On the evening of November 6, the company announced that in order to prepare for the construction of an ultra-wide TFT-LCD polarizer production line project with a width of 2500mm, the company's subsidiary Sheng Bo Optoelectronics signed a 5-year "Technical Cooperation contract" with Jinjiang Group and Kunshan Jimei on the introduction of 2500mm polarizer production line technology from Nippon Electric Co., Ltd. The contract stipulates that Sheng Bo Optoelectronics and Kunshan Chi Mei, as the object of technical support, signed an agreement with Japanese electrician, which is responsible for technical support, and Jinjiang Group as the guarantee object to ensure the performance of both parties. The technology license fee stipulated in the contract is not more than 15 billion yen (equivalent to about 869 million yuan), and Shengbo Optoelectronics and Kunshan Jimei each bear 50%.
The company mentioned that the signing of this contract is conducive to the construction of the company's proposed Line 7 project, provides technical support for the company's super-large polarizer business, and helps to improve the production efficiency and profitability of Shengbo Optoelectronics.
[comments]
Introduce the world's advanced technology to accelerate the upgrading of polarizer production line. As the key material of flat panel display industry, polarizer is widely used in consumer electronics, instrumentation, photographic equipment and other fields. The company has 5 production lines, products covering downstream TN,TFT,OLED, touch screen and other areas, has become Huaxing Optoelectronics, BOE, Longteng Optoelectronics and other well-known panel enterprises qualified suppliers. The sample of the project of Line 6 under construction has passed the reliable test run and can be trial-produced at the end of the year, which is speeding up the development of new models for customers, actively preparing to increase the speed and volume, and reduce the unit cost. At present, the company is planning to build Line 7 project, and the project has been supported by 30 million yuan of special funds and related policies for the national super-large TV polarizer industrialization project. Nippon Electric, as one of the world's top 500 companies with the most advanced polarizer manufacturing technology, will send experienced technicians to provide technical services for the company's 2500mm polarizer Line 7 project, which will greatly enhance the company's technology accumulation in super-large polarizer and accelerate the upgrading of polarizer production line.
The global panel localization is accelerated, and the demand for polarizer is exuberant. At present, the mainland is carrying out large-scale new panel production line construction, and the global panel focus is gradually shifting. By the first half of 2017, there were 19 low-generation LCD production lines of Chinese mainland with a production capacity of 2.563 million pieces per month, eight high-generation LCD production lines of 8.5 with a production capacity of 720000 films per month, and eight high-generation LCD production lines under construction and planning with a production capacity of 840000 pieces per month. Upon completion, China will become the largest panel production place in the world. According to the experience of Japan and South Korea, the transfer of panel production capacity will lead to the transfer of upstream polarizer production capacity, according to IHS forecast, the domestic demand for polarizer will increase from the current 125 million square meters to 220 million square meters, the current production capacity of 150 million square meters is far from meeting the demand. Polarizer is a high barrier technology industry. Shengbo Optoelectronics, as one of the few domestic enterprises that can produce on a large scale, is expected to benefit from the development of the industry for a long time. In addition, the company customer BOE OLED project has achieved mass production, OLED market space is huge, the company line 6 has been able to meet the needs of OLED products, the future is expected to cut into the BOE OLED production line.
The improvement of the polarizer product yield and gross profit margin has accelerated, and the profitability has been improved. The company's revenue in the first three quarters increased by 24.77% compared with the same period last year, and the net profit increased by 164.28%. We are optimistic about the long-term development of the company. We estimate that the company's earnings per share in 2017 and 2018 will be 0.12, 0.23 and 0.37 yuan, respectively, and the corresponding price-to-earnings ratio PE will be 100.29, 52.26 and 32.73, which will be rated as "overweight" for the first time.
[risk Tip]
The progress of polarizer production line is not as expected.
The demand for polarizer is lower than expected.
Policy risk
