Event: Shenzhen Liande Automation equipment Co., Ltd. (hereinafter referred to as "the company") recently received a "bid winning notice" from China Electronics Import and Export Co., Ltd., confirming that the company has become the winning bidder of the sixth generation flexible AMOLED module production line project (hereinafter referred to as "the project") of Guangzhou Guoxian Technology Co., Ltd., with a total bid amount of 121540000 yuan.
Comments:
The company is the leading enterprise of panel module equipment and enjoys OLED dividend. Since its inception, the company has focused on the R & D, production, sales and service of flat panel display automation module assembly equipment, accumulated profound technical reserves and rich market experience, and established a good market image and brand popularity. At present, the company has established good cooperative relations with many well-known customers, such as Foxconn, Beijing Oriental, Huawei, Apple Inc, Deep Tianma, Lance Technology, Huaxing Optoelectronics, Changxin Technology, Lixun Precision, Vicino, BYD and many other well-known customers. accumulated stable and high-quality customer resources.
Closely around the panel industry, the company has formed a strong industry position, and the products are constantly improving. It is expected that the relevant orders will continue to land, and will obviously benefit from the expansion of the panel industry in the future, especially OLED panels. In recent years, Chinese manufacturers such as BOE, Tianma and Huaxing Optoelectronics have added codes to the OLED field. OLED is organic light-emitting diodes, and its main type is AMOLED compared to the more traditional TFT-LCD. It does not need to be equipped with a backlight module, only a very thin organic coating and glass cover or flexible organic substrate can be used to image, which can make the phone lighter, thinner, better texture and faster reaction speed. In addition, based on the characteristics of self-luminescence, the screen can have a wider viewing angle and higher resolution. At the same time, compared with the LCD screen, AMOLED has a relatively low power consumption and has a good development prospect. We expect the industry to have nearly 150,200 OLED module line expansion plans in the next 2 years, and the overall market is expected to reach 30 billion yuan. According to the company's current business scale, there is still a lot of room for development. The winning project, combined with the previous winning bid BOE, reflects the company's relatively strong competitive strength.
Profits fell slightly in the first half of the year due to changes in tax rates.
The revenue end of 2020H1 increased 2.3% from the same period last year, and its net profit reached 37 million yuan, down 12.28% from the same period last year. The profit side has declined, mainly due to the fact that the qualification of national high-tech enterprises is in progress. Due to the principle of prudence, the company will pay a tax rate of 25% for the time being, and once it is approved, the company will pay a tax rate of 15%.
Dingzeng will expand production capacity again, and automotive electronics, large size, semiconductors and other directions will go hand in hand.
The company plans to issue shares to specific objects to raise no more than 800 million yuan, of which 560 million yuan is used for "Automotive Electronic display Intelligent equipment Construction Project", "large-size TV Module Intelligent equipment Construction Project" and "Semiconductor closed Test Intelligent equipment Construction Project". The operating income of the above projects is expected to be 320 million yuan, 228.5 million yuan and 230 million yuan respectively after reaching production. The remaining 240 million yuan will replenish the working capital. Nie Quan, the actual controller of the company, intends to subscribe for the company's non-public offering shares in cash, with a total subscription amount of not less than 15 million yuan (including capital) and no more than 30 million yuan (including capital).
The company is actively engaged in the R & D and development of large-size module bonding equipment and TV module, and successfully achieved production and sales. As of the middle of this year, the issuer has accumulated 110.3971 million yuan of orders for large-size TV and automotive electronic flat panel display. In the field of semiconductor equipment, the company is engaged in the development of semiconductor flip equipment (completed) and semiconductor COW packaging equipment, which has laid a good technical foundation for the company to enter the semiconductor field.
Profitability forecasting and valuation. We believe that the company's strategy is clear, deep ploughing panel manufacturing industry, in recent years, continue to invest in research and development, respond to changes in market demand, firmly optimistic about the future development of the company.
We estimate that the 20-21 net profit of the shareholders belonging to the parent company will be 0.88 and 177 million respectively, corresponding to a valuation of 57 and 28 times, and maintain a buy rating.
Risk tips: OLED production line, LCD large-scale production capacity progress is not as expected, equipment import replacement rate is not as expected.