2024 年公司持续拓展国际渠道，半年报披露，公司2024 年上半年海外营收21.71 亿元，同比增长19.34%，归母净利润1.00 亿元，主要因为2024 年上半年，权益法确认的投资收益亏损 5,268万元所致。若剔除投资损益所带来的波动影响，2024 年第二季度归母净利润同环比均有所增长。公司实现综合毛利率32.08%，同比增加2.23 个百分点，主要系毛利率较高的海外业务占比提升。Incidents:
The company released its 2024 semi-annual report. During the reporting period, the company achieved operating income of 3.406 billion yuan, an increase of 3.26% over the previous year; realized net profit of 0.1005 billion yuan, a year-on-year decrease of 54.60%, after deducting non-return net profit of 82.83 million yuan, a year-on-year decrease of 68.90%.
The industry continues to pick up, and overseas business is progressing smoothly
The company continued to expand international channels in 2024. The semi-annual report revealed that the company's overseas revenue for the first half of 2024 was 2.171 billion yuan, up 19.34% year on year, and net profit attributable to mother was 0.1 billion yuan, mainly due to a loss of 52.68 million yuan in investment income confirmed by the Equity Law in the first half of 2024. Excluding the effects of fluctuations caused by investment gains and losses, net profit to mother increased in the second quarter of 2024 compared to the same period last year. The company achieved a comprehensive gross profit margin of 32.08%, an increase of 2.23 percentage points over the previous year, mainly due to an increase in the share of overseas businesses with high gross margins.
The global LED display market continues to grow, and the company's product competitiveness is outstanding. According to TrendForce data, the global LED display market is expected to have a compound annual growth rate (CAGR) of 13.78% from 2021 to 2026, 23.65% for small-pitch displays, and 40.08% for micro-pitch displays. As technology advances and costs decrease, the application of LED displays will expand from large customers to small and consumer markets.
According to the TrendForce “2025 Global LED Display Market Outlook and Price Cost Analysis” report, according to all LED display revenue statistics of global brand manufacturers in 2023, the company ranked first in the world in terms of sales and shipping area in the LED display field, with a global market share of 13.1%, and outstanding competitiveness.
Mini/Micro LED production capacity was released, and the full coverage of indoor and outdoor application scenarios was disclosed. The company continued to improve technologies such as COB and MIP and Mini/Micro LED products, overcome a series of technical problems such as display effect consistency, package yield, repair, testing, and driving in the Mini/Micro LED field, complete technical breakthroughs in COB and MIP packaging products, and achieve Mini/Micro LED products covering the full range of P0.3-P1.8 products and Large-scale mass production. In the first half of 2024, the company increased investment in MIP technology research and development, achieved mass production of MIP 0404 series products, and plans to expand MIP production capacity to 6000 KK per month by the end of the year.
Investment advice:
We expect the company's revenue from 2024 to 2026 to be 8.077 billion yuan, 9.047 billion yuan, 10.132 billion yuan, and net profit to mother of 0.272 billion yuan, 0.367 billion yuan, and 0.751 billion yuan respectively. We will give 24 times PE over 24 years, corresponding to a target price of 5.99 yuan for six months, and maintain a “buy-A” investment rating.
Risk warning:
Industry demand falls short of expectations; new product development and introduction falls short of expectations; market competition intensifies.
