Incident: The company released its 2023 annual report, achieving a total operating income of 517 million yuan, an increase of 12.73% year on year; net profit attributable to shareholders of listed companies was 122 million yuan, up 8.16% year on year; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 75.519 million yuan, down 5.31% year on year.
Light-emitting materials are shining brightly, and domestic alternatives can be expected. During the reporting period, the company's organic light-emitting materials achieved operating revenue of 318 million yuan, a year-on-year increase of 49.42%, and gross margin increased 13.35 percentage points. The company focused on developing the organic light-emitting materials market, and organic light-emitting materials revenue increased 49.42% year-on-year; in terms of material import, G', R', and B' materials completed production line introduction and stable supply; packaging material products have been stably supplied to production lines; PSPI materials have passed mass production tests and batch supply for some customers.
Red and green light-emitting layer materials In customer verification, some materials have passed verification, and it is expected that stable supply will be achieved in the future, and the materials business has shown good development resilience. Benefiting from the gradual increase in the domestic replacement ratio of light-emitting materials, the company's light-emitting materials business is expected to maintain steady growth.
Equipment revenue is stable, and it is deeply tied to downstream panel manufacturers. Evaporation source equipment achieved operating revenue of 199 million yuan, a year-on-year decrease of 19.01%, and gross margin remained stable; the company continued to maintain its leading edge in the segment, fully exploited the sixth-generation evaporation source market, and initially completed the transformation from a single evaporation source business to production line transformation and perovskite preparation. During the reporting period, the subsidiary Shanghai Shengyi successfully completed the contract signing for the Xiamen Tianma Phase II and Chongqing BOE Phase III additional evaporation source projects. At the same time, the company actively tracks the news of downstream panel manufacturers, assists in improving evaporation source equipment and related spare parts, and completes the acceptance of the Xiamen Tianma Phase I and Chongqing BOE Phase III evaporation source projects as planned. With BOE's 8.6-generation AMOLED production line construction, the company is expected to take the lead in benefiting and further enhance its competitiveness.
Leading domestic evaporation source equipment, pioneer in domestic replacement of light-emitting materials. Established in 2005, the company spans Changchun and Shanghai. It is a high-tech enterprise specializing in independent R&D, large-scale production, sales and service of organic electroluminescent materials (OLED materials) and core equipment for the new display industry. In terms of organic light-emitting materials, the company is one of the few domestic companies that can independently produce organic light-emitting material terminal materials, and is an OLED organic material manufacturer with advanced technology in the industry. The OLED materials produced by the company have been supplied in batches to well-known domestic flat panel display manufacturers. In the field of evaporation source equipment, Olaide has also broken foreign technical barriers, obtained a voice in core technology, and successfully achieved independent R&D, industrialization, and import substitution of this core component.
Profit forecasting and investment advice. EPS is expected to be 1.29 yuan, 1.84 yuan, and 2.59 yuan respectively in 2024-2026, corresponding to dynamic PE 23 times, 16 times, and 12 times, respectively. The company has a high market share in evaporation source equipment in the OLED industry, and is expected to be the first to benefit from the 8.6-generation domestic construction; the company's light-emitting materials are expected to benefit from the increase in the penetration rate of localized alternatives. First coverage, 35 times PE, “buy” rating, target price 45.15 yuan.
Risk warning: Risks such as downstream demand falling short of expectations, sharp rise in raw material prices, and insufficient production capacity investment.