\u3000\u3000 Boe Technology Group Co.Ltd(000725) (000725)
Event: the company released the performance forecast for 2021. The net profit attributable to the shareholders of the listed company in 2021 is expected to be RMB 25.7-2.6 million, a year-on-year increase of 410% – 416%; The net profit after deducting non recurring profits and losses is expected to be 23794-24094 million yuan, with a year-on-year increase of 791% – 802%; The operating revenue is expected to be RMB 21.5 million-22 million, with a year-on-year increase of 59% – 62%.
The business cycle of semiconductor display industry is long, and the company gives full play to the leading advantages of the industry: in 2021, the business cycle of panel industry is long, and the application scenarios include TV, mobile phone, vehicle screen display, laptop, display, etc. Under the background of the epidemic, the demand for applications such as telecommuting, telemedicine, online education and online entertainment has an obvious growth trend; On the other hand, with the development of new display technologies such as LCD, olcd and small spacing led. In addition to the trend of large screen, OLED / mini LED / micro LED technology innovation drives the demand for panel replacement. According to the company’s semi annual report, in the first half of 2021, the sales volume of display devices increased by 18% year-on-year and the sales area increased by 45% year-on-year. The market share of LCD smart phones, tablet computers, laptops, monitors and televisions continues to rank first in the world; The sales area of innovative application devices increased by 66% year-on-year, of which the market share of electronic paper display devices continued to remain above 60%; The sales volume of complete 3C products increased by 38% year-on-year. Benefiting from the prosperity of the industry, the company ushered in a good opportunity for performance development.
Relying on its advantages in technology, production capacity, customers and other aspects, the company has made breakthroughs in shipments: the company has mastered a number of core technologies. In the first half of 2021, the company applied for more than 4500 patents, including more than 90% invention patents and more than 33% overseas patents; Patent applications in OLED, sensing, artificial intelligence, big data and other fields account for more than 50%. In terms of LCD, facing the structural adjustment of product price, the company actively adjusted its product portfolio and still maintained a good profit level. In terms of flexible OLED, the company made breakthroughs in technological innovation. The flexible OLED sliding coil product won the SID best technology demonstration award, and the shipment increased rapidly. According to the performance forecast, the monthly shipment exceeded 10 million for the first time in December 2021. In addition, the company actively promotes the level of product centralization and scale to improve the company’s capacity advantage. According to the company’s semi annual report, Chongqing’s 8th.5 generation LCD production line continues to miniaturize products and further improve the production level; The number of substrates invested in Beijing’s 8th.5th generation LCD production line, Fuzhou’s 8th.5th generation LCD production line, Nanjing’s 8th.5th generation LCD production line, Chengdu’s 8th.6th generation LCD production line, Hefei’s 10th.5th generation LCD production line and Wuhan’s 10th.5th generation LCD production line reached a new high in a single month.
Actively arrange production expansion projects and enhance profitability: according to the company’s announcement, in August 2021, the company raised 20332.6 million yuan, of which 6500 million yuan was used to acquire 24.06% equity of Wuhan BOE optoelectronics to optimize consolidated profits; 46.5 million yuan is used to increase capital and build BOE Chongqing 6th generation AMOLED production line project; 340 million yuan will be used for the construction of 12 inch silicon-based OLED project and the development of new display technology. Moreover, at the end of August, the company, together with Qingdao Haikong and United Dongchuang, invested 8.17 billion yuan to build BOE Internet of things mobile display port device production base project, with an annual design capacity of 151 million display modules of various sizes. In October, the company announced that it planned to invest in the vehicle display base project in Chengdu, with an annual output of about 14.4 million vehicle display screens after reaching the production capacity, so as to meet the market demand for new display screens such as vehicle entertainment and navigation. While consolidating the development of the main panel business, the company has expanded the chain business such as modules and systems, and its comprehensive strength has been continuously improved.
Investment suggestion: we estimate that the company’s revenue from 2021 to 2023 will be 215.949 billion yuan, 246.009 billion yuan and 270.61 billion yuan respectively, and the net profit will be 25.89 billion yuan, 27.305 billion yuan and 30.403 billion yuan respectively, maintaining the “Buy-A” investment rating.
Risk tip: the shipment of medium and large-size panels is less than expected; Slow exit of overseas manufacturers; Downstream demand is lower than expected
