be seen that in 2020, the business has a leapfrog growth, which can be predicated on the cliff decline in 2019, although the gross profit margin of the business has also been maintained at about 35%, but the later development depends on the needs of the industry.
With the landing of 5G infrastructure, data centers, new energy vehicles and other applications end of the heat, its demand for PCB boards will naturally rise, the major PCB manufacturers have also announced the expansion of production, Deep South Electric Road (002916.SZ), Hudian shares (002463.SZ) have plans to continue to expand production capacity, which also means that the future of Da Nu Laser may face fierce competition.
In August 2020, Daqo Laser announced that it intends to spin off and list its controlling subsidiary, Daqo CNC, whose main business is the research, development, production, and sales of specialized equipment for PCB full process. Daqo NC's PCB business is mainly PCB production process needs to use equipment, such as laser drilling machine, laser direct imaging equipment (LDI), etc., are low-power laser processing equipment.
In June before the spin-off announcement, Daqi Laser also announced its deputy general manager Yang Zhaohui submitted a written resignation report, the announcement shows that Yang Zhaohui due to work-related reasons to apply for resignation of the company's deputy general manager, resigned to continue to serve as a director of Daqi CNC, general manager of the position.
Split listing also means that the next big laser will continue to plough the field of laser equipment, and whether the large group of CNC can get better development, we have to look at it separately.
After the introduction of the "listed companies spin off their subsidiaries listed on the territory of a number of pilot provisions", China's A to split A listed companies abound, but so far only the split of SangYi Technology SangYi Electronics listed on the ground, and it so happens that the SangYi Electronics is also in the field of PCBs.
From the case of SangYi technology, since its release of the spin-off proposal to SangYi electronic listing, SangYi technology market value fell 21.09%, and SangYi electronic since the listing of the market value has also continued to fall, currently hovering around 12 billion. Whether the spin-off can realize the effect of wealth creation is afraid to put a question mark.