(report producer/analyst: Caitong Securities Zhang Yimin)
Jeputte: Deeply cultivate upstream core laser technology, laser leading supplier .1. Deeply cultivate core laser technology to solve the problem of "bottleneck" of key material components
Jeputte adheres to the industrial positioning of "laser light source +", deepens the industrial positioning of upstream core laser light source technology, and focuses on solving the problem of "bottleneck" of key laser materials and components.
through in-depth cooperation with benchmark customers in key industries such as 3C, new energy, integrated circuits, and semiconductors, we realize "import substitution" of laser technology and products. It is China's first commercial " pulse width adjustable high-power pulse fiber laser (MOPA)" manufacturer and a leading provider of optical precision detection and laser processing intelligent equipment.
Company's core products include lasers, laser/optical intelligent equipment, and fiber optic devices. Lasers include 4 product lines and laser/optical intelligent equipment includes 6 product lines.
laser: includes 4 business units: MOPA pulse laser, continuous fiber laser, , solid-state laser, , and ultrafast laser, and is used in 3C electronics, automobiles, traditional manufacturing, new energy and other fields of processing.
's MOPA laser has been vigorously developed since its inception in 2007. Compared with the Q-adjustment laser, which is also a pulse laser, , it has the advantages of adjustable first pulse, adjustable pulse width, completely leak-free, and switching internal and external frequency. It first achieved commercial mass production in China, breaking the monopoly of foreign manufacturers, and the sales volume in the world in 2021.
In 2021, the company has developed new MOPA laser products for customers that can be used for PERC grooves in the photovoltaic field, silicon wafer lobes and photovoltaic glass drills, as well as power battery ears and pole sheet cutting. The company has the ability to manufacture high-power continuous fiber lasers and delivered 40,000 watts of high-power products to customers in 2021. The overall technical level is advanced in China. At the same time, a laser welding workstation was customized according to customer needs, and the import replacement of lasers was completed in part of the welding process of power batteries.
laser/optical intelligent equipment: includes 6 major product lines including passive components , brittle materials, laser precision marking, laser welding and connection, module testing, non-standard, etc., and is widely used in processing and testing in 3C, medical, automobile, semiconductor, photovoltaic, VR/AR and other fields.
In the consumer electronics field, the company is the exclusive supplier of Apple spectral detection field. The newly developed XR glasses module testing machine can be used for XR lens imaging distortion detection, and is compatible with the detection of finished products of head-mounted glasses and single-eye module products. Focusing on the passive components industry, the company has developed a series of high-end equipment including resistance measurement packages, inductive winding/paint stripping equipment, and will achieve high growth in 2022.
fiber optic devices: includes fiber optic connector and component product line, and is used in the field of fiber optic communication , including fiber optic to the home, 4G/5G base station construction, data center and cloud computing.
.2. The equity structure is stable, and the professional background of senior executives lays a solid technical foundation for the company
The equity structure of the company is stable. As of 2022H1, the actual controller of the company is Chairman Huang Zhijia, who is a father-son relationship with the shareholder Huang Huai, Huang Huai is a joint actor of Huang Zhijia, and Tongju Consulting is the company's employee shareholding platform.
Company has an excellent consultant, management, R&D and sales team composed of many overseas doctoral students and doctoral students and masters from well-known domestic universities as the core. Chairman Huang Zhijia has rich experience in planning and management of high-tech enterprises. The general manager, deputy general manager, manufacturing director, R&D director, and deputy director of the laser business department have doctoral degrees in related majors from Nanyang Technological University, Changchun Optical Precision Machinery Research Institute, Huazhong University of Science and Technology , as well as deep experience in laser industry, laying a solid foundation for the company's product research and development and technological progress.
.3. Revenue trend is positive, and high R&D investment helps product upgrade
The company's revenue is stable and improving, and product upgrade + expansion of new application fields has achieved significant revenue growth.
In 2019, the company's operating income dropped slightly due to the reduction of demand for optical smart devices by downstream customer Apple .
In 2020, the company's products continued to be optimized. Relying on new large-scale orders, the company achieved revenue of 854 million yuan, an increase of 50% year-on-year.
In 2021, the company's laser products continue to iterate and upgrade, expand application scenarios, and add new photovoltaic and lithium battery industries technical solutions. The company achieved revenue of 1.2 billion, an increase of 40.50% year-on-year.
In the first half of 2022, due to the impact of the epidemic and the weakness of the consumer electronics industry, the company's revenue was 556 million yuan, a slight decrease of 4.52% year-on-year. In the future, as the company's revenue increases in XR, new energy, and passive component-related products, its revenue is expected to grow rapidly.
The company's profit level was affected by many aspects, and its profit doubled in 2021, and it was under short-term pressure in 22H1.
In 2020, due to the epidemic and foreign exchange fluctuations, the company's operating and foreign exchange expenses rose sharply. In addition, the company increased its R&D investment and implemented equity incentives, resulting in the failure of profit level to grow simultaneously with revenue.
In 2021, the company relied on product iterative upgrades to reduce production costs, the foreign exchange level was relatively stable, and the net profit attributable to shareholders increased by 106.04% year-on-year to 91 million yuan. The company's net profit attributable to shareholders of 2022H1 was RMB 37.14 million, a year-on-year decrease of 13.7%.
In recent years, due to the homogeneous competition in the laser cutting market, gross profit margin has dropped rapidly. The company has contracted continuous laser products for cutting and instead developed continuous laser products for welding. It is expected that subsequent profit levels will improve accordingly.
laser and laser/optical intelligent equipment dual-wheel drive, accounting for 51%/41% respectively. 's laser product revenue continues to grow. In 2021, relying on high-power pulse laser revenue growth, achieving revenue of 609 million yuan, a year-on-year increase of 47.87%. The laser/optical smart equipment business achieved revenue of 490 million yuan in 2021, a year-on-year increase of 29.29%. In 2021, the company's new industrial park was put into production, with a significant increase in output, a scale effect, and the gross profit margins of all products increased.
The company's expense ratio has been steadily declining in recent years, and R&D expenses have continued to rise. company keeps pace with customer pain points, develops laser light sources and laser/optical intelligent equipment for customers, and constantly explores new markets and new products. In 2021, the company's R&D expenses were 144 million yuan, an increase of 43% year-on-year, with a R&D expense rate of 12%. The R&D expenses in 22H1 were 71 million yuan, basically the same year-on-year. The company's R&D investment has reached the development needs. It is expected that the growth of R&D expenses will slow down in 2022, which will be conducive to the release of profits.
Pancake+ecologically catalyzed the XR wave, testing equipment is exclusively supplied to major customers, hoping to welcome rapid growth .1. Hardware iteration +ecologically catalyzed, XR ushered in the wave
meta-universe kicked off, and XR ushered in the wave as a hardware entrance.
2014 Facebook acquired Oculus for US$3 billion, opening the prelude to XR development; 2016 is the first year of the development of the XR industry, and major manufacturers have increased their investment in launching the first generation of XR products, which are mainly split machines at this time; after experiencing the trough period from 2016 to 2019, the XR ecosystem is more abundant, and hardware upgrades drive all-in-one solutions to become mainstream; in 2021 Roblox was launched and Oculus Quest2 became a hot product, the hardware + ecosystem is becoming increasingly mature, the metaverse is beginning, and XR ushers in a new wave.
global shipments exceed 10 million, and the industry is ushering in a period of rapid development. According to VR gyroscope data, 11.67 million XR headsets were shipped worldwide in 2021, a year-on-year increase of 64%, and is expected to grow by 31% year-on-year in 2022. As new products are released one after another, Apple's MR lead effect reshapes the industry space, and the growth rate of the XR headset market is expected to increase again.
The global market Meta is leading, and domestic Pico is expected to usher in leapfrog development. Meta occupies an absolute leading position in the XR headset field with Quest2. Its extremely rich ecosystem + excellent performance + extremely high cost performance makes it occupy 80% of the market share in 2021, followed by DPVR (Dapeng) and Pico. Among them, Pico was acquired by ByteDance in 2021. The domestic Pico sales in 22H1 were about 370,000 units, with a share of 61%. Backed by ByteDance's traffic advantages and rich ecological content, it is expected to usher in leapfrog development.
Ecologically rich is an important factor in XR growth.The growth of the XR market is inseparable from the increasingly rich application ecosystem. Games, live broadcasts, film and television, retail, social networking, etc. are the main application scenarios. Because of its rich content and interaction methods, games are still mainstream application scenarios, accounting for about 50%. At the same time, with the layout of content by Internet manufacturers, applications such as live broadcasts, film and televisions, retail, and social networking are gradually enriching. In addition to its excellent hardware,
Quest's continued rich applications are also the main factor leading the market. The number of applications in its official store has reached about 400, and there are about 800 applications being developed and tested in its App Lab waiting for official launch. Compared with Pico's current official applications, the number of applications currently is only half of that of Quest, and the content experience is relatively limited.
As various companies continue to invest in the ecosystem, the number of ecological applications will continue to increase. The increase in experienceable content will further stimulate consumers' willingness to purchase and drive the growth of XR headset shipments.
Hardware iteration is the basis for XR to move forward. The core of the XR headset is immersion. The display clarity, field of view, imaging effect, and motion follow-up determine the immersion experience. In addition to sensors that perform spatial positioning and wearing sensing, and chips that are responsible for performing various computing/memory operations, optical solutions are the top priority.
From the hardware iteration of Pico's all-in-one products, it can be seen that in addition to the conventional iteration and upgrading of conventional CPU/GPU/storage/battery performance, optical solutions are also continuing to innovate. The optical solutions of Pico's past generations mainly focus on the upgrade of screen performance. The improvement of resolution provides a clearer display effect. The improvement of refresh rate promotes the smoothness of dynamic pictures. The lens has always used the Fresnel lens solution without major changes. According to VR Gyro report, the next generation of Neo4 products will use the Pancake folding optical path solution, which is expected to be another major innovation in the XR headset.
.2. The importance of imaging detection links in future optical solutions such as Pancake highlights the
optical system is the key to the XR headset to achieve immersion. Pancake solution will become the mainstream due to its thin and thin characteristics.
VR optical solution has undergone the evolution of optical solutions from aspherical lenses to Fresnel lenses. Early VR boxes, iQIYI Dream and PSVR mostly use aspherical lenses. Because the light at the edges will become dark, it is replaced by Fresnel lenses with low cost, easy to mass production, clear imaging and large field of view. Current mainstream devices such as Quest2 and Pico Neo3 use this solution.
As consumers' demand for "light, thin and short" further increases, optical systems are moving towards the era of folding light solutions represented by pancake. Skyworth has released the PANCAKE1 VR headset in September 2022. In the future, new XR products of Pico, Meta, Apple, Huawei and other companies are expected to use this solution.
Pancake solution has a more complex optical path, with a volume of only 1/4 of Fresnel.
Pancake scheme compresses the total optical length (TTL). After the image source enters the semi-inverted and semi-transparent lens, the light is folded back several times between the lens, the phase retardation plate and the reflective polarizer, and finally emits from the reflective polarizer.
Skyworth released its new product Pancake1 in July, which is only 1/4 of the traditional Fresnel lenses, with a thickness of 50%, and a weight of almost 1/2 of that of current mainstream models.
imaging detection is an important part of the production of optical modules such as Pancake.
Take Pancake optical module as an example. Its production mainly includes 8 processes: optical design, lens processing, filming, assembly, lighting inspection, adjustment, detection, and packaging.
Pancake has a more complex optical path design than Fresnel solution, so the detection of the final imaging effect is crucial. As the display image is enlarged through an optical system to fill the user's field of view (FOV), the display defects will also be enlarged, and problems such as brightness and color uniformity, bad points, line defects, turbidity and image position become more obvious to users whose eyes are only a few centimeters away from the display screen. Therefore, it is necessary to detect the device to simulate the approximate size, position and aperture characteristics of the human eye cone system to test a series of display characteristics including brightness, chromaticity and its uniformity, image contrast, FOV.
.3. The company's XR detection equipment is exclusively for major customers and is expected to usher in rapid growth
The company has developed an XR glasses/module testing machine, which can be used for image distortion detection of finished glasses and single-eye mold composition, and can also be tested for imaging clarity, screen defects and screen brightness.
glasses finished product detection: uses a cone meter system that simulates the human eye to judge the relative angle and position relationship of the binocular module. Based on the independently developed vision algorithm, the constellation diagram of the XR product displayed by the cone meter is analyzed, and the difference in imaging distortion of the binocular is calculated is of great significance for the distortion correction of the XR product.
Single-eye module detection: can accurately measure the screen pixel position actually located in the optical center of the lens through the center instrument system in the device. The cone photometer can test the constellation diagram that is truly displayed around the optical center screen pixel, thereby analyzing the imaging distortion on the lens’s optical axis. At the same time, it can also move the module to simulate the rotation of the user's eyeball, and then analyze the imaging differences experienced by the human eye at different positions relative to the optical axis of the product.
Company's XR detection equipment has received orders from major customers and is expected to achieve rapid growth. is an optical equipment manufacturer in China that entered the Apple supply chain earlier, and continues to cooperate with customers in optical detection equipment.
In the first half of 2022, thanks to the good reputation of optical inspection among leading customers in the consumer electronics industry, the company's inspection equipment has received orders from major customers, becoming the exclusive supplier of related products and entering the full inspection stage. The value of a single device is about 2 million yuan. The two parties also started a preliminary discussion on the new technical indicators and parameters of the next generation XR detection equipment.
is expected to achieve rapid growth with the rapid growth of XR products and continuous investment in testing equipment by downstream major customers. Lasers such as
MOPA are leading the world, and new energy processing has opened the first year of domestic substitution .1. Power batteries have set off a wave of expansion, and domestic lasers are welcomed to replace the first year of
3.1.1. New energy vehicles are in a high prosperity, and power batteries have doubled and grown
Driven by the "dual carbon" policy + intelligent trend, new energy vehicles have ushered in the golden age.
Traditional car companies + new forces have increased their investments, and the sales growth rate is high. In 2021, China's new energy vehicle sales volume was 3.51 million, an increase of 165% year-on-year, and the penetration rate of is 216%.
In the first half of this year, although the growth rate of new energy vehicles slowed down in April due to the impact of the epidemic, as the epidemic eased, the sales of supply chains recovered simultaneously, the sales of new energy vehicles from January to July 2022 were 3.18 million, an increase of 117% year-on-year, and the penetration rate gradually climbed to nearly 30%.
According to IDC's forecast, China's new energy vehicle sales will reach 15.98 million in 2026, with a CAGR of 35.1% from 2021 to 2026, and a penetration rate of over 50%.
With the high sales of new energy vehicles, the number of power batteries installed as core components has increased rapidly. In 2021, China's power battery production reached 219.7GWh, a year-on-year increase of 170%, and the loading volume was 154.5GWh, a year-on-year increase of 143%. From January to July 2022, the short-term epidemic disturbances remained unchanged from the growth trend, with output reaching 253.7GWh, a year-on-year increase of 176%, and the loading volume reached 134.3GWh, a year-on-year increase of 111%.
Domestic power batteries are leading the world, with CATL and BYD together accounting for 47% of the market share. Among the top 10 power battery manufacturers in the world, Chinese manufacturers occupy 6 seats, with a total share of 56.4%, of which CATL accounts for 34.8%, while BYD is growing rapidly, with a share of 11.8%, almost doubled from last year.
3.1.2. Laser technology is widely used, and its advantages are used in the whole-channel processing of lithium batteries, highlighting the
laser technology is widely used in the processing process of power lithium batteries. The production process of power lithium batteries is divided into three stages: first, middle and last. The purpose of the first stage is to process the raw material into a pole piece, and the core process is coating; the purpose of the middle stage is to process the pole piece into an inactive battery cell; the subsequent stage is to detect and package and finally assemble into a module, and the core process is to transform and divide and divide. The quality of lithium batteries directly determines the performance of new energy vehicles, thus putting strict requirements on their manufacturing technology and equipment.
laser technology can be used for cutting, welding, cleaning, marking and other processes in the front, middle and rear sections of power batteries. laser technology is an advanced "light" manufacturing tool, showing the characteristics of high efficiency, precision, flexibility, reliability and stability, small welding material loss, high automation and safety. It is widely used in the cutting, welding, cleaning, marking and other processes of power lithium batteries. From the perspective of processing difficulty and the requirements for lasers, welding cutting and cleaning ≈ marking.
Laser Cutting: Before the emergence of laser technology, the traditional die-cutting knife equipment used in the lithium battery industry would inevitably wear, dust drops and burrs, which may in turn cause various dangerous problems such as battery overheating, short circuit, and even explosion.
laser cutting has the advantages of no tool wear, flexible cutting shape, edge quality control, higher accuracy and lower operating costs, which is conducive to reducing manufacturing costs, improving production efficiency, and significantly shortening the die-cutting cycle of new products. Laser cutting is usually used in the cutting of pole pieces, pole ears, diaphragm, etc., and the process is relatively standardized.
Laser Welding: The function of laser welding machine is to provide customers with a complete set of lithium battery production equipment to ensure the battery's range and safety during operation. Compared with traditional argon arc welding , resistance welding and other methods, laser welding has significant advantages such as small heat-affected zone, non-contact processing, and high processing efficiency. It has been widely used for welding of electrodes, battery cell shells, sealing nails, soft connections, explosion-proof valves, , battery modules, etc., with a high degree of customization and great differences in sub-application fields.
Laser cleaning: Adding laser cleaning during battery processing can greatly improve the battery manufacturing process level, mainly used in laser cleaning before electrode coating, laser cleaning before battery welding, and label cleaning during battery assembly.
Laser Marking: laser marking speed is fast, high production efficiency is high, and has good presentation effect. During the processing of lithium batteries, lasers can be used to print encoding, characters, production date, anti-counterfeiting code and other information on its surface, which will not cause internal stress and deformation to the workpiece, nor will it cause wear and pollution to the surface.
3.1.3. Expand production of lithium battery plants + technology upgrades, the laser processing market is growing rapidly
With the rapid growth of China's power battery production, laser lithium battery equipment ushers in a period of rapid development. The growth of lithium battery production capacity has brought about new equipment growth. In 2021, China's power lithium battery production reached 21.97GWh, with the corresponding equipment market size of 58.8 billion yuan, a year-on-year increase of 105%. Among them, the market size of laser lithium battery equipment reached 10.1 billion yuan, a year-on-year increase of 94%, accounting for about 18% of the overall lithium battery equipment.
lithium battery manufacturers are actively expanding production, and the long-term 2.5TWh production capacity planning is expected to bring nearly 70 billion yuan of laser equipment new market size.
According to GGII data, in 2021, China's lithium battery manufacturers have invested and expanded projects (including fundraising and investment projects), with a total investment amount (including planned investment) exceeding 621.8 billion yuan. The long-term planned new production capacity has exceeded 2.5TWh, among which the long-term production capacity of leading manufacturers ranges from 100GWh to 600GWh.
According to CATL’s semi-annual report, investment in single GWh equipment has dropped to 160 million yuan. According to GGII data, laser equipment accounts for 17.2% in 2021.
Domestic manufacturers have a long-term 2.5TWh new production capacity, which will bring about 400 billion yuan of new lithium battery equipment, of which the new market size of laser equipment will reach 68.8 billion yuan.
4680 Large cylindrical battery is an important development direction, and the all-pole ear process brings an increase in the demand for cutting and welding.
The traditional 8650 cylindrical products have small capacity and small output current, usually only two pole ears, connecting the positive and negative electrodes respectively; the 4680 cylindrical uses a full pole ear design, kneading the positive electrode aluminum foil and negative electrode copper foil exposed from both ends of the winding body into one end surface as the pole ear, and the battery cell heat dissipation, charging and discharging efficiency, energy density, and circulation performance have been improved.
Since the all-pole ear process requires cutting out the electrodes far more than traditional cylindrical batteries directly from the electrodes, and the electrodes need to be welded with the busbar, it brings more demands for laser cutting and welding equipment. In order to prevent the laser from burning through the battery, higher requirements are also put forward for the control of welding power and focus, and it is expected that it will also increase the value of a single laser lithium battery device/laser.
4680 large cylindrical battery is an important development direction, and the all-pole ear process brings an increase in the demand for cutting and welding.
The traditional 18650 cylindrical products have small capacity and small output current, usually only two pole ears, connecting the positive and negative electrodes respectively; the 4680 cylindrical uses a full pole ear design, kneading the positive electrode aluminum foil and negative electrode copper foil exposed from both ends of the winding body into one end surface as the pole ear, and the battery cell heat dissipation, charging and discharging efficiency, energy density, and circulation performance have been improved.
Since the all-pole ear process requires cutting out the electrodes far more than traditional cylindrical batteries directly from the electrodes, and the electrodes need to be welded with the busbar, it brings more demands for laser cutting and welding equipment. In order to prevent the laser from burning through the battery, higher requirements are also put forward for the control of welding power and focus, and it is expected that it will also increase the value of a single laser lithium battery device/laser.
lamination technology penetration and improvement, and the increase in the amount of extreme ear cutting welding + slitting has brought about an increase in market space for laser equipment.
power battery main packaging processes include three types: cylindrical, square, and soft bag. Among them, soft bags and square (parts) use lamination technology. In non-cylindrical batteries, the pole plate adopts lamination technology with higher space utilization and better performance than the winding technology. The application in square batteries is expected to continue to improve. In the long run, the proportion of soft bags increases + the increase in the application of square lamination is expected to increase the overall proportion of lamination technology in power batteries.
laminations need to be drawn out of each layer of pole, and more pole ears are required to be used than winding. According to the public speech of the president of Honeycomb Energy, the pole ears used in lamination technology at the same size are twice as much as winding; on the other hand, the lamination technology also requires more slicing of the pole ears. The increase in the usage of the electrode and the increase in the number of electrode slitting times brought about by the trend of increasing penetration rate of
lamination technology will bring greater market space to the application of laser lithium battery equipment in electrode cutting welding and electrode slitting.
3.1.4 The company's products cover the entire process of lithium battery processing, and enter the leading battery factory to start domestic substitution in the first year
head lithium battery companies introduce local laser manufacturers, and domestic substitution is accelerated.
In terms of power battery laser processing equipment, Haimuxing and Lianying Laser are important participants. Haimuxing's high-speed laser chipmaker has unique advantages in extreme ear cutting, and Lianying Laser is the leader in laser welding equipment.
In the core laser link, high-power lasers have long been the world of imported brands such as IPG, coherent, TRUMPF . Since 2021, it has been affected by the international fiber laser supply chain, which has begun to hinder the release of power battery production capacity to a certain extent.
With the rapid maturity of domestic laser products and technologies, the performance gap with international brands is narrowing. At the same time, the cost-effectiveness of domestic high-power lasers continues to improve, and the advantages of localized service are becoming increasingly prominent. Leading power battery companies such as CATL, BYD, and AVIC lithium battery are accelerating the scale introduction of domestic laser equipment, and welcoming development opportunities with domestic high-quality laser brands including Jeput.
Jept makes full arrangements in the field of power battery processing with its self-developed MOPA and continuous laser production capabilities.
Jipute's self-developed MOPA laser technology is world-leading, with a maximum power of continuous fiber laser reaching 40,000 W, and can cover various processes such as cutting, welding, cleaning, and marking before, middle and rear sections of power battery processing. Among them, MOPA lasers are suitable for cutting electrode sheets, aluminum-plastic film (soft package) and cleaning electrode sheets and caps. Higher power continuous lasers are used for welding of electrode ears, top covers, explosion-proof valves, soft connections, and various module structural components.
Company MOPA laser has good cutting effect and is the first to achieve burr-free cutting of the electrode sheet foil.
In the polar sheet cutting process, the factors that affect the battery quality and quality mainly include pollution in the laser cutting process, as well as the edge quality after cutting (burrs, heat-affected zones and flatness, etc.), and accuracy.
Company has done a lot of research on the laser processing quality and efficiency of electrode sheet coatings and foils, and has developed a MOPA pulse fiber laser for electrode sheet cutting. The pulse width and frequency are independently controllable, the energy conversion efficiency and beam output quality are high, and the processing efficiency can match the production line speed of 150 meters/min. The frequency conversion power response time is fast (＜10μs), and the processing effect is better. The processed positive electrode ceramics and negative electrodes graphite coating materials have a small thermal impact area, a flat surface without burrs, and the effect far exceeds customers' expectations.
foil processing surface is basically free of heat-affected zones, and the positive electrode foil cutting is the first to achieve the technological innovation of burr-free, greatly improving the processing quality of pole cutting, and thus helping to improve the product performance of power batteries.
In addition, the company's MOPA laser also has excellent performance in the pole sheet cleaning, seal nail cleaning, marking and traceability, and the processing technology improves customer product performance and safety, and has a high cost-effectiveness.
company continuous laser can cover the entire process of lithium battery welding processing.
pole ear welding link, company single-mode CW-2000W, multi-mode CW-6000W, output beam adjustable (AOB) continuous fiber laser series products can realize copper-aluminum pole ear welding of different thicknesses, stable welding joints/welds, no holes, explosion points and other defects.
adapter sheet welding link, company QCW, CW-2000W, 3000W single-mode fiber lasers adopt swing welding to effectively control the width of the weld to ensure the current passing. The welding connection strength can ensure the stability of the battery. During the welding process, the splash-free fall on the battery cell, avoiding battery short circuits and improving battery safety performance.
pole column welding link, company uses CW-2000W, 3000W, QCW fiber laser or fiber composite welding with semiconductor laser . The welding is beautiful, smooth, and good molding, and there are no defects such as blasting points, blasting holes, and pores.
welding valve welding link, Company CW-1000W single-mode, QCW fiber laser welding explosion-proof valve body can effectively control heat input, the weld seam is beautiful, smooth, good sealing, and high yield.
shell seal welding link, company output beam adjustable (AOB) or multi-mode CW-6000W fiber laser has good welding stability and high yield.
Pack welding process, Company CW-4000W and CW-6000W continuous fiber laser welding speed is fast and it is good at one-time molding.
The company's self-developed ring laser is leading in China and can replace the existing single laser welding process in the long run.
ring laser consists of double light spots with center + outer ring, bringing more flexibility and possibilities to laser welding.
ring laser is provided by an optical fiber with two independently controlled coaxial laser beams. The output light spot is composed of a central spot and an peripheral ring spot. Both spots can realize real-time independent adjustment of laser power and light output time, bringing greater flexibility and possibility to the laser welding process.
The front end of the outer ring spot preheats the workpiece, and at the same time, the central spot is used to form welding holes, and then the back end of the outer ring spot is used to stabilize the molten pool, thereby reducing defects such as splash and pores.
Traditional laser welding has always had problems such as welding pores, splashes, and high-level aluminum weld cracks. Generally, the welding speed is not high, the stability and airtightness are poor; the annular spot can not only solve the problems of welding pores, splashes, and high-level aluminum weld cracks in traditional laser welding, but also greatly improve the quality and efficiency of the welding process, and can replace traditional single fiber lasers in most welding scenarios.
currently has developed its own ring spot adjustable laser, with a leading technical level in China.
Company's ring laser power is greater than 3000W, and can achieve different mode outputs such as Gaussian spot, ring spot, and hybrid spot. It is leading in China in the technical level.
is used for welding battery-cell aluminum alloys, which can achieve almost no pores and no splashes. At the same time, most companies currently have mass-produced welding wire speeds of 200mm/s, while some optical fiber welding low-speed wires are only 70mm/s. Using annular light spots can increase the welding efficiency by 5-10 times and break the original bottlenecks. Most companies have begun to use composite welding and annular light spots to replace the previous low-speed single fiber welding.
In soft connections, busbars and other copper, aluminum different metal welding, modules, PACK high-level aluminum alloys, it can also achieve less pores, less splash and no cracks.
lasers and equipment have been successfully introduced to B customer, CATL and other leading battery manufacturers, opening the first year of domestic substitution for lithium laser processing.
In 2020, the company has successfully entered the supply chain of power battery leading enterprises through supporting well-known laser equipment manufacturers such as Dazu Laser , Lianying Laser, Haimuxing, and Everbright Laser.
In the context of terminal power battery customers vigorously promoting the localization of laser equipment, the company's laser equipment has successfully introduced welding applications in B customer and occupied an important share. The company has become one of the few companies in China with the national production capacity from lasers to equipment, realizing the replacement of laser products by leading overseas manufacturers.
In March 2022, the company announced that it was designated by CATL to supply MOPA lasers for the pole cutting process of power battery cell manufacturing. After actual verification, its processing effect is better than imported lasers.
company has successfully introduced leading power battery manufacturers, opening the first year of domestic replacement of lasers in power battery processing scenarios. Under the demonstration effect of leading large customers, the company's lasers and equipment are expected to penetrate into more manufacturers and open up new growth space; at the same time, under the current trend of ring lasers replacing single fiber lasers, the company's products are also expected to occupy a higher market share in the client.
.2. Photovoltaic cells are facing a technical turning point, and layout the next generation of processes to open up long-term space
3.2.1. The demand for photovoltaic cost reduction continues. After PERC, TOPCon and HJT took over
"policy-driven" and turned to "market-driven", and the photovoltaic installation is in a high state of prosperity.
In 2020, China clearly proposed the "carbon peak" in 2030 and the "carbon neutrality" plan in 2060. The National Energy Administration stated that China's installed capacity of renewable energy power generation will account for more than 50% in 2025. According to the National Development and Reform Commission's forecast, the proportion of non-fossil energy is expected to reach 78% in 2050.
With the support of various policies, the photovoltaic industry has gradually achieved economies of scale, technology continues to improve, the price of photovoltaic modules has been on a downward trend for a long time, the efficiency of solar cell power generation continues to improve, and the era of photovoltaic power generation parity grid access has arrived, and it has changed from "policy-driven" to "market-driven".
According to CPIA's forecast, China's new photovoltaic installed capacity is expected to reach 60-75GW in 2022, a year-on-year increase of 9-37%, and a compound growth rate of 13.2%-19% in 25 years; according to BNEF's forecast, the global new photovoltaic installed capacity in 222 is expected to reach 228GW, a year-on-year increase of 25%, and a compound growth rate of 8.3% in 25 years. The new photovoltaic installed capacity is high in the short term, and the medium-term new capacity remains high.
photovoltaic cells are the core components, PERC cells have entered the bottleneck, and TOPCon and HJT are moving forward hand in hand.
Currently, the mainstream technology of photovoltaic cells is mainly PERC batteries, but its photoelectric efficiency and cost reduction path have all entered a bottleneck. TOPCon can use PERC equipment, which is the main investment direction of some manufacturers.
In the long run, the HJT conversion rate is higher, and the stacked batteries formed by superposition of perovskite and IBC technologies is expected to significantly improve the photoelectric efficiency. Currently, the leading photovoltaic cell factories have layouts for all kinds of technologies, and the proportion of TOPCon and HJT is expected to continue to increase.
3.2.2. Laser technology improves photoelectric conversion efficiency, and the company's multi-route layout opens up a new growth space
Laser technology can be used for processing of various photovoltaic cells. Cutting, doping, grooved and other applications are involved in multiple technology routes. Among them, SE doping and grooved are the core standard PERC processes, which can improve the photoelectric conversion efficiency.
SE doping: uses the silicon phosphorus glass generated by laser diffusion as a doping source to perform high concentration phosphorus doping in the contact area of the gate line of the crystalline silicon solar cell electrode and the silicon wafer, thereby reducing the contact resistance between the electrode and the silicon wafer; low concentration shallow doping is performed in areas outside the electrode to reduce the surface recombination rate, thereby effectively improving the battery's opening voltage, current and filling factor, and improving the photoelectric conversion efficiency.
Slotting: uses laser to drill or groove the back of the silicon wafer, and some Al2O3 and SiN film layer are penetrated through the exposed silicon matrix, and the back electric field is in contact with the silicon matrix through the holes or grooves on the film.
Early laboratories mainly adopted wet etching technology, which is difficult and costly in industrialization. Through specially made laser and optical path control, processing can be completed and the best battery performance can be obtained with long-term accumulated process experience.
Relying on its own laser capabilities to keep pace with customer needs, the company has synchronized multi-channel technology layout to open up growth space. has developed MOPA pulsed lasers for PERC grooves, silicon wafer cutting, cell lobes and photovoltaic glass drilling for customers in the photovoltaic field. The lasers used in the TOPCon doping process are also under development.
In terms of perovskite batteries, Jeput delivered the first set of die-cutting equipment in August 2021, and developed a new generation of die-cutting and edge cleaning equipment, including P1-P3 marking and P4 edge cleaning process flow, further optimizing the production process and improving production efficiency. With the continuous growth of new photovoltaic installed capacity and the penetration and improvement of laser processing technology, the company is expected to open up new growth space in this field.
In the expansion cycle of passive components, the company's new equipment has opened up a larger market space .1. Passive components demand differentiation, overseas manufacturers dominate high-end
Passive components are the most basic components in the electronics industry. In 2019, the global RCL market size reached US$27.7 billion.
passive components are also called passive devices, mainly including four categories: capacitor (C), resistor (R), inductance (L), and passive RF devices. According to ECIA data, the global RCL component market size in 2019 reached US$27.7 billion, shipments of 5.4 trillion units, and unit price of US$0.005, showing the characteristics of low unit price, large usage and general-purpose high. Among RCL components, the capacitor market size reaches US$20.3 billion, accounting for most of the market, followed by inductors (US$4.7 billion) and resistors (US$2.8 billion). The overall market of passive components in
is affected by the price increase cycle in 2017-18. There are more inventory reserves and high inventory levels. It has entered the stage of destocking in 2019 until it recovers to reasonable inventory. In the second half of 2020, as the impact of the epidemic weakens, demand for 5G and automotive electronics surged, and the industry entered a state of supply and demand.
In the past year, due to macro factors such as the international situation, repeated epidemics, inflation and other macro factors, consumer electronics demand has weakened, and passive components have shown a differentiated trend in the consumption, industry and automobile fields.
From the perspective of downstream applications, network communication and automotive use are the main downstream applications, among which network communication and automobiles account for 36% and 15% respectively. In the future, the popularity of 5G will drive the growth of demand in mobile phones and base stations, and the increase in the penetration rate of electric vehicles will also drive the growth of demand for passive components in the automotive field.
From a regional perspective, China is the world's largest passive component market, with a scale of about US$12 billion, accounting for 43%, Europe/Middle East/Africa and the United States account for 18% and 11% respectively, while Japan, as a passive component power market, accounts for only 8%.
Global passive component market Japan, South Korea, and Taiwan have a leading share and high-end products. The low-end market releases give mainland manufacturers room to catch up.
capacitor: Aluminum electrolytic capacitors account for about 30%, while ceramic capacitors (mainly MLCC) account for about 50%. In terms of aluminum electrolytic capacitors, the three leading Japanese manufacturers have a total market share of about 40%, and their products are located in high-end fields such as automobiles, industrial control, and new energy. Domestic Jianghai and Aihua are driven by the new energy prosperity and revenue growth. MLCC Japan, South Korea, and Taiwan basically account for more than 80% of the market share, and production capacity is shifting to high-end, smaller-scale products. Mainland manufacturers are actively expanding production this year to accelerate their catch-up.
inductor: mainly chip inductor. The three leading Japanese manufacturers account for about 40% of the market share, followed by Qilixin, Taiwan, and Shunluo Electronics, China.Among them, Murata and Shunro are one of the few manufacturers with mass production of 01005 small inductors.
resistor: chip resistor is the main one. China Taiwan leads, with the top five Chinese Taiwan manufacturers accounting for more than 60% of the market share, while the mainland is represented by Fenghua Hi-Tech.
.2. The overall supply is still tight, and the expansion of production by leading manufacturers continues to expand
passive components supply continues, and the margin may be alleviated but the delivery time is still at a high level.
In 2021, global macro impact affects supply, downstream PCs, new energy and other multiple points have entered a prosperous cycle, and passive components have started a supply shortage cycle. From January 2021 to May 2022, the volume-sensitive resistance periods have increased by 30%-100% respectively.
Consumer demand has continued to decline in the past year, and the supply and demand pattern of some application fields (mainly consumer) and some products (such as MLCC) has reversed. The overall supply shortage trend of passive components may ease at the margin, but the overall delivery time is still at a high level.
major manufacturers are actively expanding production, which is expected to drive upward demand for equipment. Major overseas manufacturers are still active in expanding production in the high-end market. Most of the leading passive component manufacturers announced their MLCC-based expansion plans in 2021 to alleviate the supply gap in the high-end market; domestic manufacturers are more active in expanding production to impact the high-end market and make up for the mid- and low-end market gap released by overseas manufacturers.
Currently, MLCC is in the bottoming stage due to consumer demand, and is expected to usher in a marginal improvement in demand in the future. The capacity expansion plan of major manufacturers is expected to be normal, and it will also bring about an upward trend in the demand for passive component production equipment.
.3. The company's new equipment products cover more processes, and the industry's production expansion cycle is facing another share growth
The company is a leading passive component manufacturer and equipment supplier, and category expansion + downstream production expansion is expected to usher in greater growth.
Company has laid out passive component equipment based on its own laser and optical equipment capabilities. It has developed resistance marking, resistance adjustment and passive component detection equipment in the early stage, and has served passive component manufacturers such as Fenghua Hi-Tech, Shunluo Electronics, Guoju Co., Ltd., Housheng Electronics, Qiankun Technology, and Huaxin Technology, with a high global market share.
In 2021, the company further expands its category. In the field of resistance equipment, it invests in semiconductor companies for cooperation in testing and charter aircraft research and development. It has made resistance test and charter aircraft prototypes, which are expected to break the monopoly of Japanese manufacturers to achieve domestic substitution; in the field of inductive equipment, the company has developed a series of high-end equipment such as inductive winding and paint stripping equipment, which can be used for core processes such as integrated molding inductive winding and paint stripping.
With the expansion of downstream passive component manufacturers' production capacity and the increase in self-developed equipment categories, the company's passive component equipment business is expected to usher in a significant growth.
Profit forecast and valuation .1. Business splitting and profit forecast
laser: company MOPA laser is the world leader, and newly introduced lithium batteries and photovoltaic processing is expected to have a significant increase in revenue in the next two years, and the gross profit margin of product iteration and upgrading is simultaneously increased. The continuous fiber laser cutting business is gradually shrinking, and 22Q4 is expected to achieve a break-even, and welding applications in new energy and other fields will bring double revenue and profit growth next year.
solid-state lasers develop rapidly, and their gross profit margin remains high. It is estimated that the revenue in 22/23/24 will be 696/881/1.196 billion yuan, an increase of 14.2%/26.6%/35.8% year-on-year, and the gross profit margin is 27.1%/34.0%/38.7%.
laser/optical intelligent equipment: company laser/optical intelligent equipment blooms in multiple points, XR detection provides full inspection link for major customers, new energy processing extends from lasers to equipment, and passive components and equipment covers more core processes.
new field equipment profitability is better, and the gross profit margin is expected to remain at a high level. The revenue of this business is expected to be RMB 7/12/22.28 billion in 22/23/24, an increase of 42.6%/71.6%/90.0% year-on-year, and gross profit margin is 40.0%/40.0%/40.0%.
fiber optic devices: is mainly used in the optical communications industry. In 2021, benefiting from the rapid growth of overseas data center demand. We assume that the growth rate of this business gradually slows down and the gross profit margin remains at the previous average level.
We expect the revenue of this business to be RMB 51/59/65 million in 22/23/24, an increase of 20.0%/15.0%/10.0% year-on-year, and the gross profit margin is 28.0%/28.0%/28.0%/28.0%.
Other businesses: is mainly for technology and extended warranty services. We assume that the revenue and gross profit margin of this business are stable. It is estimated that the revenue of this business will be 57/0.57/0.57 million in 22/23/24, and the gross profit margin is 50.0%/50.0%/50.0%/50.0%
In summary, we expect the company's overall revenue to be 1.504/2.197/3.598 billion yuan in 22/23/24, an increase of 25.4%/46.1%/63.8% year-on-year, with a gross profit margin of 34.0%/37.5%/39.5%, and a net profit attributable to shareholders of 11/27/506 million yuan.
.2. Valuation Analysis
Select laser/equipment manufacturers such as Dazu Laser, Ruike Laser, Haimuxing, Lianying Laser, etc. with similar products or downstream application fields as comparable companies, with an average PE multiple of 32.65/19/13.88 in 22/23/24.
is expected to be 11/27/506 million yuan attributable to shareholders of
, which is 50.9/20.8/11.09 times.
Risk warning XR terminal demand is lower than expected: company XR testing equipment is mainly used for the production and testing of XR terminals of large customers. Inflation and the impact of the epidemic may have adverse effects on the shipment of XR terminals, resulting in large customers reducing the procurement of the company's XR testing equipment, and the company's performance will be affected.
New energy downstream customers development is not as expected: company has entered the field of new energy processing. The current rapid iteration of downstream lithium battery and photovoltaic technologies has also given rise to the demand for technological upgrades for various types of lasers/equipment. If the company cannot follow downstream customers to achieve synchronous iteration, it may affect the company's share of leading customers and the progress of new customers development, resulting in the company's revenue being lower than expected.
Passive component manufacturers delay production expansion and cancellation risks: The overall prosperity of passive components has declined. If the overseas MLCC leader postponed or canceled the expansion plan on a large scale due to sluggish demand, it will have an adverse impact on the company's passive component equipment revenue.
industry competition intensifies risk: the current competition in the continuous laser cutting scenario is fierce, and laser/equipment manufacturers are also increasing their investment in new energy processing scenarios. If the subsequent supply is oversupply, it will intensify industry competition and the company's profitability will decline.
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