\u3000\u3000 Boe Technology Group Co.Ltd(000725) (000725)
Benefiting from the high prosperity of the industry, the company’s annual performance hit a record high: the company issued a performance forecast for 2021, and it is expected to achieve an operating revenue of 215-220 billion yuan, with a year-on-year increase of 59% – 62%; It is estimated that the annual net profit attributable to shareholders of listed companies will be 25.7 billion yuan to 26 billion yuan, with a year-on-year increase of 410% – 416%; The non net profit deducted was 23.8 billion yuan to 24.1 billion yuan, a year-on-year increase of 791% – 802%. Benefiting from the high prosperity of the industry, the company’s annual performance hit a record high.
The competitiveness of LCD business has been continuously strengthened: since the third quarter, the price of TV products has been structurally adjusted due to shipping congestion and rising logistics costs, which affect the willingness of downstream customers to prepare goods; Thanks to better demand and supply concentration, the price of IT products remains relatively stable. Facing the structural adjustment of product price, the company flexibly adjusted the product structure, continuously increased the proportion of high-tech and high value-added IT products, relied on good product and customer structure and leading technical and product strength, continuously strengthened the overall competitiveness and maintained a good profit level. In the short term, with the ease of shipping congestion and the decline of logistics costs, the willingness of downstream goods preparation is expected to continue to strengthen. In the long run, the supply-demand structure is expected to continue to improve under the background of the gradual withdrawal of memory capacity, the limited total amount of new capacity and the slow release of capacity.
OLED shipments continued to make breakthroughs: BOE flexible OLED shipments exceeded 10 million in a single month in December alone. According to sigmaintell data, BOE shipped about 60 million flexible OLED smart phone panels 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 customer cooperation, BOE provided ASUS with 17.3-inch OLED folding notebook display, jointly launched with oppo up to 400ppi flexible under screen camera technology, and provided screens based on f-oled high-end flexible display technology for iqoo8, glory magic3, glory 60pro and glory magicv mobile phones, It is expected to continue to benefit from the improvement of smartphone OLED screen penetration and the growth of glory mobile phone shipments.
Profit forecast and investment suggestions
We predict that the company’s earnings per share from 2021 to 2023 will be 0.67 yuan, 0.71 yuan and 0.89 yuan respectively (the original forecast from 2021 to 2023 is 0.58 yuan, 0.68 yuan and 0.89 yuan, mainly raising the assumption of displaying business income and gross profit margin). According to the 22-year average PE valuation level of comparable companies, the corresponding target price is 7.1 yuan, which will maintain the buy rating.
Risk tips
Risk of LCD panel price fluctuation; The progress of flexible OLED is not as expected.
