Event tracking:
The company publishes its 2013 semi-annual report. The company's operating income in the first half of 2013 was 753 million yuan, an increase of 93.84 percent over the same period last year; the net profit attributable to the owner of the parent company was 5.1762 million yuan, up 113.4 percent over the same period last year; and basic earnings per share was 0.0596 yuan, an increase of 111.34 percent over the same period last year. The net assets belonging to listed companies were 750 million yuan, an increase of 114.83% over the same period last year. There are no plans to distribute cash dividends, bonus shares or increase share capital with provident fund in this period. The company's operating performance loss from January to September 2013 is-5 million yuan-million yuan.
Event analysis:
The company's main business is developing well, and the touch screen market is developing rapidly. The company's main business is black-and-white display module, touch display integrated module, cover glass and other product research and development, design, production and sales. With the rapid development of touch screen industry in recent years, projected capacitive touch screen has become the mainstream technology in the market. Within the capacitive touch technology, various technology routes are also competing with each other, and the competition situation has begun to shift from the competition between GG and GF/GFF to the competition between external (OGS, TOL) and embedded (On-Cell, In-Cell). The company's main business is developing well and is involved in all kinds of materials, which will benefit from the rapid growth of the touch screen market for a long time.
The company has a complete layout and has the advantage of integration. The company has basically completed the layout of the industrial chain and established product businesses such as glass processing, touch screen Sensor, touch screen module, display module, Cover Glass and full-fit display module. At present, the company's business vertically covers the whole industry chain and can provide multi-form products. On the one hand, it can provide downstream customers with one-stop support to save costs, and at the same time, it can further improve the company's own industrial chain control and product quality control capabilities. And with the company's active investment in touch screen product systems in the past two years, it has begun to promote embedded capacitive touch screen (On-cell) product development and resource layout, combined with the complete external capacitive touch screen product line in the previous layout, the company's touch product system has fully covered the mainstream touch technology in the market and has the service advantage of meeting customers' all-round product needs. Enterprises that have a complete layout in the touch panel and module, display panel and module industry will always maintain an advantage in the technical route competition of the industry.
Profit forecast and investment advice:
Profit forecast and investment advice. The company mainly deals with materials related to touch display devices, benefiting from the broad market space of the touch screen market in the future, the company's business will benefit from the huge demand of the industry for a long time. And after nearly two years of continuous investment, the current business layout has been basically completed, with the advantages of customer integration and all-round product needs and services. we are optimistic about the company's future development prospects, but the company's gross margin is still at a low level. give the company a "neutral" investment rating for the first time.
Investment risk:
Risk that downstream demand falls short of expectations