Performance slightly lower than expected, in line with the internationalization strategy to increase investment in research and development, the company released a semi-annual report, first-half revenue of 814 million yuan, an increase of 24.4% over the same period last year, and net profit of 71.98 million yuan, an increase of 21.14% over the same period last year, which was in line with the previous forecast range of 10%. Slightly lower than expected, on the one hand, the company's gross profit margin declined slightly due to the rise in the cost of packaging raw materials in the first half of the year, 0.9pct. On the other hand, due to the international development strategy, the company's R & D investment increased by 46.75% to 37.28 million yuan. In the first half of the year, the company's overseas income was 120 million yuan, an increase of 53.34% over the same period last year, and the overseas gross profit margin increased 3.25pct. The company's cooperation with a large number of well-known customers in the international industry is progressing smoothly, which shows that the internationalization strategy has achieved remarkable results and is expected to enter the supply chain system of world-class enterprises in the future.
Small and medium-sized backlights benefit from comprehensive screens, while large-size backlights benefit from the transfer of LCD industrial centers. The income of backlit products in the first half of the year is 567 million yuan, an increase of 16.66% over the same period last year, accounting for 69.58% of revenue, with an overall yield of 99.13%. Thanks to the light and thin backlight of small and medium-sized sizes, the improvement of high color rendering technology, the steady growth of small and medium-sized income and market share, the stable leading position, and the penetration of smartphone comprehensive screen technology in the second half of the year, higher performance requirements for backlit products will be put forward. At the same time, the large-size backlight industry benefits from domestic panel manufacturers BOE, Huaxing Optoelectronics and CLP Panda in the next two years to vigorously build high-generation production lines of 8.5G and above, in order to cope with the accelerated increase in TV size and undertake the transfer of LCD industrial center, which will open up the market space of domestic LED large-size backlight industry. With outstanding cost and quality control ability, the company has successfully cut into the supply chain of BOE, Shen Tianma and other front-line manufacturers in the past 16 years.
The progress of LED lighting is gratifying, actively welcoming the cycle of high prosperity in the industry.
In the first half of the year, the revenue of lighting LED products reached 147 million yuan, an increase of 97.9% over the same period last year, the comprehensive yield of the products reached 98.62%, and the gross profit margin increased 0.29pct over the same period last year. The company has established a good brand image in the market by virtue of its quality advantages, and its products are widely exported to Europe and the United States and other medium-and high-end markets. According to the company's semi-annual report, so far the company has successfully developed a number of high-quality customer resources, and obtained the long-term trust of strategic customers, and is gradually becoming a leading brand in the industry. On the basis of the uptrend of the domestic LED industry and the national 13th five-year LED plan to provide a deterministic policy environment for the local LED lighting market, the company's lighting business will likely double its performance growth for the whole year.
Small spacing, automotive LED and other businesses are progressing smoothly, maintain the buy rating!
On the basis of expanding and strengthening the traditional backlight main industry, the company actively promotes various new businesses in order to achieve the goal of 10 billion yuan in revenue as soon as possible: the company's small spacing packaging products have been on the market since the second half of 16 years, and this year's production capacity is expected to reach 500KK/ month, automotive products, optical film, optical device packaging will also gradually buy the harvest period. We maintain 17-19 net profit of 210 million yuan, 290 million yuan, 390 million yuan estimated, maintain 17 years 35-40 times PE, corresponding to the target price of 5.9-6.7yuan, reiterate the buy rating!
Risk hint: the growth rate of large-size backlit products is lower than expected, and the speed of new business expansion is lower than expected.