\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 25 Boe Technology Group Co.Ltd(000725) )
Core view
In 21 years, the revenue increased by 61.8% year-on-year, and the net profit attributable to the parent company increased by 413.0% year-on-year. In 21 years, the company's revenue was 219310 billion yuan (YoY: 61.8%), and the net profit attributable to the parent company was 25.831 billion yuan (YoY: 413.0%); Among them, 4q21 has a revenue of 56.031 billion yuan (YoY: 65.5%, QoQ: 0.1%), and a net profit attributable to the parent company of 5.816 billion yuan (YoY: 127.2%, QoQ: - 19.8%). The high performance growth is due to: 1) the LCD industry continued its high boom in the first half of the year. Although the high LCD price fell in the second half of the year, the company actively suppressed price fluctuations by adjusting its product portfolio; 2) The company's OLED shipments increased rapidly, and the monthly shipments exceeded ten million for the first time in December.
The gross profit margin of 4q21 increased by 9.16pct to 28.87% year-on-year in 21 years, and the gross profit margin of 4q21 decreased. The LCD industry continued a high boom in the first half of the year, and the company's gross profit margin further increased from 28.16% of 4q20 to 33.96% / 33.55% of 2q21 and 3q21. With the decline of LCD price in the second half of the year, the gross profit margin of 4q21 decreased to 19.63%. According to omdia, the price of 32 / 43 / 65 inch LCD TV panel in March 22 has been 56% / 50% / 40% higher than that in July 21, and has approached the cash cost level. We think there is little room for LCD price to continue to adjust downward. As the expansion of LCD production comes to an end, we are optimistic that the industry will shift from the supply side to the demand side. The company is expected to achieve "constant strength of the strong" by virtue of its scale, technology and product advantages.
Technology driven, stable operation and quality improvement, and rapid growth of innovation business income. In terms of business, the revenue of display devices increased by 64.3% year-on-year to 202219 billion yuan in 21 years, the sales area increased by 37% year-on-year, the gross profit margin increased by 9.76pct to 26.36% year-on-year, and the sales market share of mainstream LCD products such as smart phones, tablets, laptops, monitors and TVs ranked first in the world. In addition, in the past 21 years, the innovative business revenue of the Internet of things was 28.379 billion yuan (YoY: 48.0%), the revenue of intelligent medical workers was 1.847 billion yuan (YoY: 25.8%), the revenue of mled was 452 million yuan, and the revenue of sensors and solutions was 216 million yuan (YoY: 80.4%).
The company continued to make efforts in the field of OLED, with a year-on-year increase of nearly 60% in shipments in 21 years. According to Qunzhi consulting data, the company shipped about 60 million OLEDs in 21 years, with a year-on-year increase of nearly 60%, ranking the second in the world. In terms of production capacity, the operation quality of AMOLED production lines in Chengdu and Mianyang has been steadily improved, and Chongqing AMOLED production line has successfully achieved mass production and delivery. In terms of customers, the company has continuously supplied screens based on f-oled high-end flexible display technology for folding mobile phones and laptops of global first-line brands such as glory, oppo and ASUS; In addition, according to cinno, the company's market share in iphoneoled will be close to 20% in 22 years, and the shipment volume will increase 2-3 times year-on-year. We are optimistic that the company's OLED business will turn losses into profits and become a new profit growth point.
Investment suggestion: with the cyclical weakening of the industry, we are optimistic that the profit stability of the company's LCD business will be gradually strengthened, and the OLED business is expected to become a new growth point of the company's performance. We estimate that the company's net profit attributable to the parent company from 22 to 24 years will be 22.2/25/28 billion yuan (YoY: - 14.2% / 12.8% / 11.9%). Referring to the PE valuation of 9.58 times the consistent expected average value of the comparable company wind in 2022, we give the company 9.0-9.5 times the expected PE in 2022, with the corresponding target price of 5.85-6.18 yuan, maintaining the "buy" rating.
Risk tip: the panel price fluctuates, the demand is less than expected, and the release of the company's production capacity is less than expected.
