In 2023, with the recovery of cultural and tourism landscape lighting, the classroom lighting market is booming, and the construction of digital lighting systems under the dual-carbon strategy is accelerating, and lighting companies will usher in the dawn of the industry. Recently, Opple Lighting Co., Ltd. (hereinafter referred to as "Opple Lighting", stock code 603515), a leading A-share green lighting company, released its first quarterly report for 2023. %, the net profit attributable to the parent was 97.9 million yuan, a year-on-year increase of 47.79%.
On the day when the financial report was released, Opple Lighting rose by the daily limit. Southwest Securities believes that with the recovery of lighting demand, Opple Lighting will practice its internal strength, and its comprehensive strength is expected to be further strengthened to achieve healthy growth, and it has made a "hold" rating for the stock.
So, how does Opple Lighting cultivate its "internal strength"? Why can profits in the first quarter achieve a growth rate of nearly 50%? How will the wave of digital lighting systems boost the growth of OPPLE Lighting?
The prosperity of the lighting industry has been boosted, platform-based development has improved the quality of profitability
Since the beginning of 2023, the trend of consumption recovery has been determined, and the state has issued a series of favorable policies to promote the development of the lighting industry, and the quality of business activities of related companies has also steadily improved. As shown in the first quarterly report, the revenue and net profit of Foshan Lighting increased by 7.03% and 6.28% year-on-year respectively, while the growth momentum of Opal Lighting was even stronger.
The financial report shows that in the first quarter of 2023, in addition to revenue and net profit attributable to the mother of Opal Lighting achieved growth of 3.27% and 47.79% respectively, the net profit after deducting non-recurring gains and losses was 75.73 million yuan, a year-on-year increase of 477.24%. The cash flow growth doubled, the net cash flow was 200 million yuan, a year-on-year increase of 124.45%, and the basic earnings per share increased by 44.44% year-on-year.
Judging from the growth rate of net profit and net cash flow far exceeding the growth rate of revenue, Opple Lighting's operating efficiency has been greatly improved, and the company has good sustainable growth. At the same time, it also reflects that Opple Lighting's methodology of promoting cost reduction and increasing efficiency through platform-based development and consolidating product competitiveness through technological innovation has passed the market test.
The financial report shows that in the first quarter of 2023, the total operating cost of Opple Lighting was 1.38 billion yuan, a year-on-year decrease of 3.3%. Except for the 36.6% year-on-year increase in research and development expenses, all other expenses have dropped significantly.
Behind the decline in expenditure is the gradual maturity of the platform-based development system promoted by Opple Lighting. According to the financial report, for the standardized structure and components of similar products, Opple Lighting will conduct unified development and procurement, and conduct derivative development on the same technology platform. In addition, as far as the manufacturing process is concerned, standardized component production can improve the efficiency of automated production and ensure timely delivery. Up to now, Opple Lighting has completed the construction of multiple product-level platforms such as spotlights, ceiling lights, bathroom heaters, and fan lights, as well as dozens of optical, power, structure, material, and component platforms, helping the company reduce costs and increase efficiency.
Platform development also plays a vital role in the stability of Opple Lighting's gross profit margin. In the past few years, Opple Lighting's gross profit margin has remained at around 30%. The financial report shows that from 2018 to 2022, the gross profit margin of Opple Lighting will be 36.46%, 36.55%, 37.74%, 33.00%, and 35.72%, respectively, while Sanxiong Aurora, another giant in the lighting industry, only broke through 30% in the first quarter of this year. Off, to 32.61%.
In addition to platform-based development, the breakthrough and innovation of retail methods is also a highlight of Opple Lighting's financial report. After all, no matter how to improve the efficiency of the production process, the products must be converted into corporate income and recognized by the market. Therefore, sales channels must be competitive.
Opple Lighting adopts a distribution-based sales model supplemented by direct sales. In the industry, there are not many companies with direct sales channels. For example, the domestic business of Sanxiong Aurora and Foshan Lighting adopts the distribution model, because the distribution channel can go deeper and expand the sales tentacles, but the advantage of the direct sales channel is that it can reflect value-added services through the overall plan and expand the brand influence.
For example, the current trend of smart home, Opple Lighting continues to deploy the field of smart lighting for the whole house, develops more than 150 smart experience halls for the whole house, and promotes the use of digital design sales platform - "Opple Designer", dealers can use "Opple Designer" Realize VR voice on the same screen to watch the design plan and real scene plan, interact with users, and promote online drainage. As of the end of the reporting period, "Opple Designer" has recorded more than 60,000 cases, and the number of customers has exceeded 90,000.
The emergence of "Opple Designer" also means that Opple Lighting has started the digitalization process. In fact, in recent years, many lighting companies have explored and tried digitalization. For example, Sanxiong Aurora built the Yingling Smart Experience Pavilion, and Qingyi Lighting recently cooperated with Wowan Myjia to build a digital architecture.
Although digitalization is the future trend of all walks of life, but for lighting companies, what does digitalization mean? Is it the real development needs of the industry itself, or is it just following the general trend of the times? From the digitization process of Opple Lighting, we may be able to find the answer.
Digital empowerment Opple Lighting is expected to further increase market share
Lighting products are often misunderstood as lamp manufacturing, and neither the market potential nor the technology content seems to be attractive. But in fact, lighting is closely related to daily production and life, and the scope is extremely wide, including not only various scene lighting inside all buildings, which is commonly referred to as indoor lighting, but also outdoor building and urban landscape lighting, road lighting, It also includes the lighting of various mobile facilities and equipment such as aircraft, ships, trains, and automobiles. All places with human activities basically have lighting needs, and lighting products are inseparable.
Driven by market demand, my country's lighting industry has basically shown a steady growth trend, especially the export scale, which has been significantly better than the domestic market in recent years. According to the prediction of Qianzhan Research Institute, in 2027, the global LED lighting industry market will reach 275 billion US dollars.
In such a market with long-term development potential, digitalization is especially necessary. Because with the individuation and diversification of consumer demand, enterprises must have a more efficient R&D, design, production, and sales system if they want to keep up with the pace and maintain long-term competitiveness, and this is inseparable from digital empowerment.
For Opple Lighting, another significance of digitization is that it can help it stabilize its top-ranked market share and further expand it. From the perspective of supply, the output value of the domestic general lighting industry in 2022 is 274 billion yuan, but the leading share is less than 5%, and the industry CR5 is expected to be less than 10%. The industry share is highly dispersed, and the potential for increasing the leading share is sufficient. In this context, if Opple Lighting can further release its development momentum through digitalization based on its current strength in products and channels, it will be able to gain a larger market share.
At present, Opple Lighting has formed a clear digital path, and will promote the improvement of the operation capability of the whole value chain through three aspects: marketing digitalization, supply chain digitalization, and digital operation. Digitalization is actually a common choice for lighting companies. For example, Foshan Lighting has built its own digital benchmarking workshop. Sanxiong Jiguang actively embraces platforms such as short videos, Zhihu, Toutiao, and WeChat, and integrates commercial, public, and private domain traffic for digital marketing. .
The digitalization of Opple Lighting is to improve the efficiency of daily management, production and other links bit by bit through digitalization, and finally trickle into a vast ocean. The first is product marketing that faces the market. Opple Lighting has launched a marketing digital system that visualizes channel purchase, sales, and inventory management, standardizes business behavior, and streamlines marketing business processes to realize online and transparent management from headquarters to consumers, and boost the company from Transformation from traditional marketing to big data marketing. The second is the supply chain field at the production end. On the basis of the procurement and logistics management system that has been launched in the early stage, Opple Lighting will further launch the planning management and production management system in 2022, through APS (Advanced Planning System) and MES (Manufacturing Execution System) etc. The introduction of the system realizes the online management and analysis of manufacturing data, improves the transparency and visualization of the manufacturing process as a whole, and promotes efficient collaboration between planning and production.
On the whole, Opple Lighting has improved human efficiency and shortened the order delivery cycle through digital means, and the enhanced efficiency of production and marketing will boost the company's market share and industry status. With the recovery of the industry's prosperity and the further clarification of the digitalization path, Opple Lighting has a bright future for development. Whether it can enter the smart home market with lighting scenes as the entry point is also the imagination left by Opple Lighting to the market.
Looking forward to the future, Opple Lighting stated that it will develop into an industry-leading lighting system comprehensive solution service provider based on digital and intelligent manufacturing, and actively expand into smart home and other fields through ecological strategies.
Opple Lighting, which creates value with light, has lighted its way forward.
Author: Good blue is not good
Source: Songuo Finance