Focus Lightings Tech Co.Ltd(300708) (300708)
The mini / micro LED market will start explosive growth in 2022. According to arizton's prediction, the global Mini / micro LED market will exceed US $1 billion in 2022 and maintain a high growth rate of more than 145% every year from 2021 to 2024. Mini / micro LED is regarded as the mainstream and development trend of LED display technology in the future. It is a new product of LED display technology upgrading after LED indoor and outdoor display screens and small LED spacing. It has the advantages of "thin film, miniaturization and array". Mini / micro led further reduces the size of LED chip and continues to expand new applications in the display field.
Samsung and apple enabled Mini led to accelerate the application of TV, laptop, tablet and other fields. In terms of terminal application scenarios, the application field of mini LED can be divided into two scenarios: direct display and backlight. In March 2021, Samsung released Neo qled series TV equipped with mini led. On April 21, Apple released a new 12.9-inch iPad Pro equipped with miniled backlight display technology for the first time. Since then, Huawei, TCL, BOE and other manufacturers have successively announced that they will launch miniled related products.
The company has been deeply engaged in the LED field for many years, and the mini LED technology reserve is perfect. At this stage, the mini LED industry shows tight development, and the application end Scheme continues to be promoted. The company has been deeply engaged in the LED field for many years, and the mini LED technology reserve is perfect. The company actively cooperates with the packaging customers of important mainstream backlight display or backlight module manufacturers. A variety of products have passed the customer's verification and can start mass production at any time.
The fixed increase project actively expands production, and the mini LED production capacity is about to be released. In June 2021, the company successfully raised 702 million yuan through fixed increase, and plans to invest in the production expansion project of high light efficiency LED chips. After reaching the production capacity, the production capacity of blue-green LED chips will be increased by 9.5 million pieces / year, including 8.28 million pieces / year of blue-green LED chips and 1.2 million pieces / year of mini LED chips. Up to now, the company has an existing production capacity of 1.6 million pieces / month. It is expected that the production capacity will be increased to 1.8 million pieces / month by the end of the year. The new production capacity mainly includes high-end LED chip products such as mini / micro led, vehicle lighting and high power. Mini led capacity is about to be released.
Profit forecast: we expect the company's net profit attributable to the parent company in 2021, 2022 and 2023 to be RMB 184 / 271 / 352 million respectively, corresponding to 28 / 19 / 14 times of the share price PE on December 9, maintaining the "buy" rating.
Risk tip: industry competition intensifies, capacity release is less than expected, and downstream demand is less than expected
