The omni-directional customer system helps the company to grow. Since its inception, the company has focused on the production and sales of LCD modules. After years of accumulation, it has obtained supplier certification from many mainstream manufacturers at home and abroad, and established close cooperative relations with various mobile phone manufacturers, ODM manufacturers and panel manufacturers. The products are used in Huawei, Samsung, XIAOMI, OPPO, vivo and other major terminal manufacturers at home and abroad. The company has ploughed the market for many years and has formed a solid foundation for sustained and stable development through the establishment of an omni-directional customer cooperation system.
Product structure continues to optimize, the volume of high-end products to lead the development of the company. The company continues to promote the vertical integration of the industrial chain, improve the layout of the whole industrial chain, deepen product cost control, market promotion, timely delivery and other advantages. At the same time, increase R & D investment, complete the establishment of high-end equipment and camera production line, the gradual release of new production line capacity is expected to help the company's brand upgrade to a high-end direction, leading the company's growth.
The market pattern of LCD screen has been reshaped, and the prospect of extending the company's business to OLED is expected. Japanese and Korean manufacturers have withdrawn from LCD-related production lines since 2019, and the distribution pattern of supply and demand and production capacity in the LCD panel market is facing a major adjustment. The company continues to deepen the advantages of integration, while actively responding to market demand, complete the MiniLED technology reserve and achieve small batch trial production of OLED. The company's business scope extends from the traditional LCD field to OLED, which conforms to the needs of the industry to ensure the company's long-term development.
With the acceleration of multi-penetration, new business opens the room for the growth of the company. Affected by downstream demand, the increase in multi-photo penetration in the mobile phone market has become an inevitable trend. According to the rising sun big data, global camera shipments are expected to reach 7.5 billion in 2021. Following the development trend of the industry, the company has expanded its business layout into the camera market, and has reached cooperation with Huawei, Samsung, Wentai, Huaqin, Chuanyen and other brands with the industry's leading platform. The camera business constitutes the company's main revenue increment, and it is expected to continue to make efforts to help the company grow.
Profit forecasts and investment recommendations: we expect annual income of 10.2 billion / 14.8 billion / 19.2 billion in 20-21-22 and net profit of 270 million / 430 million / 600 million in 20-21-22. At present, the market capitalization corresponds to the PE of 23x/14x/10x, which is lower than the comparable company valuation 32x/21x/17x, covering it for the first time and giving "buy".
Rating.
Risk prompt events: intensified market competition, high customer concentration, lower-than-expected downstream demand, the risk that the public data used in the research report may lag behind or not updated in a timely manner, and the risk that the release of new production line capacity is not as fast as expected.
