\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 25 Boe Technology Group Co.Ltd(000725) )
Recently, the company released the first quarterly report of 2022: in the first quarter of 2022, the company achieved an operating revenue of 50.476 billion yuan, a year-on-year increase of 0.40%, and a net profit attributable to the parent company of 4.389 billion yuan, a year-on-year decrease of 16.57%.
Key points supporting rating
The industry boom has declined, and the leading profit toughness has emerged. 1q22's revenue increased by 0.40% year-on-year, and the net profit attributable to the parent decreased by 16.57% year-on-year. The decline in performance was mainly due to the decline in panel price, which had a certain impact on the company's profitability. In terms of gross profit margin, Q1 was 21.38%, a year-on-year decrease of 6.75pct and a month on month increase of 1.75pct. In terms of expense ratio, the sales expense ratio was 2.55%, with a year-on-year increase of 0.58pct; The management fee rate was 3.01%, with a year-on-year decrease of 0.75pct; The financial expense ratio was 0.967%, a year-on-year decrease of 0.51pct.
The decline in panel prices narrowed and is expected to improve in the second half of the year. At the industry level, since the second half of 2021, after experiencing an ultra long business cycle, the semiconductor display industry has experienced structural adjustment in prices, and the prices of TV and it LCD products have fallen to varying degrees. However, from the current situation, the decline in TV panel prices has narrowed significantly. As a leader in the industry, the company has obvious advantages in customers, products and technology. It is expected to maintain good profitability in the weak market by continuously optimizing the product and customer structure, improving the operation efficiency of the production line, increasing technological innovation, making efforts to innovate and transform the business of the Internet of things.
The shipment volume of flexible AMOLED continues to grow and the operation continues to improve. In terms of flexible AMOLED business, the operation quality of the 6th generation AMOLED production line in Chengdu and Mianyang has been steadily improved, and the 6th generation AMOLED production line in Chongqing has also achieved mass production and delivery. In 2021, the shipment volume of flexible AMOLED in the whole year was nearly 60 million, accounting for about 17% of the global market, ranking first in China and second in the world. Among them, the monthly shipment volume exceeded 10 million for the first time in December, reaching a new milestone in business development. It is estimated that the company's flexible AMOLED shipment target in 2022 is more than 100 million pieces. With the increase of shipment, the operation of flexible AMOLED business will continue to improve.
Valuation
Considering the decline of panel price, adjust the company's EPS for 22-24 years to 0.515/0.597/0.731 yuan, and the PE corresponding to the current share price is 7 / 6 / 5 times respectively, maintaining the "buy" rating.
Main risks of rating
The prosperity of the industry continued to decline; AMOLED's profit improvement is less than expected; Downstream demand was lower than expected.
