Written by | Axin, Pencil News

Recently, a hidden gem from Jinan, Shandong, has emerged: Hepu Weishi, poised for an IPO on the Beijing Stock Exchange.

Hepu Weishi's core business revolves around optoelectronic products, including optoelectronic equipment like turrets, pods, and shipborne turrets. Optoelectronic turrets, for instance, aid soldiers and military equipment in swiftly locating and tracking enemies. What market opportunities lie within this niche sector?

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Based in Jinan, Shandong, Hepu Weishi was founded in 2011, offering optoelectronic modules, equipment, and related accessories.

1. Optoelectronic Modules: These serve as the "eyes" and "information converters" of various devices. 2. Optoelectronic Equipment: This encompasses optoelectronic turrets, pods, and shipborne turrets. In military applications, turrets aid in enemy detection and tracking; pods, mounted on drones, helicopters, and other aircraft, function as "intelligent observation posts"; and shipborne turrets serve as the ship's "lookouts". 3. Related Accessories: These ensure the smooth operation and performance of optoelectronic modules and equipment. Optoelectronic modules are the company's flagship products, contributing significantly to its revenue. Hepu Weishi's primary clientele includes industrial manufacturing enterprises, which it supplies with efficient optoelectronic transmission modules for automated production lines; security system integrators, which receive high-performance optoelectronic surveillance equipment; and communication operators, which acquire optical communication modules for 5G base stations and data centers.

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The optoelectronic industry has evolved through multiple stages, from basic research and development to widespread application. Initially, optoelectronic technology was primarily utilized in scientific research and military fields. As technology matured, it gradually expanded into the civilian market. Recently, emerging technologies such as 5G, the Internet of Things, smart devices, autonomous driving, and renewable energy applications have fueled new growth in this sector.

Currently, the global optoelectronic market is valued at hundreds of billions of yuan, with an average annual growth rate exceeding 10%. There are three primary applications in the optoelectronic market. First, the communication field, where optical communication, with its high speed, large capacity, and long-distance transmission capabilities, serves as the backbone of modern communication networks. According to CCID predictions, China's optical communication market will reach 175 billion yuan by 2025, driving the optoelectronic industry's development. Second, the energy field, represented by solar photovoltaic power generation, which has thrived amidst global energy transformations. In 2023, China's photovoltaic output value reached 1.75 trillion yuan, with installed capacity ranking first globally for eight consecutive years. Optoelectronic technology is pivotal for ensuring energy security and achieving sustainable development. Third, the display field, where technologies like liquid crystal displays (LCDs) and organic light-emitting diodes (OLEDs) are ubiquitous in consumer electronics such as mobile phones, computers, televisions, and tablets. Demand for optoelectronic materials and devices in the display field continues to grow steadily.

In 2022 and 2023, Hepu Weishi's operating revenues were 243 million yuan and 315 million yuan, respectively, with net profits of 26.8825 million yuan and 37.4381 million yuan. In the first half of 2024, operating revenue reached 126 million yuan, a 16.58% increase over the same period last year, while net profit was 12.2766 million yuan, a 42.33% increase over the previous year. Looking ahead, the optoelectronic industry will trend towards intelligence, integration, and efficiency. Emerging technologies like quantum communication and photonic chips are expected to introduce new growth opportunities.

The content of this article is for reference only and does not constitute investment advice.