The epidemic has led to an increase in the demand for home office leisure and a high increase in the performance of 2021H1. 2021H1 realized HK $34.934 billion in revenue, + 103.7% year-on-year, and home net profit of HK $1.041 billion, + 122.9% year-on-year. Of this total, revenue from smart screen business reached HK $23.086 billion, + 57.4% year-on-year; HK $7.087 billion from smart mobile, connected devices and services, + 51.6% year-on-year; HK $4.041 billion from smart business show, smart home and other businesses, + 106.1% from the same period last year; and revenue from Internet business from HK $721 million, + 38.3% from the same period last year.
The market share of intelligent TV business is steadily increasing. 2021H1's TV sales market share ranks third in the world, with a market share of about 11.6%, year-on-year + 1pct. In overseas markets, 2021H1's smart screen business rose in volume and price, with revenue of HK $16.657 billion, + 61.4 per cent year-on-year. In the domestic market, the 2021H1 smart screen business achieved HK $6.429 billion in revenue, + 47.9% year-on-year. According to the sales ranking, the company ranks third in the domestic market, with a market share of about 13.9%.
The Mini LED market is about to break out, and the company's forward-looking layout share is in the lead. According to Trendforce statistics, global Mini LED TV shipments in 2021 are 4.4 million units, which is expected to reach 7.8 million units in 2022 compared with the same period last year. The company has laid out Mini LED for many years and launched the world's first Mini LED backlit TV in 2018. From January to September of 2021, the company's global sales of Mini LED smart screens increased by 116.0% compared with the same period last year, ranking first in the domestic market. On January 5, the company continued to launch the world's thinnest 85-inch 8K Mini LED smart screen in CES 2022 to grasp the trend of large screen upgrade.
NXTWEAR AIR, LEINIAO AR launched, the continuous layout of the new VR/AR track. The company exhibited the second generation smart XR glasses NXTWEAR AIR and the industry's first binocular full color Micro LED holographic optical waveguide AR glasses LEINIAO AR at CES 2022. NXTWEAR AIR is equipped with 1080p Micro OLED panel and polarized BirdBath optical technology, which can provide users with portable cinema experience and be used in mobile games, telecommuting and other scenes. LEINIAO AR pioneered the full-color micro display engine, and will gradually launch information prompts, photo sharing, photo translation, Zhaopin control, multi-screen presentation, real scene translation, car mirror linkage and other functions.
Profit Forecast: we expect the company's net profit in 2023 to be RMB 1.03 billion, respectively, and corresponding to the share price PE of 7.7pm on January 7, which is 5.5 times higher than that on January 7, with a "buy" rating for the first time.
Risk tips: increased competition in the industry, downstream demand is lower than expected, R & D is not as expected.