Optical crystal: the Blue glass high visibility Video luxury goods Glasses flexibility

The Company announced the Annual Report of 2012: income of 5.9 billion, an increase of 36.8%, operating profit of 170 million, an increase of 19.9%, attributable to the listed companies net profit of 148 million, an increase of 21.2%, earnings per share of 0.59 yuan. Dividend plan: to be 10 to send 2 million every 5 shares. Notice: 13 years Q1 net profit year-on-year increase of 120-140%.

Benefit from a single power SLR OLPF and blue glass (1369,7.00,0.51%) filters rapid business growth, revenue in the second half of the company remain high, and the gross profit margin is higher quarterly basis. The company Q1 revenue of 093 million, 144 million, 181 million and 1.74 billion; net profit of 10,020,000, 33,400,000, 58,980,000 and 45,530,000 yuan; analysis Q2 performance improvement was mainly from yield improvement and capacity utilization rate of increase in Q3 and Q4 results improved from the amount of new customers on new products. Another noteworthy aspect is the trend in gross profit margin increased quarter by quarter, and were 35.7%, 40.1%, 47.2% and 56.4% (annual consolidated gross profit margin of 46.4%, 48.9%) in 11 years, quarter by quarter and 2011 formed in contrast to our analysis, the addition by the rapid income growth of the economies of scale, the company's new core customers is relatively high gross profit margin of blue glass business, 13-year gross margin is expected to continue to maintain a high level.

LED sapphire substrate projects on track and start profitable. 12 LED sapphire substrate income of 49.85 million yuan, an increase of 424%, the gross profit margin of 14.7%, net profit of 290 million yuan. Capacity flat sheet 200,000 / month, PSS5 000 pieces / month, 2 inches.
Smart phone with blue glass filter (IR-CutFilter) and SLR single electronic camera with an optical low-pass filter (OLPF) is still 13 years the highest growth drivers of visibility and certainty. SLR single power OLPF and package cover, as well as smart phone with blue glass filter 13 years will continue to be the highest visibility growth drivers, blue glass business customers enter the last year, is expected this year, Sunny Optical domestic customers shipments are expected to grow faster, become the most important incremental.

Is expected to become the next new strategic business based on micro-projection video luxury glasses. By photoelectric the shareholding subsidiary of Zhejiang Jiang Jingjing to enter the field of micro-investment in DLP and LCOS technology research and development. As Google Glass close to commercialization, we are highly optimistic about the company supporting optical components (such as Google [microblogging] prism glasses) field development potential in the video glasses, is expected to become the largest source of than-expected results.

Expected Q1 net profit year-on-year increase of 120-140% in 13 years. The company expects first quarter net profit of 13 years between 2000-2400 million, an increase of 120-140%, equivalent to earnings per share of $ 0.08-0.10.

Not consider the video glasses business, the company forecast earnings per share in 2013-15 0.94,1.34 and 1.75 yuan, an average annual growth rate of 43%. Maintain "highly recommended" rating, short-term target price of 40.2 yuan / share, corresponding to 2014 PE of 30 times.

Risk Warning: isabel marant berry boots lower than expected; SLR single power lower than expected; cartier love glasses commercialization of lower-than-expected