\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 25 Boe Technology Group Co.Ltd(000725) )
Event: the company’s operating revenue in 2021 was 219.3 billion yuan, an increase of 62%; The net profit attributable to the parent company was 25.8 billion yuan, an increase of 413%; Roe reached 23.8%, with a year-on-year increase of 18.7pct; The net cash flow was 62.3 billion yuan, a year-on-year increase of 59%. The gross profit of the company is RMB 20.26 billion and the net profit rate is RMB 20.28 billion. The dividend is nearly 8 billion, with a dividend rate of about 5%.
The profitability and management efficiency of LCD production line have been continuously improved, and the volume of OLED has broken through. The revenue of display devices was 202.2 billion yuan, a year-on-year increase of 64%; The gross profit margin was 26%, with a year-on-year increase of 10 PCT. Product sales increased by 9% and sales area increased by 37%. The shipment volume of flexible OLEDs has increased rapidly, reaching more than 10 million a month by the end of 2021. Chongqing B8 (8.5), with an operating revenue of 33.8 billion yuan, a net profit of 10.5 billion yuan and a net interest rate of 31%. Fuzhou B10 (8.5), with an operating revenue of 18.2 billion yuan, a net profit of 4.6 billion yuan and a net interest rate of 25%. Hefei B9 (10.5), with an operating revenue of 19.9 billion yuan, a net profit of 3.3 billion yuan and a net interest rate of 17%. Beijing B4 (8.5), with an operating revenue of 33.7 billion yuan, a net profit of 3.3 billion yuan and a net interest rate of 10%. In 2021, compared with 2021h1, the profit margin of Chongqing B8 with more small size and Beijing B4 with more it modules continued to improve, while Fuzhou B10 and Hefei B9 with more TV decreased relatively, reflecting the decline of 2021h2tv panel price.
LCD price cycle is at the bottom, and the industry is expected to gradually pick up. In the past two months, the price of TV panel has gradually bottomed out. The decline of 32 inches has stopped, and the decline of 43 ~ 55 inches has significantly converged. The overall price of TV panel is also close to the historical bottom range. The price level of it panel also gradually drops, and the IT competition pattern is good, and the price volatility is relatively small. The overall price of 22q2 panel is expected to gradually grind to the bottom, and the subsequent peak demand season is expected to pick up. Samsung’s surplus capacity is expected to accelerate the exit. DSCC expects that the average growth rate of new capacity in 22-24 years is only about 5-7%, and the supply pressure is not large.
Flexible OLED technology is leading, fast and large-scale. The company’s OLED monthly shipments exceed 10 million. According to Qunzhi consulting, the annual shipments in 2021 are about 60 million, accounting for the second largest market share in the world. The company has imported large quantities of OLEDs into world-renowned consumer electronics customers, and has provided folding laptops, folding mobile phones and other screens on a large scale.
1 + 4 + n is developing in an all-round way, mled technology is leading, and we hope to increase the volume quickly. The business revenue of Internet of things was 28.4 billion yuan, a year-on-year increase of 48%. The revenue of sensor business was 200 million yuan, a year-on-year increase of 80%. Mled business revenue of 450 million yuan, launched 55 inch miniled backlight products, miniled backlight laptop and VR to achieve brand customer breakthrough. The income of smart medical workers was 1.85 billion yuan, a year-on-year increase of 21%.
Continue to strengthen R & D investment and improve the company’s product technical capacity. The company has 19700 R & D personnel and 6035 masters; R & D investment was 12.4 billion yuan, an increase of 32%; The R & D cost was 10.7 billion yuan, an increase of 40%. For six consecutive years, the company has ranked among the top ten international patent applications in the world, with more than 9000 new patents every year, and continues to take the lead in technological innovation such as 8K display, bdcell, miniled, ltpooled and foldable OLED.
BOE’s leading position in panel is strengthened, and flexible AMOLED is gradually increasing. BOE’s position in the panel industry has remained unchanged for a long time. AMOLED is expected to gradually contribute to profits, with obvious competitive advantages. It has an increasing voice in the global display industry. With the end of CAPEX and the end of industry competition, the company’s profitability is expected to be repaired and FCF will be greatly improved. We expect the company’s revenue to be 220406/260.79/286087 billion yuan in 2022 / 2023 / 2024; The net profit attributable to the parent company was RMB 210.30/260.33/31.818 billion, a year-on-year increase of – 18.6% / + 23.8% / + 22.2%; Maintain the “buy” rating.
Risk tip: downstream demand is less than expected
