\u3000\u30 Ping An Bank Co.Ltd(000001) Ping An Bank Co.Ltd(000001) 00)
Event overview
The company announced to repurchase RMB 450 million (included) – 550 million (included), and the price of the repurchased shares shall not exceed RMB 8 million / share (included)
Analysis and judgment:
The reduction of large-size panel converges in space and the industry fundamentals build the bottom
According to discien data, 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 of 32 inches is expected to be $39 in March, with a decrease of $0. Both 50 and 55 inches are expected to fall by $3. The decline of 65 and 75 inches is expected to continue the decline of $6 in the previous month, and it is expected to decrease by $5 in April. Considering the demand for panel preparation in the second quarter of China and the world, the space for the decline of large-size panels is expected to shrink, and the industry fundamentals are at the bottom stage.
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 the panel industry continues to decline. Considering the performance express data and maintaining the profit forecast, the company is expected to have a revenue of 163.53/181.89/206.27 billion yuan in 21-23 years, an EPS of 0.72/0.80/0.98 yuan in 21-23 years, corresponding to the closing price of 4.88 yuan / share on March 20, 2022, and PE of 7.11/6.37/5.22 times respectively, Continue to be optimistic about the improvement of the long-term competition pattern of the LCD display industry and the promotion of the strategic value of the industrial chain, and maintain 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.
