Event: the company released its annual report for 2021 and quarterly report for 2022. The company achieved revenue of 4.075 billion yuan in 2021, an increase of 30.43% over the same period last year, and a net profit of 266 million yuan, an increase of 186.64% over the same period last year.
2022Q1 realized revenue of 837 million yuan, down 2.27% from the same period last year, and net profit of 54 million yuan, down 12.97% from the same period last year.
With the rapid growth of performance in the past 21 years, traditional LED packaging and automotive lighting have continued to recover: in terms of LED packaging, the main business income of LED semiconductor packaging business in 2021 was 3.372 billion yuan, accounting for 82.76% of the total revenue, an increase of 33.57% over the same period last year; gross profit margin 20.36%, capacity utilization 82.15%, comprehensive product yield 97.14%. The company's LED semiconductor packaging business continues to consolidate the dominant position in the field of traditional white light packaging, while actively laying out Mini LED, UV and other business areas to cultivate new profit growth points of the company. In terms of LED automotive lighting business, the company's LED automotive lighting business realized 596 million yuan in main business income in 2021, accounting for 14.63% of total revenue, an increase of 16.28% over the same period last year, a gross profit margin of 20.27%, and a comprehensive product yield of 99.28%. The overall domestic epidemic situation is stable and controllable, and the demand of automobile market at home and abroad is recovering actively.
MiniLED continues to expand its production capacity and create new business growth points: in 2021, the company has fully launched MiniLED and has become one of the few enterprises in the world that can produce and sell MiniLED products on a large scale.
In terms of production capacity, the first phase of the Mini LED project has been successfully put into production and provides mass production for mainstream manufacturers at home and abroad, while the second phase of the Mini LED project capped the main plant in December 2021 and is now in the process of decoration; in terms of technological innovation, in January 2021, the company established a joint laboratory of Mini/Micro LED with South China University of Technology and maintained close cooperation with first-tier brands at home and abroad, jointly promoting the scale and commercial application of Mini LED products.
Mini LED ushered in the first year of development, the marketization process is accelerating: 2021 is the first year of Mini LED development, according to experts, the output value of Mini LED backlight chip will reach US $164 million, and will reach US $1.39 billion in 2025, with a compound growth rate of 53.31%. The output value of Mini LED backlight panels increased from US $608 million in 2021 to US $6.168 billion in 2025. In the display field, the penetration of Mini backlight will increase significantly in the next 2-3 years; Mini direct display will accelerate market development in business display fields such as conference rooms, film screens, film and television shooting; Mini LED as the core technological innovation field of LED industry, the marketization process is accelerating.
Maintain the "overweight" rating: we are optimistic about the company's leading layout in Mini LED packaging. With the volume of downstream Mini LED applications, it is expected that the company's performance will be greatly improved. It is estimated that the 2022-2024 net profit will be 464 million yuan, 551 million yuan and 633 million yuan respectively, EPS is 0.66,0.78 yuan and 0.89 yuan respectively, and the corresponding PE is 10X, 9X and 7X respectively.
Risk tips: Mini LED downstream demand is lower than expected, customer expansion is not as expected, the impact of the epidemic is higher than expected, and competition in the LED packaging industry intensifies.
