Matters:
Dehao Runda recently announced a plan for privately held shares, and plans to raise no more than 4.5 billion yuan to increase revenue, of which 2 billion will be used for LED inverted chip projects, 1.5 billion yuan will be invested in LED chip-grade packaging projects, 1 billion yuan will be used to supplement working capital, and it is estimated that within three years Dehao Runda's annual revenue will exceed 8 billion yuan.
Ping An's point of view:
The advantages of reversing technology are highlighted, and Dehao has taken the lead in China: LED flip chips combine the advantages of formal chips and vertical chips. They are cost-effective, and have advantages such as “withstanding high currents, good heat dissipation, uniform coating of fluorescent powder, no risk of gold wires, and easy module integration”. Flip-up technology has broad application prospects in the fields of general lighting, automobiles, high-power lighting, large-size backlights, projectors, and flashes. Major international manufacturers Philips, Cree, Osram, and Nichi have all successively selected frontal reversal technology, which fully explains the future technology trend of LED inverted chips and packaged devices. Domestic competition for formal LED chips and packaged devices has entered a heated stage, and the LED inverted chip and packaged device market is in a gap period of localization. Through this custom code reversal business, Dehao Runda's project reached a production capacity of 5 billion inverted chips per year after delivery.
Strengthening the LED packaging business and industry consolidation are worth looking forward to: global LED packaging revenue exceeded $15 billion in 2014, according to Packaged Unlimited statistics. Global LED packaging revenue is expected to grow at an average annual compound annual rate of 13% between 2012 and 2018. The rapid expansion of LED packaging and applications can effectively guarantee the absorption of the company's production capacity in this fund-raising project. After this fund-raising project is put into operation, the company will, on the one hand, thoroughly refine the needs of existing customers, increase the sales scale, and at the same time use existing customer resources to integrate sales platforms and expand business; on the other hand, it will strengthen the integration of Nace Lighting's sales channels, vigorously expand O2O lighting and smart home e-commerce platforms, achieve online and offline integration, and increase product penetration.
Investment strategy: We expect the company's revenue in 15-16 to be 59.25 billion yuan and 9.331 billion yuan respectively, the corresponding EPS is 0.26 and 0.44 yuan respectively, 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 demand market in mainland China, we are optimistic about the company's expansion prospects in the LED lighting era. After this fixed increase was completed, Dehao Runda's LED industry chain layout was further optimized. The company's performance prospects are bright, and it maintains the “Highly Recommended” rating.
Risk warning: Competition in the LED industry has intensified, and the transformation progress has fallen short of expectations.