23Q3 performance increased significantly year-on-year, and the comprehensive layout showed the special equipment business
The company achieved operating income of 113 million yuan in the third quarter of 2023, up 12.57% year on year, down 45.10% month on month, and achieved net profit of 08 billion yuan, up 129.62% year on year and 66.93% month on month; gross sales margin was 37.94%, down 0.86 pcts year on year, up 6.72 pcts month on month; net sales margin was 5.21%, down 2.63 pcts year on year, down 6.03 pcts month on month. The company achieved operating income of 456 million yuan in the first three quarters, down 0.65% year on year; realized net profit of 0.3 billion yuan, down 25% year on year; gross sales margin was 31.97%, down 0.43 pcts year on year; net sales margin was 5.38%, down 2.97 pcts year on year.
The company is mainly engaged in R&D, production and sales of special equipment for flat panel displays and semiconductor devices. Currently, its main products are LCD display equipment, flexible OLED display equipment, VR/AR/MR display equipment, Mini/Micro LED equipment, silicon-based OLED micro display bonding equipment, and special semiconductor equipment.
Apple Vision Pro is driving the rapid development of the silicon-based OLED industry, and related equipment has been recognized by important downstream customers
Apple Vision Pro, which claims to be able to launch the “iPhone moment” in the XR field, is on sale soon. It will go on sale at all Apple Store offline retail stores and Apple Store online retail stores in the US. Pre-orders will begin at 5 a.m. Pacific time on Friday, January 19. According to Wellsenn XR, the most valuable component of an AVP is the display. Among them, the value of the inner screen is about 700 US dollars, and the inner screen mainly uses silicon-based OLED technology. We believe that the silicon-based OLED industry chain will usher in unprecedented opportunities. The company has a forward-looking layout in the field of VR/AR/MR display equipment. At present, the company can provide the relevant equipment required for module assembly in the VR/AR/MR process and in the post-assembly process. The products mainly include fully automatic polarizer attachment production line, fully automatic protective film attachment production line, fully automatic vacuum full laminating production line, optical film attachment equipment, and cleaning bias production line. The company's equipment has excellent performance, the adhesion yield is greater than 98%, and the accuracy can be controlled at ± 0.05mm. In addition, the company's VR bonding technology research and development work has solved various process problems. It has jointly developed vacuum full bonding equipment and POL/OCA bonding equipment with customers. The VR monocular resolution has reached 4k or above, and the adhesion yield target is as high as 99%. Currently, various functions have passed customer verification and entered the trial mass production stage. In terms of downstream customers, the company's related equipment products have been recognized by customers such as Sanli Spectrum, Goertek Co., Ltd., Hefei Vision, and Ningbo Chengmei.
The field of display equipment continues to advance, and the development of semiconductor-specific equipment accelerates
In terms of LCD display equipment, the company used existing technology to build a 130-inch fully automatic polarizer laminating production line. Using advanced defoaming and cleaning technology, the company solved the problem of large polarizer bonding medium bubble lines. In response to the growing demand for functional displays in the NEV industry, the company has developed special equipment for automotive displays.
This includes 3D curved double screen cover glass cleaning equipment to solve the cleaning challenges of large curved products. In addition, the company has perfected the entire line solution and delivery capacity through the 70-inch OLB bonding machine production line. In terms of flexible OLED display equipment, the company developed a 10/20-inch flexible OLED-POL/OCA/UTG laminating production line based on existing small-size flexible OLED bonding technology to solve the problems of flexible foldable screens, such as film peeling and warping. In the field of POL/OCA/UTG bonding technology, the company upgraded SHEET laminating technology to address the complexity of flexible foldable screen smartphones. In terms of Mini/Micro LED displays, the subsidiary Yitian Semiconductor has successfully developed a massive transfer of production equipment for Mini LEDs to partially replace imports. The subsidiary Microchip has developed third-generation MiniLED patch repair equipment and fourth-generation Mini LED direct display rework equipment. In terms of special semiconductor equipment, the company is actively committed to the research and development of new products and technologies, and has successfully developed semiconductor-related coating equipment such as wafer thinning pre-laminating machines, wafer pre-cutting laminators, and strip laminators, etc., which have been recognized by customers. Looking ahead, we believe the company can keep up with technology iterations and forward-looking R&D in the field of display equipment to gain a larger downstream market share.
Profit forecasting
It is predicted that the company's revenue for 2023-2025 will be 7.67, 9.89, 1,681 billion yuan, and EPS 0.34, 0.50, and 1.07 yuan respectively. The current stock price is 101.07, 68.2, and 31.9 times PE, respectively. In the context of the launch of the first generation of Apple Vision Pro and the warm-up of the second generation, silicon-based OLED is expected to continue to benefit as the core material for Apple Vision Pro. The company is expected to continue to be empowered as a core supplier of silicon-based OLED back-end bonding equipment, giving “purchases” ” Investment ratings.
Risk warning
Apple Vision Pro sales fell short of expectations; the cost reduction of silicon-based OLEDs fell short of expectations; the company's technology product upgrades and iterations fell short of expectations; and the competitive landscape of the industry fell short of expectations.