Recently, we have conducted a survey of Zhaochi shares, and the main points are summarized as follows:
Focus on ODM business. The company makes full use of the advantages in cost control, innovative product differentiation and integration, efficient management, etc., conforms to the trend of brand enterprise product outsourcing, wins customer orders with low cost, high quality and excellent appearance design, and develops rapidly. With diversified customers, the proportion of first-line brands is still low. The business is mainly export, and foreign customers are mainly supermarkets and second-tier color TV brands. Supermarkets such as Best Buy and Carrefour account for about 30% of exports, and cooperation is increasing; emerging markets such as Russia and Southeast Asia are growing rapidly. In the company's business volume, the purchase of international first-line color TV brands is less than 5%, and there is more room for the future.
The domestic market is growing the fastest. Domestic sales in the first half of the year totaled 578 million yuan, an increase of 239.42%. On the one hand, due to a small base, the company's products gradually won the trust of domestic customers, and the scale of cooperation continued to expand. It is expected that the future Nanchang Zhaochi base will focus on domestic customers.
There are plenty of customer orders at present. Customer orders are usually forecast on a quarterly basis, and orders are usually placed in about two months. Orders are now scheduled for November, and full production has been reached in August. Third-quarter results are likely to exceed expectations. The target for the second half of the year is about 4 million, and it is estimated that there is a high probability of achieving it based on the current situation.
LED products are expected to be released. The company focuses on LED packaging and lighting products, also using the ODM model, the first half of the export revenue of 49 million yuan, the current monthly sales revenue is expected to reach 50 million yuan, the annual target of 300 million yuan, is expected to become an important part of future performance growth.
Maintain the "overweight" rating: the construction of Zhaochi Industrial Park will lay the foundation for sustainable development in the future, and the proportion of direct LED TVs in the company continues to increase. It is estimated that from 2012 to 2014, the EPS will be 0.83 EPS 1.07 won, respectively, and the corresponding PE will be 1.30 15.03X/11.58X/9.53X. It is recommended to focus on the growth rate of LCD TV and the progress of LED products. Risk tip: the sustainability of the order is lower than expected.
