\u3000\u3000 Landai Technology Group Corp.Ltd(002765) (002765)
Event: the company released the performance forecast for 2021. It is expected to realize the net profit attributable to the parent company of RMB 200-230 million in 2021, with a year-on-year increase of 3750.9% – 4328.5%; It is expected to realize the deduction of non net profit of 130-150 million yuan, with a year-on-year increase of 533.5-600.1%; During the reporting period, the impact of non recurring profit and loss on net profit is expected to be 70 million yuan to 80 million yuan. The performance is basically in line with expectations.
The two major businesses of power + touch are large-scale, with high performance growth in 2021: the touch display business segment benefited from the growth of consumer electronics and automotive electronics demand, strong market demand, full orders of taiguan technology, a subsidiary of the company, and the continuous expansion of the production capacity and business scale of touch display modules in Chongqing, a subsidiary of the company, driving the substantial growth of the company’s touch display business performance; In the power transmission business sector, the company achieved remarkable results in customer structure adjustment and product structure transformation and upgrading, the scale of power transmission business continued to expand, and the performance increased significantly year-on-year. The two business segments drive the high growth of the company’s performance. In 2021, the company expects the net profit attributable to the parent company to be RMB 200-230 million, a year-on-year increase of + 3750.9% – + 4328.5%.
Q4 performance turned from loss to profit last year: according to the performance forecast, the company expects to realize a net profit attributable to the parent company of 23-53 million yuan in the single quarter of 2021q4, an increase of 45-75 million yuan compared with – 22 million yuan in the same period of last year; In the single quarter of 2021q4, it is expected to realize a net profit of 15-35 million yuan, an increase of 47-67 million yuan compared with -32 million yuan in the same period of last year. Both the net profit attributable to the parent and the net profit deducted from non parent turn into profit compared with last year.
The implementation of the restricted stock incentive plan ensures the performance growth. According to the announcement of the company, the company has completed the first grant registration of the restricted stock incentive plan for core managers, core technology and business personnel, and granted 7.45 million restricted shares for the first time, accounting for about 1.3% of the total share capital of the company, with the grant price of 3.46 yuan / share. The implementation of the restricted stock incentive plan will enhance the enthusiasm of the company’s core managers and core technicians, which is conducive to the continued good growth of performance.
Investment suggestion: according to the company’s performance forecast and considering the impact of equity incentive expenses, we adjust the company’s profit forecast. We predict that the net profit attributable to the parent company from 2021 to 2023 will be 220 million yuan, 300 million yuan and 370 million yuan respectively, and the return on net assets will be 11.2%, 13.0% and 13.9% respectively. Maintain the investment rating of “overweight-a”.
Risk tip: the development of on-board touch business is not as expected; The matching of new products in power transmission business is not as expected; Risk of goodwill accrual.
