OFILM's 2021 performance forecast: smart cars or become a new growth pole for business

On the evening of January 28, OFILM disclosed its 2021 annual performance forecast, and it is expected that the net profit loss attributable to the shareholders of the listed company will be 1.9-2.7 billion yuan. In the announcement, OFILM explained the main reason for the large year-on-year decline in net profit in 2021, and the company's shipments of products related to specific customers fell sharply year-on-year. Due to the great changes in the international trade environment, the company's H customer smartphone business was subject to chip supply cuts and other restrictive measures, resulting in a sharp decline in the company's shipments of many products year-on-year. In addition, while developing the core business, the company actively expands new business, layout of intelligent vehicles, VR/AR, industrial, medical, action cameras and other new areas of products and other optical optoelectronic business, new business research and development investment is larger, which has a certain impact on the profit during the reporting period.

It is worth noting that in the past 2021, based on the needs of future development, according to the current operating conditions and market environment, OFILM released the "Strategic Plan for the Next Five Years (2021-2025)" to build a strategic positioning of the business architecture system of smart phones, smart cars and new fields. It is not difficult to see that OFILM, which is in a period of strategic transformation, is relying on optical advantages to Rio Tinto's new business. In the future, with the gradual penetration of intelligent vehicles, VR/AR and other industries, it is expected to form a first-mover advantage and open up growth space.

Previously, OFILM experienced twists and turns such as losing overseas major customer orders, and its revenue and profit declined, but it remained active in research and development investment and project layout. In this context, the company comprehensively inventoryed all kinds of assets, and the performance forecast took the initiative to report losses, which avoided the performance change face with a high probability, and further reflected the company's progress and confidence.

Lay out smart cars in advance and embark on the fast track of optical development

Minsheng Securities released a research report that in ten years, the penetration rate of smart electric vehicles has increased rapidly, and a new round of Zhugra cycle in the industry is being opened. The first half of electrification has created a number of global leading companies such as Ningde Times, and the second half of intelligence is expected to create a new batch of global auto parts leading enterprises in the next 10 years, and the auto parts sector will become the main investment direction of the next 10 years of production capacity cycle.

At present, under the outlet of intelligent vehicles, the penetration rate of ADAS (Advanced Driver Assistance System) is constantly increasing. Industry data shows that the market size of China's ADAS industry will reach 84.4 billion yuan in 2020, and it is expected to reach a market size of 225 billion yuan in 2025. As one of the basic components to realize the function of ADAS, the camera has also allowed optical manufacturers to increase the number of intelligent car tracks. OFILM mentioned in the five-year plan, "The company will rely on the technical advantages in the field of optical optoelectronics, deep layout of automatic driving, body electronics and instrument central control, based on optical lenses and cameras, extended to millimeter-wave radar, lidar, head-up display (HUD) and other products, enrich the product matrix layout, to provide customers with a full range of products and services." ”

The vast blue ocean market for on-board cameras has attracted many traditional optical companies to join the automotive track with their advantages in technology, technology and customer accumulation. For example, optical leader OFILM began to enter the field of intelligent vehicles as early as 2015, and successfully became a Tier1 supplier of domestic vehicle manufacturers through the acquisition of East China Automobile and Nanjing Tianqing, and has obtained the supplier qualification of more than 20 domestic and foreign automobile manufacturers, and actively carried out supplier qualification certification for foreign automobile manufacturers. In 2018, OFILM further strengthened its layout in in-vehicle lenses and promoted the development of its smart car business by acquiring Fuji Tianjin Lens Factory.

At the recent 5th Annual Meeting of Gaogong Intelligent Automobile and the Annual Golden Globe Awards Selection and Award Ceremony, OFILM was awarded the "2021 Intelligent Driving Market Segment (Camera Module) Leading Supplier"; combined with comprehensive factors such as research and development strength, shipment volume and revenue performance, according to the statistical analysis of Chaodian Think Tank, OFILM was selected as one of the top 10 manufacturers of automotive cameras in the world.

Image source: Camera observation

OFILM has publicly stated many times that the company will take the intelligent car business as the key business area to develop, increase the allocation of resources in all aspects from research and development, market sales, production, etc., and strive to achieve the industry-leading revenue scale of the intelligent car business by 2025.

Accumulate the power to repair and speak with the hard power of research and development technology

The competition barriers in the optical industry are extremely high, and enterprises must not only ensure solid technical reserves, but also maintain large R&D investment to improve their core competitiveness. "When science and technology prosper, enterprises prosper, and strong science and technology make enterprises strong." As a leading enterprise in the optical industry, OFILM has now formed a technology-oriented and innovation-driven business model.

Increasing research and development efforts is an important part of OFILM's five-year strategic plan. IN OFILM's strategic plan for the next five years, the company will closely focus on the development idea of "focusing on the core, innovation-driven, consolidating the foundation, and moving steadily and far-reaching", and continue to optimize the company's internal resource allocation and business structure through technology research and development and product innovation, increase the proportion of high value-added products, and improve the company's overall operational efficiency and profitability.

According to public information, in the first half of 2021, OFILM's R&D investment reached 946 million yuan, accounting for 8.06% of operating income, an increase of 4.58% year-on-year, and continued to maintain a high level of R&D investment. As of June 30, 2021, the Company has filed 5,193 patents worldwide and obtained 2,449 granted patents.

At the same time, the company has a global R & D team, in the Chinese mainland and Taiwan, the United States, Japan, South Korea, and Europe and other places have established an innovation and research and development center, and actively with domestic and foreign universities, scientific research institutions to establish a close cooperative relationship, continue to pay attention to market dynamics to obtain industry cutting-edge information, R & D-driven innovation, focus on technological breakthroughs.

Whether it is a technological breakthrough, or a mass production of products, or a yield improvement, OFILM has put into long-term R & D investment and patience in every link. OFILM will, as always, adhere to technological innovation, accelerate transformation and development, and focus on the upstream core technology field with high added value and high technical content.

In the long run, under the guidance of the five-year strategic planning, OFILM will rely on the steady development of research and development technology, deeply cultivate the intelligent car track, and open up new growth channels.