The traditional LED packaging market is growing, and orders are concentrated to the head. The company's traditional LED packaging is based on lighting, and it is a leading enterprise in the white lighting market. The demand for long life and high efficiency of white lighting is obvious in the market, and we think that LED traditional packaging will maintain a good growth trend. The company's main traditional LED packaging bases are expanding production. Guangzhou Branch has added 300 production lines at the end of October, and Jiangxi Smeade has added more than 200 production lines. The traditional LED package has been stable since the epidemic was alleviated last year, and the market is gathering to the leading enterprises.
Increase the production capacity of Mini LED packaging, and the demand for small and medium-sized sizes has increased significantly. On December 16, 2020, Hongli Zhihui issued a cooperation agreement between its subsidiary and the people's Government of Huadu District, Guangzhou. Hongli, a subsidiary, will invest in the construction of the second phase of Hongli Optoelectronic LED backlight display project in Huadu District, with an estimated annual output value of about 4 billion yuan after reaching full production, which will strengthen the company's leading position in the field of Mini LED and Micro LED packaging. In addition, the company signed a cooperation agreement with the people's Government of Huadu District of Guangzhou City on June 17, 2020 to invest in the construction of the first phase of the project, which has been put into production at the end of 2020, and the annual output value of the first phase is about 600 million yuan. At present, the demand for notebooks and VR products is growing more obviously. in addition to providing Mini LED products to foreign VR leading manufacturers, some domestic VR manufacturers have also cooperated with the company for proofing and trial production, and the production capacity of VR glasses is expected to exceed expectations.
Mini LED is expected to accelerate penetration, and terminal manufacturers promote the process of commercialization. On January 7, 2021, Samsung released the Neo QLED TV, which uses Mini LED as the backlight on the basis of QLED. On April 21, at the launch of Apple Inc's new spring phone, Apple Inc unveiled a new iPad Pro with a 12.9-inch screen that uses Mini LED technology and costs only $100 more than the previous generation of products with the same specifications. On October 19, Apple Inc released the MacBook Pro with Mini LED backlit display screen at the online press conference of "Unleash". Trendforce estimates that shipments of the new 12.9-inch iPad Pro will reach 5 million in 2021 and 3.1 per cent of tablet penetration worldwide. We believe that with the launch of Mini LED products by terminal manufacturers, consumers' habits will be cultivated.
Profit forecast and investment rating. We estimate that the operating income of the company in 2021-2023 is 43.04max 57.14 billion yuan respectively, the net profit of the company in 2021-2023 is 3.11pm 4.78 / 610 million yuan, and the corresponding value is 0.44pm 0.68pm 0.86 yuan per share. The operating income of the company is estimated to be 4.56 million yuan per share, 4.78 yuan per share and 0.86 yuan per share, respectively. Based on the PE valuation method, we give the company 45-50x PE in 2021, and we believe that the reasonable value range of the company is 19.76-21.95 yuan per share, with a "better than the market" rating for the first time.
Risk tips: the number of Mini LED terminals is not as expected; the competition in the industry is intensified; the company's production capacity is not as expected; the epidemic continues to worsen.
