EVETAR, which has more than 60% of its overseas business, uses flexible strategies to avoid the impact of the trade war. In the future, EVETAR will continue to expand the influence of Chinese optical lenses in the world by virtue of its high-quality products and flexibility in sales and services.
Video surveillance and mobile phone cameras make life full of cameras.
These ubiquitous cameras are probably produced by Chinese manufacturers, because in 2018, Chinese manufacturers accounted for at least 79% of the global mobile phone camera market， global security surveillance cameras accounted for at least 93.7%.
These manufacturers include Forecam shares (688010) with a market value of 6.2 billion, Union Optech (300691) with a market value of 3.3 billion, and Sunny (HK2382) with a market value of 100 billion.
However, the gross profit margin of these well-known listed companies is not as good as EVETAR Optics, which has a revenue of only 590 million and is not listed: EVETAR has maintained a gross profit margin of more than 52% in recent years, while the average gross profit margin of other domestic comparable listed companies Roughly around 35%. Among them, Sunny (HK2382) has the highest gross profit margin, but it does not exceed 45%.
The gross profit margin of EVETAR products is higher than other comparable listed companies. Why? Is it export-oriented, will it be affected by the trade war?
The highest gross profit of optical lens in China
The modern optical lens industry started in Germany in the 1860s. Representative companies include Carl Zeiss and Leica. Today, Zeiss lenses are still the typical representatives of the world’s lenses.
With the rapid development of modern science and technology, as well as international industrial transfer and division of labor, the optical lens market has developed into a globalized and multi-polarized market with fierce competition.
In the process of international industrial transfer, important players in the high-end market such as Japan’s Canon (CANON), Nikon (NIKON), Tamron (TARMON), and FUJINON (FUJINON) have been left behind, and Taiwan, China has developed with the popularization of consumer electronics LARGAN, GENIUS and other enterprises.
According to TSR statistics, in 2018, the top seven manufacturers in global shipments were all Chinese companies, and these seven manufacturers together accounted for 93.7% of the global market share, which also marked the shift of optical lens manufacturing to mainland China.
Although Leading Optoelectronics has a small market share, its gross profit margin of more than 52% is among the best in the industry, far exceeding the average level of 30% to 35% of comparable domestic companies, and also significantly higher than Sunny Optical, which has the second gross profit margin.
The reason why EVETAR’s gross profit margin is higher than that of domestic comparable companies is that it mainly exports mid-to-high-end products. The products have higher added value and naturally have higher gross profit margins.
Most of EVETAR’s comparable companies are mainly in the domestic market. The downstream customers are mainly Hikvision (002415) and Dahua (002236), which have very strong bargaining power. These two companies have firmly occupied the domestic market through low price strategies. market. Therefore, Hikvision and Dahua have very strict controls on supplier prices, at the same time, the prices of optical lens suppliers. For example, Dahua clearly stipulates that if the price of the product supplied by the supplier in the same period is higher than the market price of the product or the price supplied to a third party, Dahua has the right to change the price of the executed order, and the supplier must agree to The difference is directly deducted from the payment payable.
Compared with companies that rely on Hikvision and Dahua shares, EVETAR downstream terminal manufacturers are almost all from overseas, such as Panasonic, Axis, Bosch, Arlo ), Ring and other world-renowned electronic product manufacturers or brands, the overseas revenues accounted for 65.80%, 70.85%, and 78.24% respectively in the past three years.
In addition, Leading Optoelectronics’ positioning in the mid-to-high-end market is also an important reason for its high gross profit margin.
This is because international high-end lenses compete for technology, quality and brand, and price is a secondary factor; while domestically, price has become the core factor of competition.
To become a high-end optical lens supplier to overseas high-quality manufacturers, the quality of EVETAR’s products is crucial:
At present, EVETAR 255°field angle horizontal fisheye lens, fixed focus lens with up to 16 million pixels, starlight zoom lens with 0.95 light transmission, long-focus short-wave infrared lens and other optical lens products belong to their respective subdivisions. It is a product with high technical difficulty and leading industry level.
Leading Optoelectronics is able to manufacture so many high-quality optical lenses, mainly because of its high level of technology. It has formed “optical system temperature drift control technology”, “optical lens ghost image, stray light analysis and control technology”, etc. Six core technologies.
Skillfully avoid trade wars