the world's largest fiber optic manufacturer, with the country's only national fiber optic laboratory, stock volume

is the world's largest supplier of optical fiber preforms, optical fibers and optical cables. With its strong competitiveness in this field, the company's products have been successfully applied in high-end CT medical equipment of Siemens and American General Motors.

　　In addition, the company also has the only state key laboratory in China's optical fiber and cable industry, and is the country's first listed company with optical fiber preform production capacity.

　　now, the company's historical net profit has increased for two consecutive years, and in 2022, the net profit of 1.167 billion yuan hit a record high in the past four years.

　　in the fourth quarter of 2022, the company's short-term solvency is not very strong, and the translator will detail these details at the end of this article.

　　now, the company's stock has recently emerged from a short-term upward trend after a sharp correction of 35%.

　　Hello, everyone. I am a financial report translator. Today, I will investigate the 2022 financial report of Changfei Optical Fiber (stock code: 601869), a listed company in the concept section of communication equipment. The following will enter today's topic.

　　Main business and core competitiveness

　　, was a man. His voice was very stable and his attitude was not bad.

　　conversation, the translator learned that YOFC's main business is R & D and production of optical fiber preforms, optical fiber cables and related products.

　　the company's revenue from fiber optic cables accounted for 41.93 percent, fiber optic preforms and fibers accounted for 27.58 percent, other products and services accounted for 19.07 percent, and optical devices and modules accounted for 10.38 percent.

　　In the company's financial report, the translator also found that according to the Ministry of Industry and Information Technology, the total length of my country's optical fiber lines reached 59.58 million kilometers by the end of 2022, a net increase of 4.77 million kilometers from the end of 2021 and a year-on-year increase of 8.7 percent.

　　, according to data released by the British Commodity Research Institute, an independent industry research organization, the total domestic light demand in 2022 is about 0.26 billion core kilometers, an increase of more than 7% year-on-year.

　　these data are from the company's financial report, but also shows that the company is currently engaged in the business is in the industry.

　　, the translator also learned from the secretary of the board that the company has paid dividends 6 times since its listing, with a total of 1.186 billion yuan in cash.

　　and distributed six dividends to shareholders between 2018 and 2022, with dividends accounting for an average of 30% of net profit. This ratio is very high, indicating that the company is very responsible to shareholders.

　　the above is an introduction to the basic information of this enterprise, let's analyze the company's net profit performance.

　　Performance

　　The following information and financial data are derived from the company's fourth quarter 2022 report and do not contain any personal opinions.

　　the fourth quarter of 2021, the company's net profit was only 0.709 billion yuan. By the fourth quarter of 2022, the company's net profit reached 1.167 billion billion yuan, up 65% year-on-year.

　　, the company's current net profit ranks 7th among the 140 listed companies in the stock communication equipment concept sector. This ranking is very high, indicating that its scale is relatively large.

　　've seen the company's net profit performance above, let's analyze the company's cash flow. The indicator of net cash flow from operating activities is a measure of an enterprise's cash income and expenditure, also known as the litmus test of net profit.

　　the fourth quarter of 2022, although the company's net profit was 1.167 billion yuan, the actual net cash received by the company due to operating activities during the same period was as high as 1.595 billion yuan, a significant increase of 203 percent year-on-year.

　　is higher than the net profit and has more than doubled year-on-year, which shows that the company's current cash flow is very abundant, and the money in its account has also increased, which is very beneficial to the production and operation of the enterprise.

　　through the above analysis, we know that in the fourth quarter of 2022, the size of the enterprise is very large, cash flow is also very abundant.

　　Reasons for the increase in net profit

　　below to enter the most important part of this article, in this link the translator will use DuPont theory to analyze the company's net profit growth of the main reasons, I hope you can read carefully.

　　After analyzing the main financial data, the translator found that in the fourth quarter of 2022, the main reason for the increase in the company's net profit was the expansion of the profit margin of optical fiber products and the acceleration of the sales of optical fiber equipment.

　　the fourth quarter of 2021, the company can only earn back a gross profit of 19.63 yuan from the sale of 100 yuan of fiber optic products, with a gross profit margin of 19.63.

　　, by the fourth quarter of 2022, the company also sold 100 yuan of optical fiber products but earned back 23.45 yuan of gross profit, with a gross profit margin of 23.45 percent, up 9 percent from a year earlier.

　　the company's current sales gross profit margin, that is, the profit margin of optical fiber products, ranks 81st among the 140 listed companies in the stock communication equipment concept sector. This ranking is relatively low, indicating that the profit margin of its products is relatively small.

　　I have seen the profit margin of this company's optical fiber products above, let's analyze the sales speed of the company's optical fiber equipment.

　　fiber optic equipment is measured using the company's inventory turnover days.

　　the fourth quarter of 2021, it will take another 120 days for the company to sell a batch of manufactured fiber optic equipment inventory. Now it only takes 101 days, and sales have accelerated by 16%.

　　inventory turnover indicates that the fiber optic products produced by the company are currently very popular, which has increased the company's operating income and increased net profit.

　　To sum up, in 2022, due to the expansion of the profit margin of the company's optical fiber equipment and the acceleration of the sales of optical fiber products, the company's net profit increased in the fourth quarter.

　　deficiencies

　　, because the translator does not write articles to recommend stocks, at the end of this link, we will analyze the current problems of the enterprise to give you a risk warning.

　　found that the company's biggest problem in the fourth quarter of 2022 was that its short-term solvency was not very strong.

　　the fourth quarter of 2021, the company's short-term solvency, or current ratio, was 1.88. This means that if the company has short-term liabilities of $100, it should have current assets of $188 as protection.

　　if anything happens, management will not be able to repay short-term debt even if it liquifies all its liquid assets. By the fourth quarter of 2022, the company's current ratio reached 1.91, up 2% year-on-year.

　　because in current assets such as inventory and accounts receivable are difficult to realize in a short period of time, the industry average of the current ratio is 2.

　　, even though the company's current ratio rose in the fourth quarter of last year, it was still below the industry average, which also shows that the company's short-term solvency is slightly weaker.

　　short-term solvency is not strong will affect a company's future cash flow, and even reduce the enterprise's financial leverage, serious words also have the risk of capital chain break, these are very unfavorable to its production and operation, but also need our attention.

　　if the fundamentals of a listed company are divided into five levels: A, B, C, D and E from high to low, the translator personally thinks that the company can maintain the level of B.

　　Note: Stocks don't necessarily go up for companies with good fundamentals. But those stocks that can continue to rise, the company's fundamentals must be excellent.

　　and this article neither recommends the stock of Changfei Fiber, nor does it say how good Changfei Fiber is, but refines and translates the company's financial results.