Report summary:

Set up the aerogel die-cutting business and join a new circuit for power battery materials. Xiamen Lifu, a subsidiary of the company, uses multiple processes such as cutting, painting, drying, die-cutting, screen printing, die-cutting, and edge banding to make aerogel felt as an aerogel insulation product, and effectively solved the powder loss problem. It mainly supplies power battery manufacturers such as Ningde Shidai. Aerogel can be used in the vehicle structure of new energy vehicles and vehicle batteries at the same time. It can effectively solve the insulation problem of lithium iron phosphate batteries in low temperature environments and the thermal loss of ternary batteries in high temperature environments. It is the preferred material for lithium battery insulation. In 2022, the company successfully received a large number of orders from Ningde Era and became one of the main suppliers of aerogel insulation products from Ningde Era.

In the future, with the continuous development of the new energy battery market, the continuous release of aerogel material production capacity, the aerogel market will expand further. The scale and market share of the company's aerogel business are expected to increase further, becoming the core growth driving force for the company's performance.

The advantages of optical full lamination technology are obvious, and various application fields are being actively explored. The optical full lamination application solution developed and launched by the company uses modified silicone optical liquid glue and automated slit coating technology, and is equipped with a fully automated lamination production line. Compared with mainstream full lamination processes on the market, it greatly improves production efficiency while effectively reducing material and labor costs, and has been successfully applied to automotive screen lamination and other fields.

Compared with framing, full lamination technology can provide a better display effect. At the same time, it can prevent dust from entering the screen, improve the strength of the combination between the touch module and the panel, and effectively reduce the interference caused by display panel noise to the touch signal. In addition, full lamination technology also has broad application space in other fields. The company is currently jointly developing new photovoltaic module bonding equipment with various enterprises in the photovoltaic industry to explore the feasibility of application scenarios of the company's self-developed optical liquid adhesive materials in the photovoltaic industry. The scope of application of full lamination technology is expected to be further extended to enhance the company's core competitiveness.

Integrate the traditional business of die-cutting and liquid crystal display modules to accelerate other business adjustments. The company has now built an industrial chain covering R&D, processing, and sales of liquid crystal display modules, various optical films and electronic and functional devices, intelligent inspection and automation equipment. It has become an important supplier for a large number of leading international and domestic enterprises including Apple, Samsung, LG, BOE, Huaxing Optoelectronics, Hisense, Guanjie, etc., while actively developing advanced materials research and industrialization applications. Currently, it continues to develop fully automatic screen lamination and aerogel die-cutting business. The company made timely adjustments to the original diversified business strategy, shrank and divested the under-operated photovoltaic and big data businesses, and formulated a development strategy focusing on the main business and concentrating superior resources to develop the core business.

Investment suggestions: We expect the company to achieve revenue of 1,48,19.79.304 billion yuan in 2023-2025, achieve net profit of 1.4, 245, 393 million yuan, PE 33.15/19.0/11.82X for the first time, and give it a “buy” rating.

Risk warning: marketing falls short of expectations, profit forecasts and valuations fall short of expectations