预计年内供货UTG 产品超百万台，保持扩产节奏彰显发展信心。子公司东信光电为搭载国内可折叠手机的首家 UTG 量产企业，已和国内外手机品牌巨头建立了深厚的业务合作关系并已获得国内主要头部品牌客户的项目定点，23 年内预计将为客户提供过百万台 UTG 产品。2023 年 6 月，公司购买 150 亩土地用于东信光电产能扩张。In the first half of the year, the company's revenue rose about 5 per cent year-on-year to 3.37 billion yuan, net profit fell about 40 per cent to 220 million yuan, and gross profit margin fell 9.0pct to 12.2 per cent. Revenue in the second quarter rose 27% year-on-year to 1.9 billion yuan, gross profit margin fell 4.5pct to 10.2% month-on-month, profitability declined.
Firm future strategic direction, the proportion of revenue of automobile business is increasing year by year. The company has a complete vehicle industry chain, covering vehicle Sensor, vehicle touch module, vehicle cover plate, vehicle touch display integrated module and other products. According to the information disclosed by the company in January 23, vehicle business accounts for more than 50% of the total business, and automotive electronics business has become the most important strategic development direction of the company in the next few years. In the first half of 23 years, the company maintained high-intensity R & D investment, made a variety of technical achievements such as 3D vehicle curved cover plate and dazzling color display, and obtained a number of 3D vehicle projects, with orders of billions of yuan; the company quickly laid out and installed G4.5 generation line to solve the tense dilemma of Sensor, the core component of the vehicle screen, and has now achieved full mass production. The mass production of new products and the rapid layout of production capacity ensure the continued development of automotive electronics plate business.
VR display module business is at the top of the industry, and the latest Meta Quest3 product supplied by the company is expected to be available in Q3. The company's VR business starts early with strong technology, and currently provides VR Quest2 display modules for Meta and VR head display modules for domestic VR giants; according to the semi-annual report, the company is providing Quest3 VR head display module products for Meta, and on this basis to speed up the research and development of high-generation VR head display modules equipped with microled. It is expected that with the launch of new products such as Quest3, the company's VR display module business is expected to usher in new growth this year.
It is expected to supply more than one million UTG products this year, maintaining the pace of production expansion shows confidence in development. Dongxin Optoelectronics, a subsidiary of Dongxin Optoelectronics, is the first UTG mass production company with foldable mobile phones in China, has established a deep business relationship with domestic and foreign mobile phone brand giants and has won the project target of major domestic brand customers, and is expected to provide customers with more than one million UTG products within 23 years. In June 2023, the company purchased 150 mu of land for Dongxin optoelectronic production capacity expansion.
We forecast that the company's earnings per share in 23-25 years will be 0.26 won 0.31 pm 0.38 yuan respectively (the original forecasts for 23-24 years are 0.47 yuan and 0.55 yuan respectively, mainly due to the market environment). According to the comparable company's 23-year average 30 times PE valuation, we give the target price 7.80 yuan and maintain the "buy" rating.
Risk hint
Consumer electronics and automotive business progress is not as expected; UTG penetration is lower than expected; market competition aggravates risks.
