Event: on April 28, 2022, the company released its 2021 annual report and its quarterly report for 2022. In 2021, the company achieved revenue of 163.691 billion yuan, an increase of 113.05% over the same period last year, and a net profit of 10.057 billion yuan, an increase of 129.20% over the same period last year. In the first quarter of 2022, the company achieved revenue of 40.598 billion yuan, an increase of 26.18% over the same period last year, and a net profit of 1.353 billion yuan, down 43.73% from the same period last year.
2021 semiconductor display, new energy photovoltaic and semiconductor materials two-wheel drive, high revenue and profit. In 2021, the revenue of semiconductor display business was 88.1 billion yuan, an increase of 88.39% over the same period last year, and the gross profit margin was 24.62%. The revenue of new energy photovoltaic and semiconductor materials business was 41.1 billion yuan, an increase of 623.30% over the same period last year, and the gross profit margin was 21.69%. The rapid growth of semiconductor display business mainly benefits from the high magnificence of the industry, the growth of the company's production capacity and the continuous optimization of its structure. New energy photovoltaic business benefits from the development opportunities of the new energy photovoltaic industry, 8-12 inch polished wafer, epitaxial wafer shipments accelerated.
Medium-sized production capacity to create a new driver of business growth. On the one hand, the T3 production line accelerates the size transformation, and the proportion of revenue from non-mobile phone products increases to 41%. On the other hand, the company's expanded sixth-generation LTPS LCD display panel production line project is speeding up construction. T9 project has completed plant construction and is expected to produce in 2023.
In the follow-up, the new production lines of other manufacturers will be later than the commissioning and mass production of the T9 production line. We think the company will have the first-mover advantage of increasing market share and expanding the product line.
Panel prices came under short-term pressure in the first quarter of 2022, and new energy photovoltaic and semiconductor materials relay growth. In the first quarter, the revenue of the semiconductor display business was 20.04 billion yuan, an increase of 15.3% over the same period last year, and the net profit was 340 million yuan, down 85.8% from the same period last year. TCL Central realized revenue of 13.37 billion yuan, an increase of 79.1% over the same period last year, and a net profit of 1.46 billion yuan, an increase of 96.2% over the same period last year. According to the official Wechat account of WitsView Wise Show, due to weak demand and insignificant production cuts by manufacturers, TV panels of all sizes fell, and the monthly decline of 65-inch TV panels reached 8.28% in April. It panels are also affected by demand cooling. Despite the short-term pressure on panel prices, the company's new energy photovoltaic and semiconductor materials business benefits from domestic policies to promote distributed installed scale growth, accelerated overseas energy transformation and fab expansion, and we believe that TCL Central will continue the company's revenue growth in the future.
Profit forecast and investment rating. We estimate that the annual operating income of the company is 1818.57 2022E-2024E 252.486 billion yuan, and the 2022E-2024E annual net profit of the company is 15,094 million yuan per share, and the corresponding is 0.61 shock 1.08 yuan per share. Taking into account the valuation level of comparable companies, give a 22-year PE valuation range of 8-9X, corresponding to a reasonable value range of 4.87-5.47 yuan, maintaining a "better than the market" rating.
Risk tips: panel prices further decline; LCD downstream market and mobile phone terminal market demand fluctuations; photovoltaic product demand is lower than expected; the company's production line capacity release progress is not as expected.