Roadway Optoelectronics IPO on the Sci-tech Innovation Board, up 129.23% on the first day, with a profit of 46.08 million in the first half of the year

Core Tip: On August 17, Roadway Optoelectronics was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange. As of the close, Luwei Optoelectronics reported 57.49 yuan per share, up 129.23% from the issue price.
Luwei Optoelectronics (688401.SH), a leading mask company, went public.

On August 17, Roadway Optoelectronics was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange. As of the close, Luwei Optoelectronics reported 57.49 yuan per share, up 129.23% from the issue price.

Previously, Luwei Optoelectronics had been in a state of loss for three consecutive years. Under the development strategy of "using the screen with the core", the company's performance has gradually recovered since last year.

In the first half of this year, Roadway Optoelectronics achieved operating income of 292 million yuan, a year-on-year increase of 43.47%; net profit was 46.0792 million yuan, a year-on-year increase of 151.98%.

R&D empowerment to break the monopoly of foreign manufacturers

On August 17, Roadway Optoelectronics was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange. The company issued 33.3336 million shares this time at an issue price of 25.08 yuan per share. As of the close, it was reported at 57.49 yuan per share, up 129.23%, with a total market value of 7.665 billion yuan.

The company raised a total of 836 million yuan, with more than 400 million yuan raised, which will be used for the expansion project of high-precision semiconductor masks and large-size flat-panel display masks, the construction project of Roadway R&D center and supplementary working capital.

According to the data, Roadway Optoelectronics was established in 1997 and was formerly an electronic circuit company. In 2003, the company invested in the construction of the first chrome mask production line. Since then, it has been committed to the research and development, production and Sales. With the rapid development of the domestic flat panel display and semiconductor industry, the company's business has begun to expand and subdivide into the fields of flat panel display, semiconductor packaging, and devices, and the scale of production and sales has gradually increased.

In 2019, Roadway Optoelectronics successfully built the first G11 high-generation mask production line in China and put it into production, becoming the first company in China and the fourth company in the world to master the manufacturing technology of G11 mask.

After years of technology accumulation and independent innovation, at present, in addition to the G11 high-generation mask, Luwei Optoelectronics has also achieved mass production of 250nm process node semiconductor masks, and has mastered the 180nm/150nm node semiconductor mask manufacturing core technology and high Technologies such as precision halftone masks and photoresist coating have broken the long-term monopoly of foreign manufacturers.

As a technology-based enterprise, Roadway's R&D investment has attracted attention. According to the prospectus, from 2018 to the first nine months of 2021, Roadway’s research and development expenses were 8.2055 million yuan, 19.7917 million yuan, 28.3582 million yuan, and 15.6745 million yuan, accounting for 5.66%, 9.07% and 7.06% of operating income respectively. %, 4.41%.

The performance picks up and the profit in the first half of the year is 46.08 million

Because the mask industry is a typical capital-intensive industry, and the fixed cost investment such as production equipment is relatively large, Roadway Optoelectronics has been in a state of loss for three consecutive years.

The data shows that from 2018 to 2020, the net profit of Roadway Optoelectronics lost 3.6819 million yuan, 46.1283 million yuan and 3.6843 million yuan respectively.

Among them, the loss in 2019 was the most serious. That year, the gross profit margin of the company's main product flat panel display masks dropped sharply, from 47.53% in 2018 to 11.64%. However, the company still paid dividends.

However, since entering 2021, the performance of Roadway Optoelectronics has begun to pick up, and the development strategy of "with the screen with the core" has achieved obvious results. The financial report shows that in 2021, Roadway Optoelectronics will achieve an operating income of 494 million yuan and a net profit of 52.3064 million yuan attributable to the parent, and the gross profit margin has also been improved. Among them, the flat panel display mask is still the company's main source of income, and the semiconductor mask is also growing rapidly.

In the first half of 2022, the company achieved operating income of 292 million yuan, a year-on-year increase of 43.47%; net profit was 46.0792 million yuan, a year-on-year increase of 151.98%.

Talking about the future layout planning, Luwei Optoelectronics said that the company will closely follow the national development strategy, based on the two fields of flat panel display and semiconductor, and continue to increase investment in research and development. At the same time, strengthen basic research on mask-related materials, gradually expand to the field of mask upstream materials, and continuously improve the mask manufacturing industry chain.