(Report Producer Analyst: Tianfeng** Pan Hui Liu Yisi Zhu Ye).
Liande Equipment is a leading manufacturer of display module equipment, semiconductor packaging equipment and lithium battery equipment in China, with a complete R&D, manufacturing, sales and service system, and is committed to providing professional and high-performance special equipment and production line solutions for the display industry.
Founded in 1998, Liande Equipment completed the share reform in 2012 and was listed on the Shenzhen Growth Enterprise Market in 2016.
Liande Equipment has strong technical hard power and market influence in the six fields of 3C intelligent equipment, TV module equipment, automotive electronic equipment, semiconductor packaging and testing equipment, 5G equipment and lithium battery equipment, leading the development direction of the industry with advanced technology and high-quality services, and gradually becoming a world-class industrial automation equipment manufacturing enterprise.
The company is deeply involved in the display industry, and its equipment products cover the post-processing process of panel manufacturing.
With more than 20 years of experience in the industry, Liande Equipment focuses on the research and development of wearable, mobile phone, 5G communication and other consumer display electronic products and module automation equipment for medium and large-size display screens in notebooks, computer monitors, and TVs, and is committed to the whole line and whole plant automation solutions for LCD, OLED and other display technologies, all kinds of rubber coating, automatic indentation detection AOI, etc.
1.1.History: Committed to the research and development of display module equipment, with deep technology and customer accumulation
Liande Equipment was founded at the end of the last century and was listed on the Growth Enterprise Market of the Shenzhen Stock Exchange in 2016. The company has deepened the strategic layout in the field of intelligent manufacturing equipment, built a number of business divisions such as 3C intelligent equipment, TV module equipment, and vehicle display equipment, and continuously made breakthroughs in the process and manufacturing equipment technology of display panel back-end equipment lamination, binding, lamination, bias pasting, testing, etc., and its customers include BOE, Huaxing Optoelectronics, Tianma and other domestic mainstream panel manufacturers.
Committed to the research and development of display module equipment, continuous breakthroughs in technology.
As a leading supplier of electronic special equipment and solutions in China, Liande Equipment is closely related to the continuous breakthroughs in display technology in the past ten years, and the technological breakthroughs are concentrated in 2017-2020: in 2017, the company completed the research and development of high-speed 4S automatic full lamination production, high-precision ICF equipment, 3D curved surface lamination equipment and flexible AMOLED COF bonding equipment project and other projects, and achieved mass production; In 2018, Liande Equipment pioneered the domestic TV module whole line MP, the research and development of large-size module bonding equipment and the expansion of the whole line of TV modules, which enabled the company to enter the large-size display equipment market and achieve a new profit growth point for the company. In 2019, the company successfully developed the mass production technology of small and medium-sized flexible 3D lamination line and flexible (film POL, etc.) bonding equipment; In 2020, the automatic lamination equipment for OLED flexible screen 3D and folding screen has been highly recognized by domestic OLED manufacturers, and the lamination of 3D cover plate within 180° has also passed the verification of top domestic mobile phone manufacturers, and has started mass production on the client.
The company has won the bid for the core projects of BOE and Tianma micro production lines for many times, and the company's equipment business has been growing in recent years.
After the technical precipitation from 2017 to 2020, the company's operating income will continue to grow from 2021 to 2023, and it has established close cooperation with our customers. According to the interview minutes and Q&A of the wind platform company, the company has established a good reputation in the industry, has a group of customers with long-term and stable cooperative relations, and has established good close cooperative relations with well-known enterprises including Continental Automotive Electronics, Bosch, Visteon, BOE, Shenzhen Tianma, Huaxing Optoelectronics, Apple, Huawei, Foxconn and other well-known enterprises.
1.2.Corporate governance: The shareholding structure is stable, the core team is experienced, and the subsidiaries perform their own duties
The company's equity structure is stable and the equity is relatively concentrated. Nie Quan, the controlling shareholder and actual controller of the company, holds 4928% of the shares, with a high shareholding ratio, in a relatively controlling position; The total shareholding ratio of the top 10 shareholders is 6076%, Nie Quan is the chairman, general manager and president of the company.
Figure 4: Company shareholding structure as of September 30, 2023
The team has been working on machinery and equipment for several years, and has rich experience in panel module equipment processing. Chairman Nie Quan has more than 30 years of rich experience in the field of machinery and equipment, and has served as the chief engineer of product design and the director of the electronic components factory. The core team includes equipment mechanical engineers and R&D engineers, many of whom have worked for the company for ten years and have been deeply involved in the panel module processing equipment industry with rich experience.
Its six subsidiaries perform their own duties, in addition to the core subsidiary Dongguan Lianpeng and the Romanian subsidiary specially established in order to develop overseas markets, there are also four subsidiaries of Hengyang Liande, Suzhou Lianpeng, Liande Semiconductor and Lianpeng Technology.
In September 2017, due to the needs of the development strategy, the company set up a core subsidiary, Dongguan Lianpeng, and the company's net profit in the first half of 2023 accounted for 4968%。
Dongguan Lianpeng was established to expand the market business, the integration of advanced materials application technology, in order to enhance the company's core competitiveness and profitability, its main business is electronic semiconductor industrial automation equipment, optoelectronic flat panel display industrial automation equipment, testing equipment, other automation non-standard professional equipment and facilities, tooling fixtures, industrial control software research and development, design, production, sales and technical services, machinery and equipment leasing.
According to the company's 2023 semi-annual report, the subsidiary's contribution to the company's net profit reached 4968%。
The company's main business is the development, design, production and sales of industrial automation equipment, facilities and software, and the R&D, production, sales and technical services of professional equipment for flat panel display automation.
The establishment of Liande Semiconductor in 2021 can give full play to the company's accumulated technological advantages in the semiconductor field, and its general business projects are semiconductor production and technical services. The original intention of the establishment of Lianpeng Technology is to increase the development of lithium battery equipment market and technology, and strengthen the company's competitive advantage in new fields, so its main business revolves around R&D, production and operation of lithium-ion power battery manufacturing equipment.
With the continuous increase in orders from large foreign customers, in order to better serve large customers, the company has set up a subsidiary in Romania. Romania Liande serves the company's business in Europe, especially the business needs of Continental Automotive Electronics in Germany, provides professional and efficient services for foreign customers, and realizes the company's overseas development strategic planning.
1.3.Benefiting from the further development of the OLED industry chain, the company has entered a period of rapid growth
Because the revenue volume continues to expand, the performance is at a record high. After years of R&D layout and benefiting from the penetration of OLED panels, the company's revenue and profit have achieved rapid growth, and the company's total operating income in the first three quarters of 2023 will be 88.6 billion yuan, net profit attributable to the parent company was 12.8 billion yuan, reaching a record high.
At present, the company's profitability mainly depends on capacity utilization, and industry prosperity is the core influencing factor. In the past few years, the mobile phone boom has entered a downward cycle, the domestic module production line expansion power is insufficient, and the localization rate of OLED panels is relatively low, and the company's gross profit margin and net profit margin have declined for several consecutive years.
In 2021, the company entered the field of lithium battery equipment and further increased R&D, and the company's R&D expenses increased by 38% year-on-year7%, which further reduced the company's profitability. However, as the OLED panel industry begins to enter the boom cycle, the company's profitability is expected to continue to improve. In the first three quarters of 2023, the company's gross profit margin was 3377% and a net profit margin of 1432%。
The company attaches great importance to research and developmentThe competitive advantage of products continues to strengthen, and the R&D expense ratio in the first three quarters of 2023 is 985%, a year-on-year decrease of 098 pct。In recent years, Liande Equipment has continuously increased R&D investment, strengthened and enhanced the company's technological leadership in the field of flat panel display equipment, and continuously strengthened the core competitiveness of the company's products. The company's R&D expenses in the first three quarters of 2023 were 8,727270,000 yuan, accounting for 9 percent of operating income85%, an increase of 23 year-on-year06%, an increase of 53 compared with 201805%。
The company's expenses are well controlledIn the first three quarters of 2023, the company's expense ratio decreased amid fluctuations. In order to control the period rate, the company continues to optimize the operation and management mode. In the first three quarters of 2023, the sales rate, management rate, and financial rate of Liande equipment were respectively. 51%, during which the rate showed a fluctuating decrease.
The company has a long-term layout, and has expanded its production capacity since 2020 to cope with the future development of the OLED industry chain. Since 2020, the company has begun to lay out new production capacity to cope with the general trend of OLED localization in the future, and build non-equity investment projects such as Liande Building, Hengyang R&D and production base project, and Dongguan plant construction to meet the needs of expanding production and operation. As of the end of the third quarter of 2023, the company's fixed assets data was 39.1 billion yuan, a year-on-year increase of 065%, of which the growth projects in 2022 are mainly machinery and equipment.
Inventories and contract liabilities grew rapidly, and the company had sufficient orders in hand. Since the production, delivery and acceptance of semiconductor equipment take about 3-6 months, and it generally takes 6-12 months for orders to be reflected in the company's revenue, the company's inventory and contract liabilities in the current year are to a certain extent the leading indicators of the company's revenue in the second year. As of the first three quarters of 2023, the company's inventory and contract liabilities were 65.4 billion and 12.9 billion yuan, according to the historical report, the company's inventory is mainly issued goods and products in progress.
2.1.The flexible substrate is different from the traditional hard bottom, which doubles the value of the back-end module
The back-end process of the panel is mainly for the module process of the touch display, which can be divided into four categories: bonding, dispensing, lamination, and testing.
Specifically, in the back-end process, the display panel needs to be hot-pressed and bonded with components such as driver IC and flexible circuit board (FPC), and the panel also needs to be laminated with polarizers, touch modules, heat dissipation layers, etc., and the corresponding equipment includes automatic COG, automatic FOG, backlight assembly machine, ACF adhesive machine, dispensing machine, particle detection machine, bias bonding machine, etc.
Focusing on the back-end equipment of display module manufacturing, the company's main products cover the back-end module assembly process. The company's main products cover most of the back-end module assembly processes, including polarizer lamination, COG hot pressing bonding, FOG hot pressing bonding, OLB hot pressing bonding, AOI (automatic optical inspection) dispensing, backlight assembly, backlight-module assembly, aging testing, packaging, etc., the corresponding process of the company's equipment products include full cleaning machine, polarizer attaching machine, ACF pasting machine, FOG bonding machine, COG bonding machine, PCB assembly machine, backlight lamination machine, backlight-module assembly machine, etc.
The complex OLED process has led to an increase in the market demand for back-end module automation equipment. Compared with the LCD manufacturing process, the OLED process technology is more complex, and the number of processes required such as bonding is increased, and the amount of equipment used is increased accordingly.
Taking the On-Cell process as an example, in the assembly process of a traditional LCD panel equipped with the On-Cell process, a total of 4 bonding processes are required between the touch layer FPC, the display layer driver IC, the display layer FPC, and the two-layer FPC, and the lamination aspect has a total of 5 processes from top to bottom: cover glass, polarizer, touch layer, display layer, polarizer, and backlight module.
For OLED flexible screens, 1 bonding is required between the driver IC and film, film and display layer, film and mobile phone motherboard, touch layer FPC, touch layer and display layer, a total of 5 times, and there are 4 times of lamination in sequence: cover glass, polarizing film, touch layer, display layer, and heat dissipation layer.
In the process of converting from an ordinary screen to a full screen, the width of the bezel is increased from 05mm down to 0About 3mm, the accuracy of the dispensing machine is required to be higher, and the number of lamination times will also be increased by 1-2 times.
In the future, the wide application of flexible OLED screens is expected to drive the upgrading of back-end equipment. The repetition of the equipment in the rigid OLED screen and LCD screen is about 80%, and the remaining 20% needs to be replaced, while the flexible OLED screen is the opposite, 70-80% of the equipment needs to be replaced and upgraded, so it may increase the demand for back-end equipment.
At this stage, in terms of bonding equipment, the main change of LCD full screen is a more sophisticated dispensing process to achieve a narrower bezel, COF is used instead of COG in the terminal part, and 2D lamination is still used in bonding equipment. For the flexible OLED process, COG and FOG are expected to be upgraded to COF COP and FOF in one step for bonding equipment, and flexible and 3D bonding equipment for laminating equipment.
Figure 19: Back-end key equipment upgrades during screen evolution**.
OLED has doubled the value of back-end module automation equipment. According to Zhiyan Consulting, with the application of OLED display in Apple's iPhoneX in 2017, OLED technology is expected to be rolled out on a large scale in the future.
Compared with the traditional LCD screen assembly line, the back-end equipment required in OLED assembly has higher requirements, and the value of core equipment (bonding + lamination + dispensing + testing) will increase from about 40 million yuan to about 80 million yuan.
2.2.The penetration rate of OLED panels in mobile phones and medium-sized devices has increased, driving the continuous growth of the OLED industry in the future
We believe that the increase in the penetration rate of mobile phone OLED screens and the increased use of OLED panels in medium size are the two core driving factors for the future growth of the industry.
With the continuous launch of mid-to-high-end OLED smartphones, as well as the sinking of OLED panels into the low-end smartphone market, the market penetration rate of OLED panel smartphones is expected to rise to 55% by 2024, according to China Electronics News**.
The low-end smartphone market is gradually adopting OLED screens, and in 2024, 30 million Samsung low-end mobile phones will abandon LCD and use OLED, OPPO A1 Pro, OPPO K10 Pro, Redmi Note12 Pro and other 1,000-yuan machines released in 2023 are all OLED screens, and mainstream manufacturers are willing to increase the use of OLED panels on low-end smartphones, and the OLED penetration rate is expected to continue to increase.
Figure 21: OLED panel smartphone market penetration (inclusive**) from 2018 to 2024
Apple's medium-sized iPad will use OELD screens for the first time in 2024, and the penetration rate of medium-sized OLED is expected to usher in a rapid increase. According to the information disclosed by Macrumors, Apple will launch the OLED version of the iPad Pro in 2024, which will be the first device in the history of the iPad to use the OLED screen, and the OLED version of the iPad Air and the OLED version of the iPad Mini will be released at the same time in 2026.
We expect that Apple's medium-sized iPad will use OLED screens, which may indicate that other manufacturers will gradually adopt OLED screen tablets, and the penetration rate of medium-sized OLED may be further improved.
Qunzhi Consulting expects that OELB NB panel shipments will increase to 69m and the penetration will reach 36%。According to Qunzhi Consulting, with the G8X OLED IT production line will focus on mass production in 2026 in 2027, and OLED NB shipments will increase significantly, and OLED NB panel shipments will reach 16 in 20269M, the penetration rate will increase to 8%, and OLED NB will usher in a period of rapid growth in 2027 and 2028.
2.3.The continuous expansion of domestic module production lines is conducive to the development of the industry
The domestic module production line continues to expand, covering the production line of OLED panel and LCD panel module. According to OLEDiINDUSTRY*** information, a total of 9 module production lines have been invested in the past two years, with a total investment of 551500 million yuan. Among them, there are 3 AMOLED screen module production lines, with a total investment of 8.5 billion yuan; 1 LCD module production line, with an investment of 51500 million yuan. The total investment in OLED module production line is higher than that of LCD module production line.
In the past two years, the total planned investment in the OLED touch panel production line is 2322.1 billion yuan, the core part of the investment amount of 1877 billion yuan, the company involves the market space of COG FOG and laminating machine 119$1.8 billion.
In the past two years, the total investment of OLED production line is 16586.1 billion yuan, according to the data of Zhiyan Consulting, the investment in back-end equipment accounted for 14%, and the total investment in back-end equipment was 232$2.1 billion. According to the data of Zhiyan Consulting, the value of back-end equipment for a single OLED touch panel production line is 097.4 billion yuan, the value of the core part is 078.8 billion yuan, the core part accounted for 8084%, according to the total investment in OLED equipment in the past two years 2322.1 billion yuan, the value of the core part of the back-end equipment of the OLED production line invested in the past two years is 1877 billion yuan.
In the past two years, the total planned investment in the LCD touch panel production line is 541.7 billion yuan, with an investment of 40 million yuan in the core part6.9 billion yuan, the company involved in the market space of COG FOG and laminating machines 215.8 billion yuan.
In the past two years, the total investment in LCD production line is 5417.1 billion yuan, according to the data of Zhiyan Consulting, the investment in back-end equipment accounted for 10%, and the total investment in back-end equipment was 541.7 billion yuan.
According to the data of Zhiyan Consulting, the value of back-end equipment for a single LCD touch panel production line is 054.7 billion yuan, the value of core equipment is 041.1 billion yuan, core equipment accounted for 7511%, according to the total investment in OLED equipment in the past two years 541.7 billion yuan, the value of the core part of the back-end equipment of the OLED production line invested in the past two years is 406.9 billion yuan.
3.1.Domestic manufacturers of back-end equipment are actively seizing the share of Japan and South Korea, and the process of domestic substitution is accelerating
In the field of back-end process equipment for flat panel display devices, the competitors in the market are mainly Japanese and South Korean enterprises and local enterprises led by Liande Equipment. In recent years, domestic equipment companies have risen and developed rapidly, and are gradually breaking the monopoly position of Japanese and South Korean enterprises in the field of flat panel display module assembly equipment.
The import substitution process of back-end equipment is accelerating, and the market share of domestic equipment is increasing. The technology and manufacturing level of domestic manufacturers in the back-end equipment is basically the same as that of Japan and South Korea, and even catches up with foreign enterprises.
In the context of domestic industrial policies and downstream manufacturers to support localization, domestic equipment manufacturers will be able to better strengthen their technical reserves in the field of back-end module technology according to the changes in downstream product demand. From 2017 to 2019, the localization of module testing equipment was nearly 50%, which can be completely replaced, and in the field of module assembly equipment, localization has increased rapidly, reaching about 20%.
The main equipment of the back-end process is bonding and lamination equipment, and Liande Equipment is in the leading position in the industry in the field of bonding and laminating equipment, and is gradually developing into the field of new displays. Liande Equipment has completed the development of flexible screen double-sided bonding equipment and flexible AMOLED COF bonding equipment, and has provided Huawei with 3D lamination equipment, fingerprint module automatic assembly equipment, flexible mobile phone assembly line, and other testing and automatic inspection control systems.
In addition, in the field of Mini LED, Liande Equipment has launched chip sorting equipment, chip expansion equipment, vacuum film equipment, chip mass transfer equipment, etc.
In recent years, Liande Equipment has won many orders for display modules from BOE and other manufacturers, demonstrating the company's competitive strength. On September 14, 2023, Liande Equipment issued an announcement confirming that it has become the bidder of BOE's high-end module project, with a winning bid amount of about 49.2 billion yuan, the winning equipment is an automatic laminating machine and a polarizer placement machine.
In July and February 2023 and December and February 2022, Liande Equipment won the bid for BOE's sixth-generation flexible AMOLED production line project four times, with a winning bid amount of about 20.8 billion, 08.5 billion, 13.6 billion, 13.1 billion, providing vacuum lamination equipment, laminating equipment, heat dissipation film attaching machine, polarizer placement machine, etc. for BOE projects.
3.2.Actively explore the fields of mini LED, vehicle display, etc., and the company's business scope is further extended
The domestic Mini LED market is booming, and Liande Equipment Mini LED high-speed mass transfer equipment has been developed, laying a solid foundation for the company's long-term development in the future.
At present, Mini LED technology has been widely used in high-definition TVs, display screens, virtual reality equipment, automotive lighting, car screen displays and other fields. With the continuous maturity of the display technology and the continuous improvement of the industrial chain, the mini LED industry continues to develop and has broad market prospects.
In 2023, Mini LED TV sales will grow against the trend, and the market penetration will exceed OLED TVs for the first time. According to Aowei Cloud Network (**c) data, in the first half of 2023, China's Mini LED TV sales accounted for 23%, a year-on-year increase of nearly 3 times, significantly exceeding the market share of OLED TV in the same period; The proportion of sales reached 87%, an increase of 61 times.
In the field of Mini LED, Liande Equipment has launched MiniLED chip sorting equipment, MiniLED chip expansion equipment, and MiniLED vacuum film equipment. In addition, mass transfer is a core technical problem that Mini LED needs to solve, and the company is laying out the research and development of high-speed mass transfer of Mini LED chips, which has laid a solid foundation for the company's long-term development in the future.
In terms of on-board display business, benefiting from intelligence, on-board display has become the mainstream, display technology has been iteratively upgraded, and the company's on-board business has penetrated into overseas markets. Compared with the traditional single display form, multi-screen can make the division of labor of each screen more clear, and at the same time, make full use of the cabin space to increase the display area, meet the personalized driving and entertainment needs of passengers, and improve the driving experience. In recent years, the degree of electrification and intelligence of the cockpit represented by the on-board display has been continuously improved, and the process of multi-screen driven by intelligence has accelerated, and some vehicles have adopted dual or even triple screens.
In terms of in-vehicle display technology,The introduction of LTPS technology has enhanced the competitiveness of LCD, and display technologies such as OLED and Mini LED have been applied in vehicles one after another due to their excellent display effects. The company has accumulated rich practical experience in overseas project management, created a professional and strong overseas project delivery team, and has the project delivery capability of "one-stop" service of automated production lines.
With the rapid development of the domestic semiconductor industry, the initial formation of domestic substitution, and the continuous growth of the market scale, the company continues to improve the level of R&D technology and continuously improve its comprehensive competitiveness in the semiconductor packaging and testing industry. With the steady advancement of policies, the semiconductor industry and the packaging and testing sub-industry are expected to usher in new development opportunities, and the semiconductor industry is ushering in a stage of rapid development.
According to the estimate of the International Semiconductor Industry Association SEMI, the global semiconductor equipment sales will reach 100 billion US dollars in 2023, and the equipment shipments in the Chinese market are expected to exceed 30 billion US dollars, ranking first in equipment expenditure.
The global semiconductor industry has shifted to the mainland, and semiconductor manufacturing companies in Taiwan, China and overseas have laid production lines and expanded production capacity in the mainland, and the import substitution capacity has been initially formed, and the scale of China's semiconductor packaging and testing market will maintain a continuous growth trend.
The company actively investigates and expands advanced packaging processes and third-generation semiconductor-related equipment, researches equipment process technology, lays out the underlying software, algorithms and machine vision technology of related equipment, and independently develops key core modules and components of equipment, so that the company's core technology competitiveness in the field of semiconductor equipment has been further consolidated and consolidated.
With the development and growth of the domestic lithium battery industry, the rapid progress of domestic lithium battery equipment technology, and the continuous improvement of the localization rate, the company has accelerated the technology research and development and market development in the field of lithium battery equipment, and strives to achieve rapid business development.
In recent years, the rapid development of lithium battery applications has greatly boosted the investment demand for lithium battery equipment.
According to GGII research statistics, the market size of China's lithium battery production equipment in 2022 will be 100 billion yuan, a year-on-year increase of 701%, and the market size of China's lithium battery production equipment is expected to reach 155 billion yuan by 2025.
Domestic well-known lithium battery manufacturers have begun to use domestic equipment in batches, and actively promote the use of domestic lithium battery equipment in the production line, and the current domestic lithium battery equipment can fully meet the current domestic lithium battery production requirements.
The company continues to increase R&D investment in lithium battery blue film, liquid injection machine, cutting and stacking machine and other equipment, and uses advanced production technology, high-precision production methods, and standardized management to quickly achieve product breakthroughs and form sales orders.
In the future, the company will strengthen the automation, integration and intelligent research and development of lithium battery equipment, and strive to achieve iteration and innovation, so as to quickly enter the lithium-ion power battery market and enhance the company's industry status.
Core Assumptions:
1. In terms of new semiconductor display intelligent equipmentWith the further development of OLED industry chain and mini LED industry chain, the company's new semiconductor intelligent display business is expected to continue to maintain a high growth trend in performance, giving 23 24 25 years respectively87%/26.04%/60.33%% growth rate, up to 960/12.13/19.4.4 billion yuan.
2. Automotive intelligent cockpit system equipmentIt is expected that with the further development of overseas markets and the continuous growth of overseas high-end customer demand, the company's business volume will continue to expand, giving 23 24 25 years respectively 2000%/66.67%/16.67% growth rate, up to 180/3.00/3.5 billion yuan.
3. Gross profit marginThe company's gross profit margin from 2019 to 2022 is 3437%/28.89%/27.47%/31.30%, the recent panel ** warmed up, panel manufacturers thickened profits, manufacturers built new production lines, Liande equipment profit space increased, the company's gross profit margin is expected to be 35 in 23 24 25 years00%/35.00%/34.00%。
Liande Equipment is a leading supplier of new display technology and automation solutions for the whole line and the whole plant in China, with four product lines: new semiconductor display intelligent equipment, automotive intelligent cockpit system equipment, semiconductor packaging and testing equipment, and lithium battery equipment.
In the future, the company is expected to get more fitting and bonding orders in new semiconductor display intelligent equipment, and is optimistic that the company will continue to explore high-end overseas markets and continue to reap high returns in automotive intelligent cockpit system equipment.
It is expected that from 2023 to 2025, the company will be able to achieve 12With a revenue of 50 16 24 billion yuan, the company's net profit is expected to reach 181 /2.32/2.9.8 billion yuan.
In terms of comparable companies, we select Jingce Electronics and Huaxing Yuanchuang, which are mainly engaged in back-end testing equipment, and Yitian Co., Ltd., which is mainly engaged in back-end attachment equipment, as comparable companies, with an average PE multiple of 37 in 202454 times; Considering that the company's semiconductor equipment business is still in the growth stage, and the gross profit margin is lower than that of Jingce Electronics and Huaxing Yuanchuang, which are mainly engaged in testing equipment, we give the company 32 times PE, corresponding to a target price of 4177 yuan, corresponding to 24 years of profit 23.2 billion, 24-year market value of 742.4 billion.
The prosperity of the panel industry is less than expected
The panel industry has been declining since 2021 and has entered a downward cycle, reaching the bottom in the second half of 2022. At present, most mobile phone OLED panel production lines are still in a state of loss, and the panel industry still needs to wait for demand to further recover.
On-board orders fell short of expectations
Due to the slowdown in demand for automotive production lines, the company's 2023 automotive display business orders did not meet previous expectations. In the future, there is still uncertainty about whether the industrial planning of overseas mid-to-high-end car companies will be delayed, which will affect the company's orders and revenue.
Competition in the smart display device industry is intensifying
In recent years, the market share of domestic intelligent display equipment has been increasing, and the process of domestic substitution has accelerated. Enterprises in the same industry and new entrants continue to achieve technological innovation and market products through price reductions and other methods, resulting in increasingly fierce competition in the domestic market.
Overseas business risks
The company has a subsidiary in Romania, mainly to serve the company's automotive display business in Europe. If there are material adverse changes in the political and economic situation, industrial policies, laws and regulations of the country or region in which the business is located, the company's business may suffer material adverse effects.
Data measurement is the most important
The revenue and corresponding proportion of the company's market size, business type and corresponding proportion in the article are based on a series of assumptions, with reference to the company's historical operating data and other company conditions, which are subjective and do not necessarily represent the actual operation of the company, and are for reference only.
The report belongs to the original author and is for learning purposes only! If there is any infringement, please delete the private message, thank you!