Key points of investment
Deeply cultivate the field of intelligent display and achieve a leading position in the industry. The company was founded in 1995 and is one of the earliest domestic manufacturers dedicated to flat panel display terminal products. After 28 years of accumulation, it has now become a leading enterprise in the field of global smart display products, focusing on providing customers with deeply customized and differentiated flat panel display products, mainly including smart interactive tablets, professional display products, innovative display products, and smart TVs. The company mainly sells products overseas through the OEM model, while the domestic market mainly develops its own brand. 2023H1 accounts for 83% of export revenue.
Intelligent interactive display: IFPD is expected to improve, and professional innovation will enable growth. Thanks to continued investment in overseas education informatization and increased demand for upgrading, global smart interactive tablets are expected to achieve steady growth in the long term. The company's IFPD products are mainly sold to Europe and America, and downstream customer market position is leading. As overseas inflation mitigation and demand recovers, the company's IFPD shipments will experience significant improvements; the company's professional and innovative display products are rich in application scenarios, and the segmented e-sports display, medical display, mobile screen and other industries are highly prosperous. The company continues to enrich its product matrix and accelerate product penetration in the future; In addition, the company has set up a wholly-owned subsidiary to enter the NEV sector. Currently, mirror display products have won the bid for a global smart high-end car brand cooperative development project. As the business layout gradually deepens, the company's revenue is expected to rise to the next level.
Smart TV: Steady operation, the cornerstone of performance. The company adopted a differentiated market strategy, mainly focusing on third-world countries with low smart TV penetration rates. It has formed a good cooperative relationship with the local LocalKing brand, and overall sales have maintained steady growth. Furthermore, considering that events such as the Olympics and the European Cup in '24 may accelerate the release of demand, it is expected that the growth rate of the company's smart TV business will increase further.
Investment suggestions: Benefiting from continued investment in overseas education informatization construction and increased demand for updates, the company's IFPD business is expected to improve. The market space for professional and innovative display products is broad, demand is relatively high, and the medium to long term is expected to continue its high growth trend. The smart TV business is expected to maintain steady growth under a differentiated strategy, and the company's future revenue performance is expected to grow rapidly. Net profit due to mother in 2023-2025 is estimated to be 11.91/15.07/1,749 billion yuan respectively, up -21.4%/26.5%/16.1% year-on-year. It was covered for the first time, and an increase in holdings was given a rating of -B.
Risk warning: Market demand falls short of expectations, performance of new products falls short of expectations, sharp rise in raw material prices, adverse fluctuations in the RMB exchange rate, unfavorable fluctuations in sea freight prices, intensification of market competition, etc.