BOE: Lying on the salary and tasting the courage to become a great cause, panel giants to forge ahead
Summary: Based on DSH strategy, industrial transfer is beginning to bear fruit. Based on DSH strategy, the company leads the development of domestic panel industry. With the huge investment in the early stage and the year-on-year mass production of the production line, the company's production capacity has been continuously improved, which has also provided the company with time for technological development and reserve, and has accumulated enough experience for the company in the construction of new display technology production lines in the future.
Based on DSH strategy, industrial transfer is beginning to bear fruit. Based on DSH strategy, the company leads the development of domestic panel industry. With the huge investment in the early stage and the year-on-year mass production of the production line, the company's production capacity has been continuously improved, which has also provided the company with time for technological development and reserve, and has accumulated enough experience for the company in the construction of new display technology production lines in the future. In the process of undertaking industrial transfer, Chinese panel companies have begun to increase significantly in terms of quantity, market share, and shipping area. BOE has become one of the important leaders in the global semiconductor display field in collaboration with other panel manufacturers in my country.
product prices determine the level of gross margin, large-size panels still have profit margins The average price of the company's shipped products and gross margin have a highly positive correlation, the company's average price per product can be used as one of the indicators of the trend of gross margin change. From the perspective of supply and demand, it is the general trend that small-size mobile phone panels are replaced by OLED. Large-size LCD panels are still the mainstream products. BOE, which has more high-generation lines, will complement the large-size end product line, increase the proportion of high-end products, seize the high-end market, and further enhance the company's overall profitability.
the rise of the leader, the OLED era set sail again. The development process of the company and Samsung Electronics are similar. They are all supported and helped by the government in the early stage of industrial development. And took a counter-cyclical approach to investing against the trend. In addition, my country has a broad domestic demand, a large number of downstream supporting industrial chains and a steady stream of talent advantages, which are destined to be able to continue to develop and grow. Entering the OLED era, the company's leading layout, technology reserves domestic first, dual technology route layout to lock the future large, medium and small size AMOLED market demand, BOE will continue to be strong.
earnings forecast and investment recommendations in the first quarter of 17 panel industry off-season is not weak background, panel manufacturers performance is expected to hit a new high. We expect the company's net profit for 17-19 years to be 62.05/72.80/9.675 billion yuan, respectively, and the corresponding EPS to be 0.18/0.21/0.28 yuan. Taking into account the company's leading attributes, we give the company a 17-year price-to-earnings ratio of 28 times, corresponding to a reasonable valuation of 5.0 yuan. Maintain a "buy" rating.
