\u3000\u3000 Landai Technology Group Corp.Ltd(002765) (002765)
Key investment points
Event: the company issued a performance forecast for] 2021. It is estimated that the net profit attributable to the parent company will reach 200 million ~ 230 million yuan in 2021, with a year-on-year increase of 2490.8% ~ 2879.4%; It is estimated that the net profit attributable to the parent company after deducting non-profit is 130 million ~ 150 million yuan, with a year-on-year increase of 573.3% ~ 646%.
It is expected that the loss will be reversed year-on-year in the fourth quarter and the growth momentum will continue. According to the performance forecast of the company in 2021, the net profit attributable to the parent company in the single quarter of 21q4 is expected to be 23 million ~ 53 million yuan, and the net profit attributable to the parent company after deduction is expected to be 15 million ~ 35 million yuan, reversing the loss state of 20q4 year-on-year. As the fourth quarter is the traditional peak sales season, the orders of taiguan technology, a subsidiary, are in a saturated state, and the production capacity and business scale of touch display modules in Chongqing continue to expand, driving the continuous growth of touch display business performance. Driven by the adjustment of customer structure and product upgrading, the power transmission business grew significantly.
Touch display and power transmission dual wheel drive have achieved remarkable results. In the fourth quarter, the epidemic repeatedly promoted the continuous growth of the demand for relevant electronic equipment such as telecommuting and home entertainment, and the capacity utilization rate of the company’s touch display was high. The company actively promotes the cooperation with automotive electronic customers, and the on-board display products have achieved mass production and sales. The structural adjustment effect of the company’s customers in China’s first-line car factories is obvious, and the product upgrading of new energy vehicle parts has achieved initial results.
The implementation of restricted stock incentive plan ensures the realization of business objectives. According to the company’s restricted stock incentive plan in 2021, the company has completed the registration of the first grant of the restricted stock incentive plan to the core management personnel, core technology and business personnel, and granted 7.45 million restricted shares for the first time, accounting for about 1.3% of the total share capital of the company, with the grant price of 3.46 yuan / share. The implementation of the restricted stock incentive plan will enhance the enthusiasm of the company’s core employees and ensure the realization of the company’s business objectives.
Profit forecast and investment suggestions. It is estimated that the company’s EPS from 2021 to 2023 will be 0.40 yuan, 0.52 yuan and 0.64 yuan respectively, corresponding to 20 times, 15 times and 12 times of PE. It is expected that the on-board display and new energy vehicle parts products will continue to be in large quantities, and the growth momentum of the company is expected to continue and maintain the “hold” rating.
Risk tip: market expansion may be less than expected, and capacity expansion may be less than expected.
