Today, let's take down the optical faucet OFILM.
1. Key points of the 2023 annual report
(1) Revenue growth, net profit successfully turned around. OFILM will achieve operating income of 16.863 billion yuan in 2023, a year-on-year increase of 13.73%; The net profit attributable to shareholders of the listed company was 76.905 million yuan, successfully turning losses into profits.
(2) Business structure optimization. The company continued to carry out technological innovation and product upgrades in the fields of optical camera modules, optical lenses, fingerprint recognition modules, 3D ToF, etc., which promoted the rapid growth of high value-added products and improved the gross profit margin of products.
(3) The company actively grasps the good opportunities for the development of the industry, makes full use of its own years of technology accumulation, adheres to independent innovation to guide the industrialization and upgrading of technology, continues to invest in research and development, steadily improves product quality, and constantly consolidates its leading position in the global optical and optoelectronic industry.
(4) In 2023, non-recurring gains and losses will have a greater impact on the net profit attributable to shareholders of listed companies, mainly from government subsidies and disposal of non-current assets, which will improve the company's net profit performance to a certain extent.
2. Company profile
The company's formal operation began in 2002 and was listed on the Shenzhen Stock Exchange in 2010, and its main business includes the design, R&D, production and sales of optical camera modules, optical lenses, fingerprint recognition modules, 3D ToF, intelligent driving, intelligent cockpit, body electronics and intelligent door locks. The company's main products are widely used in smart phones, smart homes, smart VR/AR devices and smart cars, including optical image modules, optical lenses, microelectronics and smart car related products. OFILM has developed rapidly in the field of optical imaging, accumulated high-quality customer resources, and ranked among the forefront of the industry. In terms of camera module shipments, it has been among the top in the world for many years since 2016.
3. Sort out the industrial chain
The company belongs to the optical and optoelectronic industry, and the upstream of the industrial chain mainly includes optical material suppliers, electronic component manufacturers, etc., and the downstream involves smart phones, smart cars, security monitoring, AR/VR equipment and other application fields. The core competitiveness of each link of the industrial chain is mainly as follows:
· Upstream: The core competitiveness lies in the supply capacity and cost control of high-quality raw materials.
· Midstream: The core competitiveness lies in precision manufacturing, technological innovation and product development capabilities.
· Downstream: The core competitiveness lies in market channel development, customer service and brand influence.
4. Business change combing
From the perspective of OFILM's development history, the company's main business has undergone several changes, first of all, the infrared cut filter became the world's first, and in 2011 withdrew from this field; In 2018, affected by technological iteration, the company's production line was basically eliminated, resulting in the company's asset impairment loss of 1.84 billion yuan in the 2018 statement, and then gradually divested the touch screen business;
5. Performance (2023 annual report)
· Non-operating factors led to a turnaround. In terms of products, "smartphone products" supported sales and profitability.
· The consolidated gross profit margin increased by 10 percentage points to 10%, and the improvement of product competitiveness led to the improvement of operating activities.
· The ability of shareholders' equity to leverage assets is stable, and the return on total assets has led to a turnaround in ROE.
· In terms of the long-term cycle, business activities have a certain hematopoietic capacity, and investment activities are characterized by net cash inflows without capital investment.
· In 2023, the company will have a funding gap in operating activities due to a large amount of advances due to receivables and payables.
· The company mainly financed through debt, and the financial asset-liability ratio decreased to 38%, reducing the debt repayment pressure.
· The asset scale has increased to 19.9 billion, focusing on business structurally, which has strong strategic development significance. "Blood transfusions" drive capital growth.
6. Capital market performance
· The fundamentals are stable and improving, with a market value of 26.4 billion, ranking first in the optical component industry, and a price-earnings ratio of 59 times, which belongs to the industry average.
· In the past year, the company's closing price has increased by 68%, which is significantly higher than the industry average of 1.5%.
· The institutional shareholding ratio is 26%, which is the industry average, and the shareholding ratio of northbound funds is 2%, which is higher than the industry average.
· In the past six months, the number of brokerage research reports obtained by the company is 0, and the attention of brokerages is low.
The following is a detailed data analysis for your reference.
1. Fundamental changes
OFILM's 2023 annual report ranked 4010 in A-shares, an increase of 2,147 from the previous quarter and 2,608 from the same period last year. OFILM's 2023 annual report ranked 15th in the industry, up 6 places from the previous quarter and 9 places from the same period last year.
Note: This ranking is based on a comprehensive analysis of 15 indicators such as operating income, core profit growth, ROE, dividends, and cash flow. The 15 indicators involve fundamental and capital analysis of the company's scale, growth, profitability, operating contribution, cash flow health, dividends, goodwill risk, and northbound capital. Reflects the trend of the fundamentals of listed companies in each financial reporting period.
Second, value performance
OFILM's market value on May 23, 2024 is 26.388 billion yuan, ranking first among 23 companies, and it is a large enterprise with market capitalization. The P/E ratio is 58.53, ranking 7th out of 23 companies, which is an average P/E ratio.
From January 3, 2023 to May 23, 2024, the company's closing price rose and fell by 68.40%, the CSI 300 Index rose and fell by -6.33%, and the optical components rose and fell by 1.50%, and the company's rise and fall was significantly higher than the industry level.
3. Capital market signals
As of May 23, 2024, OFILM has no funding signal.
OFILM's institutional shareholding ratio was 25.97% on December 31, 2023, which was at the industry average. As of May 23, 2024, 12 companies in the industry have northbound capital holdings, and OFILM's northbound capital shareholding ratio is 2.01%, which is higher than the average of companies in the industry that have received northbound capital investment.
As of May 23, 2024, 11 companies in the industry have obtained brokerage research reports in the 180 days, and OFILM has not obtained brokerage research reports.
On May 23, 2024, 10 companies in the industry obtained the performance forecast of the brokerage, and OFILM did not obtain the compound growth rate forecast of net profit attributable to the parent company in the next three years. Seven companies have obtained stock price forecasts from brokerages, and OFILM has not obtained stock price forecasts.
Fourth, core financial characteristics
In the 2023 annual report, OFILM's net profit was 74 million yuan, and compared with the 2022 annual report, the net profit achieved a turnaround. The increase in net profit was mainly due to the increase in other profits from non-operating activities or the decrease in losses and the increase in gross profit.
From the perspective of product classification, OFILM's main business composition, "smart phone products" is the largest revenue component, accounting for 72.66%, contributing most of the revenue.
In OFILM's profit composition, "smartphone products" is the largest profit component, accounting for 61.44%, contributing most of the gross profit.
OFILM's products are profitable, but they cannot cover the expenses and ultimately lead to losses in operating activities.
The increase in core profit margin in OFILM's 2023 annual report compared with the 2022 annual report is mainly due to the increase in gross profit margin. OFILM's 2023 annual report has a gross profit margin of 10.02%, an increase of 10.12 percentage points compared with the 2022 annual report, achieving a turnaround. OFILM's gross profit margin is significantly lower than that of Crystal Optoelectronics by 17.79 percentage points.
In the 2023 annual report, OFILM's ROE was 2.32%, an increase of 91.13 percentage points compared with the 2022 annual report, and the shareholder return turned around. The return on total assets was 0.39%, an increase of 26.96 percentage points from the 2022 annual report, and the return on total assets turned around. The equity multiplier was 4.77 times, an increase of 0.18 times compared with the 2022 annual report, and the ability of shareholders' equity to leverage assets was basically stable.
In the 2023 annual report, OFILM's return on operating assets is -1.94%, which is 9.04 percentage points lower than that of Crystal Optoelectronics (7.10%). Core margin was -1.75%. Compared with the 2022 annual report, the core profit margin increased by 16.00 percentage points, but it failed to achieve a turnaround in operating activities. The operating asset turnover ratio was 1.11 times, an increase of 0.20 times or 22.14% compared with the 2022 annual report, and the operating asset turnover efficiency improved.
From the perspective of the cash flow structure of OFILM's 2021 annual report to the current period, the opening cash was 2.242 billion yuan, the net inflow of operating activities was 3.345 billion yuan, the net inflow of investment activities was 1.274 billion yuan, the net outflow of financing activities was 6.278 billion yuan, the net outflow of other cash was 24 million yuan, the cumulative net outflow of 1.683 billion yuan in three years, and the cash at the end of the period was 559 million yuan.
From the perspective of the cash flow structure of OFILM's 2023 annual report, the opening cash was 2.191 billion yuan, the net outflow of operating activities was 495 million yuan, the net outflow of investment activities was 63 million yuan, the net outflow of financing activities was 1.079 billion yuan, the cumulative net outflow was 1.632 billion yuan, and the ending cash was 559 million yuan.
The outflow of strategic investment funds was 303 million yuan, a decrease of 422 million yuan compared with the 2022 annual report, with a growth rate of -58.20%, and the capital investment of strategic investment decreased rapidly.
OFILM reported in 2021 that the outflow of strategic investment funds in the current period was 1.908 billion yuan, and the net cash inflow from operating activities was 3.345 billion yuan, and the hematopoietic capacity of operating activities can cover the outflow of funds from strategic investment.
OFILM's 2023 annual report reported a net cash outflow of 495 million yuan from operating activities, a decrease of 2.337 billion yuan compared with the 2023 annual report, and a cumulative net inflow of 3.345 billion yuan from operating activities in 2021.
OFILM's 2023 annual report reported an adjusted profit of 1.098 billion yuan from operating activities, with a cash outflow of 369 million yuan due to early stocking, a cash outflow of 1.409 billion yuan due to changes in receivables and payables, and a cash inflow of 185 million yuan due to other factors, and a net cash outflow of 495 million yuan from operating activities.
There is a gap in OFILM's operating activities, mainly due to the large amount of advances due to changes in receivables and payables.
In OFILM's 2023 annual report, the capital outflow of investment activities accounted for the largest proportion of capacity construction, accounting for 73.51%. OFILM's outflow of investment activities in the current period reported in 2021 was concentrated in capacity construction, accounting for 83.15%.
In the 2023 annual report, OFILM's operating activities and investment activities have a funding gap of 558 million yuan, which is compared with the 2022 annual report. In 2021, the cumulative net inflow of operating activities and investment activities in the current period was 4.619 billion yuan, with no funding gap.
OFILM's 2023 annual report has a cash inflow of 8.454 billion yuan from financing activities, an increase of 2.200 billion yuan or 35.17% compared with the 2022 annual report, and the cash inflow from financing activities has increased rapidly. The vast majority of OFILM's 2023 annual report comes from debt inflow (92.98%).
OFILM's 2023 annual report has a net debt inflow of -780 million yuan, and the company is mainly repaying historical debts at this stage.
On December 31, 2023, OFILM's financial debt ratio was 38.00%, a decrease of 6.31 percentage points from December 31, 2022, and the level of financial debt decreased. The financial debt ratio of Crystal Optoelectronics is 1.45%, and the financial debt level of OFILM is higher than that of Crystal Optoelectronics.
On December 31, 2023, the total assets of OFILM were 19.938 billion yuan, compared with September 30, 2023, the assets of OFILM increased by 2.417 billion yuan, the asset scale increased, and the asset growth rate was 13.80%. From the perspective of the asset structure of the consolidated statements, the asset allocation focuses on the business and has strong strategic development significance.
Judging from OFILM's debt and owner's equity structure as of December 31, 2023, the company's capital introduction strategy is driven by the balanced use of shareholders' capital, operating liabilities and financial liabilities. Among them, operating liabilities are the main driving force for asset growth.
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