What happened: the company announced its annual report in 2021 and quarterly report in 2022. In 2021, the company realized revenue of 2.371 billion yuan, an increase of 0.86% over the same period last year, and a net profit of 272 million yuan, down 10.91% from the same period last year.
2022Q1 achieved revenue of 508 million yuan, down 7.82% from the same period last year, 21.00% from the previous month, and realized a net profit of 52 million yuan from the previous year, down 6.29% from the same period last year and 33.33% from the previous year.
LED backlit basic disk stable, automotive LED and Mini LED and other new business contribution increment: in 2021, under the normal situation of the epidemic, the global political and economic environment is unstable, and the consumer electronics market is greatly affected. The company's gross profit margin is 24.22%, which is lower than the same period last year. However, the company adjusted its business strategy in time to improve production and operation efficiency while tapping the market potential to maintain the stable development of the core business. And the rapid growth of new businesses such as automotive LED and Mini LED provides a strong guarantee for the company's operating performance. Specifically, the revenue of the company's backlit LED products reached 1.679 billion yuan, down 6.15% from the same period last year, accounting for 70.82% of the business income, and the comprehensive yield of the products reached 99.3%. The company's backlit LED business has developed steadily, although the global consumer electronics market in the post-epidemic era has been affected by many factors, but the relatively strong performance of developed economies has a certain support for the global consumer electronics market, especially the demand for high-end products. The revenue of the company's lighting LED products was 283 million yuan, an increase of 18.36% over the same period last year, accounting for 11.95% of the business income, and the comprehensive yield of the products reached 99.25%.
Affected by the decline of the global economy and geopolitical conflicts, the growth rate of the global LED lighting market has slowed down significantly.
Automotive LED business continues to develop, and customer introduction is progressing smoothly: with the increasingly obvious trend of automobile intelligence and electrification, automotive electronics, as an important part of human-vehicle interaction, also has the characteristics of high technology content and high added value compared with traditional consumer electronic products, and the proportion of vehicle manufacturing cost is increasing. In 2021, the company's automotive LED business continued to perform well, making major breakthroughs among global strategic customers, and the proportion of sales increased steadily. The company's automotive backlight products have fully entered the global customer's supply chain system, is the only mainland brand; the company's series of automotive high-power lighting products, has been widely used in near and far lights, daylight. The company's gauge-grade MiniLED backlight source can be used in in-car instruments, central control navigation and other on-board electronics, has obtained a number of independent brand car projects, and the business is progressing smoothly; gauge-level MiniLED direct display module, which can be used in automobile internal atmosphere, external lighting and external media display, is widely used in new energy vehicles, and some projects have achieved mass production.
The traditional LED industry is waiting for recovery, and Mini LED shows that the application starts rapidly: the traditional LED industry has entered a mature period, the industry concentration has been further enhanced, and high-quality resources have been tilted to the head enterprises, forming a competitive pattern of the strong. Although the LED industry is affected by the weak demand for consumer electronics downstream, Mini LED emerging markets have begun to take volume, and Mini LED is expected to succeed the traditional LED industry and become a strong driving force for future development. According to Arizton data, the global Mini LED market will grow from US $150 million in 2021 to US $2.32 billion in 2024, and CARG will be 149.2% in 2021-2024. In addition, with the rapid development of automobile intelligence, vehicle screen, as an important medium of human-vehicle interaction and an important embodiment of automobile future and science and technology, is also showing a large screen, multi-screen, high-definition, interactive, pleomorphic and other development trends, automotive LED will also usher in a period of rapid development. According to MRFR statistics, it is expected that the size of the vehicle display market will continue to grow to $39.7 billion by 2027, with a compound growth rate of 13% from 2021 to 2027.
First recommendation, give "overweight" rating: we are optimistic about the company's leading position in the backlit LED market and accelerate its layout in the Mini LED field, which is expected to become the driving force of the company's performance growth in the future.
It is estimated that the company's homing net profit from 2022 to 2024 is 319, 395 and 0.35 million yuan respectively, EPS is 0.31 and 0.35 yuan, corresponding to PE is about 15x, 12x and 11x respectively.
Rating.
Risk tips: capacity release is not as expected, downstream demand is not as expected, Mini LED penetration is not as expected, and the impact of the epidemic is higher than expected.