Recently, small-cap stocks on the Science and Technology Innovation Board have generally seen a rebound, and the best among them is Tengjing Technology. In the 10 trading days from November 10 to November 23, the company's share price rose from 21.4 yuan per share to 42.02 yuan p

Reporter | Cao Li CL

Editor | Chen Feixia

Recently, Science and Technology Innovation Board small-cap stocks have generally experienced a rebound, and the best among them is Tengjing Technology (688195.SH). In the 10 trading days from November 10 to November 23, the company's share price rose from 21.4 yuan per share to 42.02 yuan per share, doubling. The stock price fell slightly in the following three trading days.

The reason why Tengjing Technology is sought after is the company's layout in automotive lidar . The company disclosed on the investment exchange and interactive platform on the evening of November 1 that "the company has passed the IATF16949:2016 automotive industry quality management system certification and obtained the certification certificate. The company will continue to connect with major customers and car manufacturers to carry out technical exchanges and sample delivery of automotive optical components." This has also become the starting point for the company's current round of market speculation.

car lidar has always been a hot spot in the market. However, the previous IPO of domestic lidar manufacturer Hesai Technology has failed, which has caused the market to doubt the prospects of lidar's capital market. Will the doubled stock price of Tengjing Technology re-start the market's pursuit of lidar?

hidden champion

, only from the perspective of performance, Tengjing Technology has no highlights. In the first three quarters of 2021, the company's revenue was 219 million yuan, an increase of 8.62% year-on-year; net profit was 38.816 million yuan, a decrease of 30.57% year-on-year. In terms of

business, Tengjing Technology mainly consists of two parts: precision optical components and fiber optic devices. Precision optical components include planar optical components, spherical optical components, molded glass aspherical lenses, etc., which can be mainly used in optical communication and fiber laser , as well as quantum computing , biomedical and consumer electronics fields; fiber optic devices include coated fiber optic devices, collimators, acousto-optical devices, etc.

In fact, Tengjing Technology has a leading position in multiple segmented products and fields. Tengjing Technology is the only company in China that can mass-produce molded glass aspherical lenses, and is also the only company in China that masters the fiber coating technology of high-power lasers with a capacity of more than 500W. In the quantum computing prototypes independently developed by China, the dichroic mirrors, half-wave plates, filters, , polarization beam splitters, depolarization beam splitters, YVO4 and other precision optical components used by the quantum entangled system all use customized products provided by Tengjing Technology.

The world's top five optical communication manufacturers and the world's top five optical fiber laser manufacturers are most of them customers of Tengjing Technology, which to some extent confirms customers' recognition of the company's technology and quality, including Lumentum, Finisar, , Huawei , Zhongji Xuchuang, etc. in the optical communication field; Ruike Laser, nLIGHT and other companies in the fiber laser field. In the fields of fiber lasers and optical communications, Tengjing Technology is undoubtedly a key component manufacturer that cannot be avoided.

It is worth mentioning that the overall education background of Tengjing Technology management team is relatively high. Three of the 5 people in the senior management team graduated from Tsinghua University's physics major, which is extremely rare even on the Science and Technology Innovation Board.

At the same time, members of the executive team of Tengjing Technology also have experience working in leading optical companies. For example, Yu Hongrui, chairman of the company, was once the senior vice president of Fuzhou Gaoyi Optics Co., Ltd. (hereinafter referred to as "Gaoyi Optics"). Gaoyi Optics was once a leading optical component company in China, and was later acquired by II-VI, the world's largest laser component manufacturer.

benefited from Luminar technology route

As mentioned earlier, Tengjing Technology's technology is mainly concentrated in fiber lasers, which seems to have no direct relationship with vehicle-mounted lidar. But in fact, benefiting from the technical route of the American lidar company Luminar, Tengjing Technology is becoming a pure vehicle-mounted lidar standard.

Currently, US stock has 5 lidar listed companies, with different technical routes. Luminar adopts a combination of 1550nm and fiber lasers, which is generally believed to be the best perception effect. In addition, Luminar uses a 1550nm laser, which damages the human eye much less than the traditional 905nm laser. On this basis, Luminar further increases its power through fiber lasers, and the power of the InGaAs laser it uses is 40 times that of traditional silicon optical lasers.At present, 12 of the world's top 15 auto manufacturers are testing Luminar and have reached cooperation with manufacturers such as SAIC Group , Volvo , Audi, and Pony Intelligence.

Therefore, the application of fiber lasers is expanding from the field of laser processing to the field of lidar application. The fiber laser used in vehicle-mounted laser radar is similar to the optical path design of laser processing, but the requirements and size structure are different. Therefore, companies with technical advantages in the field of fiber laser light sources will have great technical and product advantages. Tengjing Technology's original molded glass and collimating devices can be used. According to industrial research, the value of some components of the lidar optical path is 500 to 1,000 yuan per unit, and there will be room for reduction after scale in the future.

Currently, Tengjing Technology is already a supplier of Hesai Technology and has also conducted sample delivery certification for Huawei.

From the perspective of safety and reliability, how to pass the automotive regulations is a problem that lidar companies need to face. Tengjing Technology recently passed the IATF16949:2016 automotive industry quality management system certification, which means there are no obstacles in automotive regulations. This is also the most direct reason why the company's stock price has been sought after recently. In terms of mass production of

, Tengjing Technology is undergoing factory relocation. On balance sheet , the company's fixed assets at the end of June 2021 nearly doubled compared with the end of March, reaching 309 million yuan.

Tengjing Technology's new factory building needs to be put into use after experimental cycles, which has affected the release of performance to a certain extent. The revenue in the second quarter of 2021 and the third quarter of 2021 increased by only 4.02% and 8.59% year-on-year respectively. The company is expected to complete the relocation of the factory in the fourth quarter of 2021, and the production capacity will be significantly expanded by then. According to the introduction of the fundraising and investment projects in the previous prospectus, the new production line will add 18 million components and 2.4 million devices each year. In 2019, the company's output of optical components and optical devices was 17.91 million and 1.18 million respectively, which means that after reaching production, the optical component production capacity will double compared with 2019, and the optical component production capacity will double compared with 2019.

Diffraction Optics brings imagination

Tengjing Technology is also one of the few companies in A shares that are deployed in diffraction optics. Its listing fundraising projects include the construction of diffraction optics technology. Optoelectronic components based on diffraction optical technology are computer-aided designs, through the semiconductor chip manufacturing process, etching on the substrate to produce step-type or continuous relief structures, forming optical components with coaxial reproduction and extremely high diffraction efficiency.

AR/VR is the most important application field of diffraction optical components. For example, in head-mounted display devices, diffraction optical components significantly reduce the quality of the helmet display optical system, broaden the spectral range and pupil diameter, solve problems such as large distortion caused by large field of view design and size and weight increase caused by large field of view, and make the helmet display system have a higher cost-effectiveness. For example, in the HoloLens glasses of Microsoft , a multi-layer diffraction grating structure is adopted. A survey minutes circulating in the industry showed that "Tengjing Technology is cooperating with Google to develop AR glasses . The company's product value in AR glasses is about 50%, about 1,000 yuan. At present, the company has cooperated with leading domestic manufacturers to produce optical machines, optical waveguide lenses, etc.." Interface News called the company about this, but did not receive a clear reply. However, according to the research report of Pacific Securities , Tengjing Technology is currently the world's largest auto parts manufacturer Bosch on the automotive head-up display AR-HUD optical device product supplier.

Whether it is lidar or AR/VR, Tengjing Technology has huge imagination space. According to the unanimous forecast of securities companies, the company's net profit in 2022 will be 102 million yuan, corresponding to a 53-fold price-to-earnings ratio. The high valuation reflects the market's imagination of the company's future to a certain extent. Judging from the situation of in the dragon and tiger list, it seems that the hype of hot money is still inseparable from this rise. But in the long run, Tengjing Technology's concept of vehicle-mounted lidar is being confirmed.