Seeking a stock analysis paper

Comments on Fu Jeer Science and Technology Annual Report: 10 slightly exceeded expectations, and the contribution of LED business in the semi-annual report slightly exceeded expectations, mainly because the gross profit margin was higher than expected. In 20 10, the operating income was 654.38+86 million yuan, up 60.5% year-on-year, and the net profit was 6 10/00000 yuan, up 481%year-on-year; The annual EPS EPS 0.32 yuan, slightly exceeding the previous expectation (0.3 yuan). It is planned to transfer from 2 yuan to 10 5 school. Under the unfavorable factors such as the increase in the proportion of new products with low gross profit margin and the appreciation of RMB, the company's comprehensive gross profit margin reached 56.6%, which was higher than our previous expectation (54%), which confirmed the company's technical advantages (efficiency improvement) and cost control ability in the field of laser crystals.

The crystal business with high gross profit margin provided a stable cash flow, which laid the foundation for the company to invest in new business. The net cash flow per share generated by the company's operating activities was 0.42 yuan (higher than EPS), with a year-on-year increase of 665,438+0.63%. The turnover rate of income accounts and inventory increased significantly compared with the previous year, showing the company's strong position in the upstream and downstream of the industrial chain. At the end of the year, the monetary fund per share was 1. 16 yuan, and the abundant free cash flow provided a "cannonball" for the company to invest in new business.

"Actively expanding outward and seeking opportunities for industry participation" is included in the annual business plan for the first time, and new profit growth points will significantly enhance the company's value. The company has long focused on endogenous growth. In 20 10, the company gradually implemented the development model of "crystal business provides cash flow and new business provides new profit growth point" by producing optical components and participating in Wanbang Optoelectronics. Taking Wanbang Optoelectronics as an example, as the holding company's scientific research achievement industrialization project, the company invested 39 million yuan in 20 10, which is expected to contribute 35.8 million investment income in10, significantly enhancing the company's value. As the only listing platform of Fujian Institute of Physics, Chinese Academy of Sciences, we believe that the "old+new" business model is expected to last for a long time, and the potential industrialization projects of scientific research achievements in the future will help to enhance the investment value of the company.

In the first quarter, the contribution profit of LED business is expected to be significantly reflected in the semi-annual report. Due to the Spring Festival holiday and the phased adjustment of the product line, the output of Wanbang Optoelectronics, a shareholding company, is still low in the first quarter. It is estimated that the production and sales volume in the first quarter will be 25 million. With the mass production of fluorescent lamp production line at the end of March, the LED business will start to contribute profits in the second quarter, which will be reflected in the semi-annual report. We expect Wanbang Optoelectronics to achieve production and sales of 654.38+0.5 billion yuan in the first half of the year, contributing 0.05 yuan to Fu Jeer EPS.

Maintain the overweight rating with a target price of 23.2 yuan. Without considering the extension growth, we expect the EPS of the company113 to be 0.58/0.8 1.02 yuan, with a compound growth rate of 33%. As an industry leader with obvious cost advantages in emerging industries, it can reasonably enjoy 40 times the valuation of 1 1 year and give a target price of 23.2 yuan.