The company successfully reversed its losses by issuing a forecast of results for the first quarter of 2013. The company announcement expects to achieve a net profit of 2 million yuan to 3 million yuan for shareholders of listed companies in the first quarter of 2013, compared with a loss of 6.6 million yuan in the same period last year and 55.71 million yuan in the fourth quarter. The company has successfully reversed losses in the first quarter of this year, which is in line with our previous expectations.
The turnaround in the first quarter has laid a solid foundation, and the annual performance is expected to achieve substantial growth. The company turns losses into profits in the first quarter, and the absolute value of the performance does not matter, because the electronic touch manufacturers invest a lot in the early stage, and the yield, production capacity climbing and product introduction are the key. Once the improvement of the yield and the introduction of products are completed, the performance is very likely to explode. This can be seen from the rise of the foreign forces of Ofeiguang in 2012, and the company successfully reversed its losses in the first quarter under the circumstances of heavy losses last year. Its significance lies in that the company has made a major breakthrough in capacity climbing and yield improvement, and the certainty of substantial growth in annual performance has been initially confirmed.
One year "investment", one year "run-in", 2013 ushered in the "harvest time". The company began a large-scale investment in the production line in 2011 and saw a large scale at the beginning of 2012, but due to the overall running-in stage, there was a large loss for the whole year. Yield improvement and capacity climbing are generally one-way growth, once the break-even point, the overall revenue will be multiplied, the company achieved a big turnaround in the first quarter, we have reason to believe that the company will usher in a "harvest period" in 2013. at the same time, high order certainty will provide protection for the outbreak of performance.
"Vision" + "strength" casts the future growth of the company. We believe that the future growth of the company lies in the dual factors of "vision" and "strength": the company was very optimistic about the industry in the early stage and put into the OGS production line in advance. At present, it seems that 2013 will be the "OGS year", and the company's "vision" has been confirmed. After more than two years of business adjustment, the company has realized the integration of the touch industry chain. After successfully achieving yield improvement and capacity climbing, the company has become quite competitive in the industry and will fully enjoy the high prosperity of the industry in the future.
Maintain the "overweight" rating. Benefiting from the changes in the downstream consumer electronics demand structure, the OGS solution ushered in a good opportunity for development. We are optimistic about the growth potential of the company's touch screen products, and are expected to achieve earnings per share of-1.70,0.81 and 1.18 yuan from 2012 to 2014. The current stock price corresponds to 21 times PE in 2013 and 15 times PE in 2014.
The advantage of the integration of the company's industrial chain is conducive to coordination and integration, improve efficiency and reduce costs, and the realization of turnround and rapid growth in 2013 has been preliminarily confirmed, and the future growth is worth looking forward to. The company has obvious advantages over Laibao Hi-Tech and Changxin Technology. Continue to maintain the target price of 20.25 yuan.