\u3000\u30 Ping An Bank Co.Ltd(000001) Ping An Bank Co.Ltd(000001) 00)
Event overview the company issued a performance express. In 2021, the operating revenue was 163528 billion yuan, a year-on-year increase of 112.8%; The net profit attributable to the parent company is expected to reach 10.062 billion yuan, an increase of 129.3% over the same period of last year.
Analysis and judgment:
The company’s single quarter profit pressure is large, and under the influence of multiple factors such as geographical conflict, the 22q1 panel price still continues to fall
According to the performance forecast announcement, in 2021, the operating revenue of the company’s semiconductor display business increased by more than 80% year-on-year, and the net profit increased by about 340% year-on-year. Among them, the operating revenue of large-scale businesses increased by more than 90% year-on-year, and the net profit increased by more than 300% year-on-year. T1, T2 and T6 maintained full sales and full production, T7 was mass produced as planned, T10 production line and products accelerated integration, and the large-scale shipment area increased by 36% year-on-year; Affected by the logistics response and demand adjustment in some regions, the prices of main products continued to callback for two quarters, but the average price in the reporting period was still significantly higher than that in the same period of last year.
The operating income of small and medium-sized enterprises has increased by more than 30% year-on-year, and the operating efficiency is gradually improving. T3 continuously optimize product and customer structure and improve profitability; The production capacity construction of phase II and III of T4 flexible OLED production line has been steadily promoted, and the product technology and customer structure have been improved; T9 of high value-added it display screen and T5 of vehicle mounted, AR / VR and other products will be built as planned.
In 2021, the company’s business shipment area, average price of main products and product profit increased significantly year-on-year. In the future, the company will continue to promote the business strategy of large-scale high-end, medium-sized accelerated breakthrough and small-scale focus on differentiation, continue to optimize the business and customer structure and achieve sustainable growth.
According to the latest data of discien in March, under the influence of multiple factors such as the continuous impact of recent geopolitical conflicts, the overall market demand is divided. The demand for 55 inch and above products is relatively weak, and the demand for 32 inch products has rebounded. In terms of price, the closing price in February was $39 for 32 inches, a decrease of $1, both 50 and 55 inches fell by $3, and 65 and 75 inches continued the decline of $6 last month. Considering the partial supply reduction strategy, it is expected that the reduction space of large-scale panel is expected to converge in the future.
Semiconductor photovoltaic and materials business has become the second growth engine of the company
Tianjin Zhonghuan Semiconductor Co.Ltd(002129) was consolidated in the fourth quarter of 2020, becoming a new driver of the company’s performance growth in 2021. According to the performance express of Tianjin Zhonghuan Semiconductor Co.Ltd(002129) 2021, the revenue reached 41.025 billion yuan, a year-on-year increase of 115.3%; The net profit attributable to the parent company was 4.020 billion yuan, a year-on-year increase of 269.1%. The production capacity of photovoltaic materials has increased rapidly, especially the technical, cost and ecological advantages of G12 products; The 8-12 inch product structure of semiconductor materials business continued to upgrade, and central semiconductor exceeded the performance doubling plan.
Investment advice
Under the influence of uncertainties such as overseas epidemic, geographical conflicts and shipping, the price of panel industry continues to decline. Considering the performance express data and fine-tuning the profit forecast, it is estimated that the company’s revenue in 21-23 years will be adjusted from 163.52/181.88/206.25 billion yuan to 163.53/181.89/206.27 billion yuan, and EPS in 21-23 years will be adjusted from 0.72/0.80/0.97 yuan to 0.72/0.80/0.98 yuan, Corresponding to the closing price of 5.1 yuan / share on March 10, 2022, PE was 7.11/6.37/5.22 times respectively, which continued to be optimistic about the improvement of the long-term competition pattern of the LCD display industry and the improvement of the strategic value of the industrial chain, and maintained the “buy” rating of the company.
Risk tips
Panel price instability and unpredictable risk of panel price recovery period; The rise and fall of panel price is highly related to the overall revenue and profitability of the company. In the later stage, the panel price adjustment is too large, resulting in the company’s performance falling short of expectations; Advanced display technology is rapidly commercialized, and the production capacity of LCD panel is prematurely eliminated; Systemic risks have brought about a sharp decline in Tianjin Zhonghuan Semiconductor Co.Ltd(002129) share price
