Core views:
According to the company's latest 23-year performance forecast, the company achieved net profit of 165-185 million yuan in 23, an increase of 115%-141% over the previous year, and net profit after deducting non-return to mother of 148-168 million yuan, an increase of 149%-183% over the previous year. The performance is in line with expectations.
Steady growth continued in 23Q4. Based on the median performance range, the Q4 company achieved net profit of 47 million yuan, an increase of 68% over the previous year, which was basically flat from month to month. The company's profit margin has continued to recover since 23 years, and continues to grow at a high rate.
The panel industry continues to recover. The company is a leading supplier of intermediate and back-end module equipment for new semiconductor display panels in China. The products cover AMOLED screen segments and module segment processes to achieve import substitution. The customers are well-known companies in the panel and 3C fields. According to the 23-year performance forecast of Rainbow Co., Ltd., an upstream panel substrate company in the industrial chain, it achieved net profit of 56-680 million yuan and net profit of non-return to mother in 23 years, reversing losses over the previous year, further verifying the trend of continuous recovery in the panel industry since 23 years.
New applications and new technology iterations. 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, domestic high-generation large-size production lines have begun a new round of production expansion, a generation of process generation equipment, and the company continues to carry out a leading technical layout in the fields of XR and in-vehicle displays, directly benefiting leading equipment companies.
The new semiconductor business is gradually maturing. According to the company's annual report for the year 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.
Profit forecast and investment advice: The company is expected to achieve net profit of 1.77, 2.50, and 343 million yuan in 23-25, and EPS of 1.00, 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 42.21 yuan/share, and give it a “buy” rating.
Risk warning: market competition risk; downstream demand fluctuation risk; capital raising investment risk, etc.