On the evening of January 20, the leader of semiconductor display industry Boe Technology Group Co.Ltd(000725) released a performance forecast. It is estimated that the net profit in 2021 will be 25.7 billion yuan – 26 billion yuan, with a year-on-year increase of 410% – 416%. The net profit of nearly 26 billion yuan has reached a record high since Boe Technology Group Co.Ltd(000725) was listed, mainly due to the high outlook of the industry and the breakthrough of flexible OLED business.
In contrast to the continuous good results, Boe Technology Group Co.Ltd(000725) share price continued to callback after hitting a record high in April last year, with a maximum decline of 38%. The launch of billions of Yuan repurchase program by Boe Technology Group Co.Ltd(000725) also failed to boost the share price. Netizens also have different views on whether the best performance answer in history can stimulate stock prices.
Recently, a number of leading semiconductor segments, including Naura Technology Group Co.Ltd(002371) , Hangzhou Lion Electronics Co.Ltd(605358) , have issued performance forecasts, all exceeding market expectations. Naura Technology Group Co.Ltd(002371) it is estimated that the net profit in 2021 will be 940 million yuan to 1.208 billion yuan, an increase of 75% to 125% at the same time, Hangzhou Lion Electronics Co.Ltd(605358) it is estimated that the net profit will be 590 million yuan to 640 million yuan, an increase of 192.14 to 216.9% at the same time. The stock prices of the two companies have shown some performance recently.
deduct the advance increase of non net profit by 8 times
According to this performance forecast, Boe Technology Group Co.Ltd(000725) is expected to have an annual operating revenue of 215 billion to 220 billion yuan and a net profit of 25.7 billion to 26 billion yuan in 2021, with a year-on-year increase of 410% – 416%. The growth rate of net profit after deducting non recurring profits and losses is higher. In 2021, the net profit after deducting non recurring profits and losses is expected to reach 23.794 billion to 24.094 billion yuan, an increase of 791% – 802% over the same period of last year.
Historically, whether before or after deduction, BOE’s net profit in 2021 has reached a record high since its listing in 2001, and the last high point of net profit was RMB 7.568 billion in 2017.
For the reasons for the substantial increase in performance, the company said that first, the semiconductor display industry continued the longest business cycle in the history in the first half of 2021; Since the third quarter, with the adjustment of the demand side, there has been a structural correction in the product price of the industry. However, the overall prosperity of the industry throughout the year is relatively higher than that of last year, and the company has benefited as an industry leader.
Second, in terms of LCD, in the face of product price structural adjustment, the company actively adjusted its product portfolio and maintained a good profit level relying on good product and customer structure and leading technical and product strength. Third, in terms of flexible OLEDs, we gave full play to the advantages of technology and production capacity, built a broad and close customer cooperation relationship, rapidly increased the shipment, made important breakthroughs in business development, and exceeded ten million for the first time in December 2021.
However, it is worth noting that Boe Technology Group Co.Ltd(000725) in the first three quarters of last year, the net profit attributable to the parent was 20.015 billion yuan, a year-on-year increase of 708.43%, and the net profit attributable to the parent after deduction was 18.598 billion yuan, a year-on-year increase of nearly 20 times. The net profit attributable to the parent company in the third quarter was 7.253 billion yuan, that is, the net profit in the fourth quarter was about 6 billion yuan, down from the third quarter.
share price continues to callback
the company has repurchased 2.4 billion
For this performance, many netizens believe that it exceeded expectations, “deduction is not an increase of seven or eight times, there is no problem” and “the performance is a little higher than expected”.
But most people don’t seem to have much confidence in whether this performance can stimulate stock prices. Some netizens said that ” Boe Technology Group Co.Ltd(000725) ‘s performance has nothing to do with the stock price”, “cyclical stocks such as BOE are very strange. The higher the performance, the lower the stock price”. Some netizens compared the stock price of Northking Information Technology Co.Ltd(002987) and said they were “helpless”. Since the beginning of 2022, the price of Northking Information Technology Co.Ltd(002987) has risen from 30 yuan to 47 yuan, an increase of nearly 60%.
At the end of April last year, Boe Technology Group Co.Ltd(000725) after a rise of nearly one and a half years, the share price (former resumption of rights) increased from 2.37 yuan to 7.55 yuan, an increase of 218%, but since then it has fallen into adjustment for half a year. It touched 4.73 yuan at the end of October, with a correction of 38%. It has remained in a narrow range around 5 yuan for nearly three months.
When the share price fell endlessly, the company officially implemented the plan of repurchase of some public shares from September 2, 2021. The total amount of repurchase funds shall not exceed RMB 3 billion, and the repurchase price shall not be higher than RMB 8.5/share for one year.
As of December 31, 2021, the company has repurchased the company’s shares by means of centralized bidding through the special securities repurchase account. The cumulative number of A-Shares repurchased is 460 million, accounting for about 1.2275% of the company’s A-Shares and 1.1976% of the company’s total share capital. The highest transaction price of the repurchase is 5.96 yuan / share, the lowest transaction price is 4.89 yuan / share, and the total amount paid has reached 2.428 billion yuan, 80% of the repurchase plan was completed. But from the effect point of view, the boost to the stock price does not seem obvious.
Naura Technology Group Co.Ltd(002371) and Hangzhou Lion Electronics Co.Ltd(605358) also exceeded expectations
The other two leading segments of the semiconductor industry chain that recently released the performance forecast also exceeded expectations.
Semiconductor equipment leader Naura Technology Group Co.Ltd(002371) announced on the evening of January 16 that the estimated operating revenue of the company in 2021 is 8.478 billion yuan to 10.901 billion yuan, an increase of 40% to 80% year-on-year; The company expects the net profit attributable to the shareholders of the listed company to be RMB 940 million to RMB 1.208 billion, with a year-on-year increase of 75% to 125%; Non net profit deduction is expected to be 690 million yuan to 887 million yuan, with a year-on-year increase of 250% to 350%.
For this performance increase, Naura Technology Group Co.Ltd(002371) said that in 2021, there was strong demand from downstream customers of the company’s main business, and the business of semiconductor equipment and electronic components continued to grow, resulting in year-on-year growth in the company’s operating revenue and net profit attributable to shareholders of listed companies.
After the release of the performance forecast, securities companies have raised their profit forecast and target price. As Huaxi Securities Co.Ltd(002926) said, considering that the company’s products have entered a period of accelerated development, the company’s revenue forecasts of 8.816 billion yuan, 11.98 billion yuan and 16.1 billion yuan from 2021 to 2023 have been raised to 9.316 billion yuan, 12.88 billion yuan and 16.8 billion yuan, and the eps1 of 2021 to 2023 has been raised The forecasts of 84 yuan, 2.4 yuan and 3.16 yuan reach 1.89 yuan, 2.54 yuan and 3.21 yuan, corresponding to the closing price of 288.71 yuan / share on January 16, 2022, and the PE is 152.9/113.5/90 times respectively, maintaining the “buy” rating.
The share price of Naura Technology Group Co.Ltd(002371) rose by more than 6% the next day.
On January 17, silicon chip leader Hangzhou Lion Electronics Co.Ltd(605358) released a performance forecast for 2021. The company expects to realize a net profit attributable to shareholders of listed companies of RMB 590 million to RMB 640 million in 2021, with a year-on-year increase of 192.14 to 216.9%. The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 547 million yuan to 597 million yuan, with a year-on-year increase of 264.2% to 297.49%.
The company said that during the reporting period, benefiting from the national policy support, the acceleration of domestic substitution of semiconductors and the continuous increase of downstream demand driven by the rapid development of clean energy, new energy vehicles and intelligent economy, the company’s industry and market scene continued to improve, the market demand was strong, the company’s sales orders were full, the production capacity was continuously released, and the production and sales of main products increased significantly; At the same time, by optimizing the product structure, strengthening cost and expense control and timely increasing the product price, the company’s revenue increased significantly year-on-year and its profitability improved significantly.
After the release of the performance forecast, Hangzhou Lion Electronics Co.Ltd(605358) has also increased by more than 5%, while it has increased by nearly 20% since the beginning of the year.
