Matters: Dehao Runda recently proposed to raise no more than 4.5 billion yuan from Zengli, including 2 billion yuan for LED flip chip project, 1.5 billion yuan for LED chip-level packaging project, and 1 billion yuan for supplementary working capital. Dehao Runda's annual business income is expected to exceed 8 billion yuan within three years.
Peace viewpoint:
The advantage of flip technology is highlighted, and Dehao seizes the domestic opportunity: LED flip chip combines the advantages of formal chip and vertical chip, with high performance-to-price ratio, with the advantages of "withstanding large current, good heat dissipation, uniform coating of phosphor, no gold line risk, easy module integration" and so on. Flip technology has a broad application prospect in general lighting, automobile, high-power lighting, large-size backlight, projector, flash and other fields. International big manufacturers Philips, Cree, Osram and Nichi have chosen the flip technology one after another, which fully illustrates the future technology trend of LED flip chips and packaging devices. The competition of domestic formal LED chips and packaging devices has entered a white-hot stage, while the market of LED flip chips and packaging devices is in a gap period of localization, Dehao Runda increases the code flip business through this order, and the project forms an annual production capacity of 5 billion flip chips after reaching production.
Strengthen LED packaging business, industry consolidation is worth looking forward to: according to Strategies Unlimited statistics, global LED packaging revenue exceeded 15 billion US dollars in 2014. It is estimated that the global LED packaging revenue will grow at an average annual compound growth rate of 13% from 2012 to 2018. The rapid development of LED packaging and applications can effectively ensure the digestion of the company's production capacity of this investment project. After the fund-raising project is put into production, on the one hand, the company will carefully cultivate the needs of existing customers to improve sales models, while making use of existing customer resources, sales channels for sales platform integration, business development; on the other hand, it will strengthen the integration of Rex lighting sales channels, vigorously expand O2O lighting and smart home e-commerce platform, achieve online and offline integration, and improve product penetration.
Investment strategy: we estimate that the company's revenue in 15-16 years is 59.25 yuan and 9.331 billion yuan respectively, the corresponding EPS is 0.26,0.44 yuan, and the corresponding PE is 62.31 and 36.99 times respectively. With world-class manufacturing equipment and talents, vertical integration and the vast domestic market on the mainland, we are optimistic about the company's exhibition prospects in the era of LED lighting. After the completion of this fixed increase, the layout of Dehao Runda LED industrial chain is further optimized. The company has a bright future and maintains a "highly recommended" rating.
Risk hint: LED industry competition intensifies, the progress of transformation is not as expected.