Ledman Optoelectronic Co.Ltd(300162) (300162)
Small spacing shows the leading enterprise, investment summary, and the strongest king of cob packaging. Ledman Optoelectronic Co.Ltd(300162) is a leading LED manufacturing enterprise in China, with an integrated industrial layout from packaging to application. Its main products include LED super large screen display, ledhub smart conference system, household ledplay Lehman giant screen and led smart lighting. Thanks to the high-quality R & D team, the company launched cob small and micro spacing LED display panel in 2017, becoming the first listed enterprise in the industry to master the production technology of cob small and micro spacing LED display panel. The company has been deeply engaged in cob packaging for many years. In the first half of 2021, the market share of cob display products exceeded 30%, ranking first in China. In September 2021, the company issued the second phase of equity incentive plan. Based on the operating revenue of RMB 819 million in 2020, the revenue growth rate from 2021 to 2023 will not be less than 46.55%, 132.04% and 254.16%, demonstrating the company’s development confidence.
Ultra high definition display gives birth to the demand for microled, grasps the first mover advantage of cob and benefits the development of small and micro space. The pixel spacing exceeds P1 0mm, the average price of small spacing led dropped to 25000 yuan / m2, and the technical maturity continued to improve, promoting the accelerated landing of microled display applications. In 2020, the global market scale of small spacing LED display will be about US $2.7 billion, benefiting from the application expansion of small spacing display from special display to business display, home display and other 100 billion markets, and the demand rebound due to the superposition of epidemic mitigation. It is expected that the market scale of small spacing LED display will exceed US $9 billion by 2025, with CAGR of 27%. The cob technology path gradually highlights its advantages with the shrinking pixel spacing. Lehman, as the leader of cob, occupies the first mover advantage. At present, the cob penetration rate of China’s small spacing LED display market is less than 10%, which is expected to be close to 25% by 2025.
Lehman leads the wisdom of big screen and shares 100 billion market. Based on the cob packaging technology and the unique patented technology of pixel engine which can greatly improve the visual resolution and significantly reduce the cost, the company independently developed and mass produced multi specification cob8kmicroled ultra-high definition display products with a spacing of 0.6mm-1.9mm, and successively launched Lehman smart conference system ledhub, 138 inch 4K flagship ledplay Lehman giant screen and other products, The coverage from professional display market to commercial display and home display market has been completed. According to the State Administration of radio, film and television The Ministry of Industry issued the action plan for the development of UHD video industry (2019-2022) It is estimated that by 2022, the overall scale of China’s UHD video industry will exceed 4 trillion yuan, the 4K ecosystem will be basically improved, and breakthroughs will be made in the R & D and industrialization of 8K key technology products. Relying on the policy of Dongfeng, the company focuses on the development of 8K UHD industry. With the industry-leading yield of 98.49%, it is expected to quickly open the growth ceiling and achieve rapid performance growth.
Profit forecast
The first coverage is given a “buy” rating. We estimate that the net profit of the company from 2021 to 2023 will be RMB 78 million, RMB 193 million and RMB 317 million respectively, and the corresponding EPS will be RMB 0.22, RMB 0.55 and RMB 0.91 respectively. The current share price corresponds to PE values of 52.44, 21.23 and 12.90 times from 2021 to 2023 respectively. We are optimistic about the rapid penetration of cob packaging in the display field after rapid cost reduction. As the leader of cob packaging in China, the company will benefit significantly and increase its share. With the continuous optimization of cob process and cost, the company will quickly promote from professional display to commercial display and household display, further open up the growth space and realize the rapid growth of performance.
Risk statement
The growth of display screen industry, the increase of cob penetration rate and the company’s capacity expansion were lower than expected.
