Raycus Laser
the leader of Chinese fiber lasers
Please visit Raycus webiste: http://en.raycuslaser.com
Raycus Laser (300747) is the first domestic company focused on fiber laser R & D, production and sales. Its main products include two series of pulsed fiber lasers and continuous fiber lasers. It is the absolute leader of domestic fiber lasers, with a domestic market share of about 15% and a global market share of about 7%, second only to IPG, and has ranked second in the global fiber laser industry.
Chirped fiber lasers have a bright future
Ytterbium fiber lasers have an increasing proportion of lasers due to their advantages such as high conversion efficiency, good beam quality, and small size. In recent years, with the development of fiber laser technology and increasing demand from downstream industries, the fiber laser market has maintained rapid growth. The global fiber laser market size increased from US $ 841 million in 2013 to US $ 2.039 billion in 2017, with a compound annual growth rate of 24.78%, maintaining a rapid growth trend, and is expected to exceed US $ 2.5 billion in 2020.
With the upgrading of the manufacturing industry and the transfer of global manufacturing to China, China’s laser industry has developed rapidly. In 2015, China replaced Europe as the largest consumer market for lasers (IPG China’s revenue share increased from 29.65% in 2013 to 44.10 in 2017 %). Benefiting from the strong demand for processing equipment such as sheet metal cutting, consumer electronics, new energy, and PCB circuit boards, the domestic laser processing equipment market size reached 49.5 billion yuan in 2017, an increase of 28.57% year-on-year. It is estimated that the size of the domestic laser equipment market will exceed 60 billion yuan in 2018.
Competitive company advantage
In the long run, the company has obvious advantages in technology, supply chain layout and shareholders. In terms of technology, the company has three “Thousand Talents Plan” experts as its core, and has formed a R & D team of more than 160 people with doctoral and master degrees as the main body, forming vertical integration of upstream industrial chains such as special optical fibers, fiber optic components, and semiconductor lasers. It has realized the in-depth integration of talent chain, innovation chain and industry chain, and was selected as a national key area innovation team in 2014.
In terms of cost, the company achieved self-made core components and reduced costs. Among them, the cost of active optical fiber dropped by about 8%, the cost of pump source and passive optical fiber dropped by about 10%, and the cost of electronic components and power supply decreased by 25%. The cost of the housing has dropped by about 5% and the cost of various raw materials has reduced the company’s gross profit steadily and has good profitability. The company’s recent acquisition of Core Fiber is expected to achieve greater cost breakthroughs in the optical fiber field.
At the same time, the company is also backed by the Aerospace Science and Industry Group, which is a state-owned large-scale high-tech enterprise directly managed by the central government. It has multiple missile system products and also directly participates in the “Shenzhou” series of spacecraft and “Chang’e” exploration. R & D, production, testing and monitoring of monthly projects.
The company’s high power breakthrough can be expected
Domestic fiber laser companies started late. Since 2007, domestic enterprises represented by Raycus Laser have gradually realized the industrialization of fiber lasers from low power to high power, but the main sales products are concentrated in lower prices and added value. In the field of low and medium power, high-power fiber laser products are still dominated by foreign companies.
At present, the localization rate of low-power fiber lasers exceeds 95%; medium-power fiber lasers, domestic and imported chambers, and high-power fiber lasers, the localization rate is only 10%, of which Raycus Laser accounts for 67.2% of domestic high-power fiber lasers. From the perspective of grassroots research, the current gap between Raycus Laser and IPG at 3300W and below is not large, and has been recognized by the market; 6000W achieved batch shipments in 2017, and 6000W achieved heavy volume with key customers as the breaking point in 2018; 10,000 watts Currently in a small batch state, high-power breakthroughs can be expected. At the same time, as the gross profit margin of continuous fiber lasers is 20% higher than that of pulsed fiber lasers, the company’s gross profit margin level is expected to further increase in the future.
Coded semiconductor laser
A holmium semiconductor laser is a laser developed in the 1960s, using semiconductor materials as the working substance. At present, the global semiconductor laser market is large in scale, and is expected to increase from 3.72 billion US dollars in 2013 to 5.31 billion US dollars in 2017, with a compound annual growth rate of 9.30%.
The company has many years of R & D and production experience of fiber lasers. The medium and high power direct semiconductor lasers and fiber lasers have a lot of common technologies. The company already has the research and development and production capabilities of medium and high power direct semiconductor lasers. The products cover 80W to 3000W. The company produces direct semiconductors. Lasers have higher electro-optical conversion efficiency than fiber lasers. In 2016 and 2017, the sales volume of semiconductor laser products was 756,300 yuan and 3.7394 million yuan, respectively.
Auray Laser plans to use the 536 million yuan raised in the IPO to promote the construction of medium- and high-power semiconductor laser industrialization projects. The coded semiconductor laser reflects the company’s accurate grasp of future industry trends. With a large number of interworking technologies between semiconductor lasers and fiber lasers, the company is expected to become a dual leader in domestic fiber lasers and semiconductor lasers in the future.
With ten times growth space
Kuntianfeng Securities said that the company ’s gross profit margin and net interest rate have increased for three consecutive years. In 2017, the net profit margin reached 29.37%, exceeding the company ’s benchmark international giant IPG, demonstrating the company ’s excellent cost and expense control capabilities. It is estimated that the company’s net profit attributable to the parent from 2018 to 2020 will be 468 million yuan, 697 million yuan and 974 million yuan, with a year-on-year growth rate of 68.75%, 48.98%, and 39.72%. The estimated earnings per share will be 3.65 yuan, 5.44 yuan, and 7.61 yuan, respectively. . The company’s reasonable PE in 2018 was 46.77 times, and the corresponding reasonable price was 170.71 yuan. The first coverage was given an “overweight” rating.
Ping An Securities stated that as the leading company of fiber lasers in China, Raycus Laser will continue to lead the localization process of fiber lasers. In the future, with the continuous increase of the self-made rate of core components and the increase in the proportion of high-power product sales, the company’s gross profit margin will further increase. Room for improvement. The company’s EPS is expected to be 3.51 yuan, 5.02 yuan, and 6.93 yuan from 2018 to 2020, corresponding to current, stock price-earnings ratios of 41 times, 28 times, and 21 times, respectively. The first coverage is given a “strong recommendation” rating.
Tong Guoxin Securities said that under the technical leadership of three national “Thousand Talents Plan” experts, the company has successively developed and produced 100W to 10KW continuous fiber laser products, breaking foreign monopolies, gradually achieving import substitution, and driving the company’s rapid growth. From 2014 to 2017, the company’s compound revenue growth rate exceeded 60%, and the compound net profit compound growth rate was 174%. Benchmarking the global leader IPG, the company has 10 times the growth space. It is estimated that the company’s earnings per share from 2018 to 2020 will be 4.92 yuan, 7.25 yuan and 10.41 yuan, respectively. The first coverage will be given a “buy” rating.
So ,why Raycus Laser growing so fastly ?
On one side , Compare to IPG laser source ,Raycus also has good quality , based on the giant market in China , Raycus can really bring the cost down , to enbrance more customer .
On the other hand , within the issurance period , if there is any quality issue , Raycus after service team will directly replace your problematic laser source with brand new same model one , fast response speed can save customer from shutting down the factory caused by machine problem.
