Core views:
The company is a leading supplier of intermediate and back-end module equipment for new semiconductor display panels in China. The company's products cover AMOLED screen segments and module segment processes. The product range includes equipment such as large laminating (lamination/decoupling, etc.), bonding, and AoL testing. The technical level is comparable to Japan and South Korea. According to the company's official website, the company's customers are well-known companies in the panel and 3C fields, including Apple, Foxconn, BOE, and Huawei. According to the company's financial report, the company actively developed overseas business and achieved overseas revenue of 102 million yuan in '22, +237.7% over the same period, a record high.
Equipment companies continue to benefit from panel technology iteration+the rise of new product applications such as XR. On the demand side, high-end mobile phones, large in-vehicle screens drive the OLED penetration rate, and new products such as XR drive the gradual commercialization of new display technologies such as Mini/Micro; on the supply side, according to BOE's capital investment announcement, BOE plans to invest 63 billion yuan to introduce the G8.6 large AMOLED line by the end of 23. Equipment companies continue to benefit from new technology changes, and the company continues to carry out technical layout in the fields of XR and in-vehicle displays; according to the announcement of the company's bid winning notice, the company publicly disclosed order amounts of 4.2, 3.4, and 990 million yuan respectively; according to the company's financial report, the company achieved a net profit of 130 million yuan in 23Q1-3, +163.7% over the same period last year. The profit surpassed last year and reached a record high, and the growth trend is expected to continue.
New businesses such as semiconductors and lithium batteries have received orders, and the second growth curve is beginning to take shape. According to the company's financial report, in '22, the company has formed sales orders in the field of semiconductor packaging and testing equipment and lithium battery assembly equipment, and the company is gradually improving in the high-end manufacturing field with its technical advantages. Meanwhile, according to the company's financial report, the company's four fund-raising projects with convertible bonds and fixed increases are expected to reach the intended state of use in 23-24, with a total revenue target of 1.23 billion yuan.
Profit forecast and investment advice: The company is expected to achieve net profit of 1.72, 2.50, and 343 million yuan in 23-25, and EPS of 0.97, 1.41, and 1.93 yuan/share, respectively. Referring to comparable companies, give the company a 24-year 30xPE, corresponding to a reasonable value of 42.19 yuan/share, and give it a “buy” rating.
Risk warning: market competition risk; downstream demand fluctuation risk; capital raising investment risk, etc.