\u3000\u3000 Boe Technology Group Co.Ltd(000725) (000725)
Event:
Boe Technology Group Co.Ltd(000725) release the annual performance forecast: it is expected to achieve an operating revenue of 215-220 billion yuan in 2021, a year-on-year increase of 59% – 62%, a net profit attributable to the parent company of 25.7-26 billion yuan, a year-on-year increase of 410% – 416%, and a basic earnings per share of 0.70-0.71 yuan / share.
Key investment points:
In 2021, the performance continues to exceed expectations, and the panel leader strives for progress while maintaining stability. The company’s performance forecast is expected to achieve an operating revenue of 51.7-56.7 billion yuan in the single quarter of 2021q4, with a year-on-year increase of 53% – 67%, and a net profit attributable to the parent of 5.7-6 billion yuan, with a year-on-year increase of 122% – 134%, slightly exceeding the market expectation. The main reasons for the substantial growth of the company’s performance are as follows: first, the overall prosperity of the semiconductor display industry in 2021 was significantly higher than that of the previous year. Despite the weak demand in the second half of the year and the obvious structural correction of TV panel price, the company still made the performance grow rapidly by giving full play to the leading advantages of the industry; Second, in terms of LCD panel products, the company actively complied with market changes. In the face of industrial product price structural adjustment, relying on the advantages of products, customer structure and technology, the company actively adjusted its product portfolio. The proportion of TV panel capacity with large price decline decreased, and the proportion of it panel capacity with stable price continued to rise, stabilizing its profitability; In terms of flexible OLED, we gave full play to our advantages in technology and production capacity, increased and deepened customer cooperation, and the corresponding business achieved rapid development. In December 2021, the monthly shipment exceeded 10 million for the first time; Third, the company continues to deepen the transformation of the Internet of things, and the “1 + 4 + n” business has developed rapidly. In the future, the company will achieve long-term, stable and high-quality development through technological innovation, management innovation and digital reform. In the short term, as the leader of the panel industry, relying on its own competitive advantages, the company can make more rapid and steady adjustments in the overall industry environment, develop strengths and avoid weaknesses. In the medium and long term, the transformation and innovation of the company’s Internet of things comply with the development trend of the display industry and can grow in the future.
Release the first technology brand of China’s semiconductor display and the leader of semiconductor display technology innovation. Recently, the company released the first technology brand in China’s semiconductor display field, covering its three major technology brands in the fields of LCD, OLED and mled, continued to promote the innovation and iteration of high-quality display technology, and created a new era driven by the dual value of “technology + brand” in China’s display industry. In addition, in terms of LCD, the company launched an 8K UHD overall solution integrating 5g + AI technology, continuously promoted the application, popularization and iteration of 8K technology, and promoted the rebirth of LCD industry; In terms of OLEDs, Chongqing OLED production line was officially mass produced. According to qunxi consulting data, BOE’s annual shipment of flexible OLED smart phone panels was about 60 million in 2021, with a year-on-year increase of nearly 60%. The shipment of flexible display ranked first in China and second in the world; In terms of mled, the company launched the world’s first active glass based miniled TV, 75 inch 8kminiled, 86 inch 8kminiled and P0 9 glass based miniled display products continue to lead the innovation of mled industry. As a leader in the semiconductor display industry, the company has significant advantages in production capacity, technology and products. It continues to integrate high-quality resources in the downward period of the industry, and does not forget to practice its internal skills. It is expected to continue to grow through the cycle of the display industry.
As a leading enterprise in the global semiconductor display field, the profit forecast and investment rating company continues to lead technological innovation in LCD, OLED and mled fields, and has a broad long-term moat. Under the general trend of the era of Internet of all things, we believe that the company will enjoy the long-term profit dividends brought by the continuous growth and cyclical weakening of the industry. We expect that the net profit attributable to the parent company from 2021 to 2023 will be RMB 25.946/28619/33.770 billion respectively, the corresponding EPS will be RMB 0.67/0.74/0.88/share respectively, and the corresponding current PE valuation will be 7 / 7 / 6 times respectively, maintaining the “buy” rating.
The risk indicates that the downstream demand is less than the expected risk; Risk that the company’s new product R & D progress is less than expected; Supply chain Instability Risk; Risk of deterioration of competition pattern; Patent risk.
