The Secret And Stratagem Of Lans Technology

Lixun precision, LANs technology and golfer are the "three giants" of A-share Apple industrial chain, with market value of more than 100 billion. Compared with Lixun and gol in the past year, LANs Technology (300433. SZ) is calm.

Its latest push into the spotlight, or in September last year, became one of the main characters in the uproar of the company. At that time, some media reports said that most of the touch orders of ofI light had belonged to lens technology after Apple removed the list of its supply chain. However, lens technology then made a statement, saying that it did not release relevant information about accepting the order of ofight.

In the following months, although Apple's industrial chain was in constant turmoil and fell into a downturn, the market did not target lens technology. It has to be said that this is a delicate existence.

Recently, the 2020 annual report released by lens technology shows that the company's operating revenue has reached 36.939 billion yuan, an increase of 22.08% over the same period of last year; The net profit attributable to shareholders of listed companies was 4.896 billion yuan, up 98.32% year on year.

Compared with the other two fruit chain targets, such results are not inferior.

Compared with Lixun and gol in the past year, LANs Technology (300433. SZ) is calm. Visual China

It's not bad money

In terms of volume, Lixun precision is the largest among the "three giants". Last year, it achieved operating revenue of 92.5 billion yuan, net profit of 7.225 billion yuan and non net profit of 6.089 billion yuan. Its total market value also ranked first, with the latest market value of 251.7 billion yuan; The operating income of golfer is 57.74 billion yuan, the net profit is 2.848 billion yuan, the non net profit is 2.759 billion yuan, and the total market value is 126.1 billion yuan.

Although the revenue scale of LANs technology is not as large as that of golfer, the annual operating revenue is 36.939 billion yuan, but the net profit scale is better than that of golfer, which is 4.896 billion yuan and the non net profit is 4.4886 billion yuan. Based on the better profit performance, the market value is higher, and the latest total market value is 142.2 billion yuan.

Let's look at liquidity indicators. Abundant and free cash flow has become one of the competitive advantages of lens technology. In 2020, the net operating cash flow of lens technology will reach 7.58 billion yuan, an increase of 4.55% compared with 7.25 billion yuan in the same period of last year.

Lance technology told the 21st century economic reporter, "this makes the company play a good role in resisting financial risks, undertaking more business orders, and improving the core competitive advantage and investment value of the enterprise."

Over the same period, the net cash flow from operating activities of Lixun precision was RMB 6.873 billion, and that of gol was RMB 7.682 billion.

In terms of monetary capital, Lance technology also left the two far behind. As of the end of last year, there were 19.28 billion yuan of monetary capital lying on Lance's account; Over the same period, the precision of Lixun was 10.53 billion yuan, and that of gol was 7.788 billion yuan.

Since "the account has money", Lance technology is not stingy to investors, and began to make a big dividend. In 2020, the company plans to distribute cash of 3.5 yuan (including tax) per 10 shares, accounting for 35.55% of the net profit attributable to shareholders of Listed Companies in the consolidated statements, and the cash dividend will reach 1.74 billion yuan.

Other core data show that in 2020, the overall gross profit rate of lens technology will increase by 4.23 percentage points, and the profit level will be significantly improved. Meanwhile, during the reporting period, the company's expenses decreased and the management efficiency improved. Among them, the interest expense decreased from 748 million yuan in 2019 to 534 million yuan in 2020. In addition, the debt structure of lens technology has also been improved, and its solvency has been further improved, and the asset liability ratio has decreased by 5.47 percentage points.

In terms of R & D, since its listing, lens technology has invested nearly 10 billion yuan in R & D. In 2020, the R & D investment of lens technology is 1.442 billion yuan, which is lower than that of the same period of last year. The company claims that it optimizes the R & D mode and realizes precise R & D during the reporting period.

"The company's revenue increased slightly while the profit doubled, reflecting the success of the strategic layout in 2020. The company is keen to seize the industry opportunities, expand its product portfolio through vertical integration, expand production in time to meet the incremental needs of key customers, and finally achieve outstanding performance. " Zhang Xiaorong, President of the Institute of deep science and technology, former senior vice president of a securities company and chief Internet analyst, told reporters of the 21st century economic report.

The joy and worry of relying on apple

Behind the above achievements of lens technology is the support of a number of well-known customers. The company has reached long-term deep cooperation with apple, Samsung, Xiaomi, oppo, vivo, Huawei, Tesla, Amazon and other brands. Among the above customers, as we all know, the most eye-catching label on lance technology is the apple supplier.

According to the analysis data of securities companies, as the core supplier of Apple glass cover plate, the company's supply share in Apple's supply chain has steadily increased. In the first half of 2020, the company's supply share has reached about 75%, and its market leading position is obvious.

Apple orders also accounted for half of the company's revenue. According to the annual report, the sales volume of lance from its largest customer last year was 20.3 billion yuan, accounting for 54.97%. Although it is not clear who the top customer is, the market knows it well.

In terms of products, lens technology's small and medium size protective glass achieved 24.48 billion yuan in business revenue last year, accounting for 66.27%, large-size protective glass accounting for 15.25%, new materials and other products accounting for 16.63%, and other business income accounting for 1.85%.

"Lens technology has a comprehensive layout based on glass cover plate, which can meet the diverse needs of mobile phone manufacturers. The diversified needs of global mobile phone giants can be met by lens technology, and lance technology has a higher risk resistance ability." Lin Zhi, chief analyst of wit display, told reporters.

LANs technology said that it will always keep up with the development trend of the upstream technology demand of major customers, take the lead in development and investment, and continue to extend to the industrial chain in depth. At present, the company's business has covered windows and appearance protection glass, sapphire, precision ceramics, precision metal, touch module, camera, key accessories, assembly, etc. The products are widely used in smart phones, tablet computers, notebook computers, intelligent wear, vehicle equipment, smart home appliances and other fields.

It is understood that lens technology is the first enterprise to introduce glass screen into high-end smart phones and tablet computers, apply ceramics and sapphire materials to smart phones and smart wearable devices for the first time, and apply 3D glass to smart phones for the first time.

But with the case of ofight, the risk of the market on Apple's supply chain has increased to an unprecedented degree of tension.

Nyingchi further said, "the risk of lance technology being kicked out of the supply chain is relatively small, because lens technology expands the business of sapphire, ceramics, metal, touch control, lamination and metal case horizontally based on the glass cover plate, and vertically extends the assembly business to involve in intelligent terminal manufacturing, and the industrial network of blue science and technology intelligent terminal can meet the needs of apple in many aspects. Moreover, lens technology has laid out its smart car business and become a supplier of Tesla. In the future, lens technology is likely to further become the supplier of Apple's smart car and carry out more diversified cooperation. "

This may be why lance has not been "hard hit" by the market.

Expand industrial chain layout

A man who has no foresight must have immediate worries. LANs technology, which has been in Apple's supply chain system for many years, will not ignore the hidden worries behind it.

In recent years, Lance technology has made frequent actions to accelerate the expansion of upstream and downstream supply chain.

In August last year, Lance technology announced that its wholly-owned subsidiary lance international would purchase 100% equity of Kesheng Technology (Taizhou) Co., Ltd. and Keli Technology (Taizhou) Co., Ltd. with cash of 9.9 billion yuan.

Kesheng Taizhou and Keli Taizhou are leading manufacturers of metal case for smart mobile phones in the industry, and are suppliers of Kecheng Technology (2474. TW). Kecheng technology is an apple supplier, and Kesheng Taizhou and kelitazhou are their business in mainland China. After the supplier code is transferred to lens technology, it will supply the final customers through lens technology.

LANs technology points out that its main business is glass, sapphire, ceramics, plastic and metal small parts processing business, and has upstream and downstream business relationship with Kesheng Taizhou and Keli Taizhou“ Through this transaction, it lays a foundation for the company to further expand its business to the downstream supply chain. "

In February this year, lens technology accelerated the production capacity layout of its assembly business with another 3 billion yuan, including but not limited to: smart phones, tablet computers, wearable devices, automotive electronics, smart home appliances, medical equipment, electronic cigarettes, etc.

This is due to the consideration of industrial chain layout. LANs technology said that in recent years, the company has covered most of the modules commonly involved in the whole machine assembly of intelligent terminals, and the development of the whole machine assembly business on this basis will produce a strong synergy effect.

Zhang Xiaorong said, "LANs has a good forward-looking layout. With the promotion of 5g network and the gradual increase of consumer demand such as smart cars, the consumer electronics industry will maintain a high outlook for a long time. LANs business has been expanded into many sub areas, and is expected to further enhance the company's asset scale, expand the business scale and obtain long-term benefits. "

In the diversified layout of lance, if the smartphone business will decline in the future, where will the business increment of hedging risks be?

The answer is hidden in the company's 15 billion fixed increase plan implemented in December last year. In addition to continuing to increase the production capacity of consumer electronic parts, the focus of this fixed increase is to increase the capacity of intelligent auto parts.

Soochow securities research paper points out that the first stage of LANs technology starts with the front and rear glass cover plates of mobile phones, and gradually covers other fields of smart phones, such as metal case and whole machine assembly. The second stage is towards wearable devices, such as touch display modules for smart watches and Sapphire / ceramic back cover plates, as well as the whole machine assembly. In the third stage, it will further develop into the automotive electronics field, such as the central control instrument screen cover plate and window, B-pillar and medical electronic equipment assembly. In recent years, the business development direction has been clear, and the one-stop service platform has taken shape.

LANs technology told reporters that in 2020, in addition to the rapid growth of smart phone business, tablet computer, intelligent wear, smart car and other businesses also showed strong development momentum, becoming an important growth point of the company's performance.

In the annual report, Lance technology wrote that: in the next five years, the company will actively develop into a wider downstream intelligent terminal market, open up the space for innovative products in the smart car market, expand the company's sales scale for intelligent cars, smart wear, smart home appliances, medical equipment and other industries, and constantly expand new growth points.

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