(report producer/analyst: Guojin Securities Fan Zhiyuan, Liu Yanxue, Deng Xiaolu)
1. The world's leading intelligent interactive display equipment solution provider
. Basic situation: Focus on the field of intelligent interactive display and continuously expand emerging markets
The company is an overall solution provider for commercial intelligent interactive display equipment. It provides customers with customized commercial intelligent interaction by integrating intelligent chips, touch display technology, sensing equipment and other applications. R&D, design, production and sales services of display equipment.
Since its establishment, the company has used its rich cross-industry development experience to form a full range of advantages covering product solution design, software, hardware and firmware research and development, mold design, product testing , product supply, after-sales service and other links. With its leading product quality and service level,
has established long-term and stable cooperative relationships with many well-known domestic and foreign brand customers; its products have been sold to dozens of countries and regions around the world and have been widely recognized by domestic and foreign customers.
Main products and services:
1) Intelligent interactive display: is mainly composed of liquid crystal modules, touch modules, chips, PCBA and other components. After the display is connected to the host, the user can complete human-computer interaction by lightly touching the screen interface. . The main product types include desktop intelligent interactive displays, embedded intelligent interactive displays, large digital advertising billboards, intelligent interactive display modules, etc.
2) Intelligent interactive all-in-one machine: is mainly composed of LCD module, touch module, CPU, motherboard, memory stick, graphics card, hard disk, electronic components, power supply module and other components, which are installed by users according to their needs. The system and software can realize the function. The main product types include intelligent interactive all-in-one machines, embedded computers , POS terminals, self-service machines, etc.
product application fields:
The company's products are widely used in traditional terminal fields such as retail, finance, industrial automation , medical care, catering, express logistics, games and entertainment. Among them, retail is the main application field, accounting for 52% of revenue in 2021, followed by industrial control and financial fields, accounting for 18% and 16% of revenue respectively. In addition to the traditional application areas mentioned above,
has seized on the trend of the Internet of Everything and "Industry 4.0" era, and has taken the lead in deploying emerging markets such as smart fitness, remote conference/education, and smart cockpits. Through the acquisition of Micro touch, Taiwan Lonstar Technology and TPK's newly established subsidiary Hongtong Technology will further expand the application areas of the company's products to the fields of remote conferencing and smart cockpits, creating new growth points for the company. In 2021, the revenue proportions of industrial control, smart fitness, medical care, gaming, and other fields will be 18%, 4.5%, 2%, 2%, and 4% respectively. (Report source: Yuanzhan Think Tank)
. Financial situation: Product diversification + diversification of downstream business areas empowers high performance growth
Profitability: Business diversification strategic transformation, revenue and net profit both hit new highs, and the company’s performance enters the High growth channel.
The company's revenue growth rate was at a low level from 2016 to 2020. The main reason is that one of the company's major customers, Elo, has strengthened its cost-oriented business strategy in recent years, determined product suppliers through bidding, and continuously compressed the supplier's profit margin. Faced with the declining gross profit margin of Elo's business year by year, the company has relied on its R&D advantages and product advantages to optimize its customer and business structure. On the one hand,
has broadened its categories and strengthened the development of high-gross-margin businesses. On the other hand, it has appropriately reduced its business cooperation with Elo to reduce over-reliance on a single customer and develop balanced development towards multiple customers. In 2021, the company's sales share of Elo dropped from 48% in 2016 to about 5%, reaching a record low.
In 2021, the company achieved revenue of 1.592 billion yuan, a year-on-year increase of 33.40%; net profit attributable to the parent company was 151 million yuan, a year-on-year increase of 35.71%. Continuing the high growth trend of the previous year, revenue in the first quarter of 2022 increased by 73% year-on-year; net profit attributable to the parent increased by 111% year-on-year; non-net profit after deducting non-net profits increased by 121% year-on-year, and revenue and net profit once again hit a record high.
The high performance growth in 2021 and the first quarter of 2022 is driven by the following four factors:
1) The Micro Touch brand acquired by the company has achieved significant operating results. By integrating the company's product strategy and Micro Touch's customer resources have achieved rapid revenue growth;
2) In 2021, the company has newly opened up the sports and fitness project business, further expanded the company's product application areas, and brought new business growth points to the company;
3) The company has increased The domestic market revenue has increased by 121% year-on-year in 2021;
4) The global market has gradually recovered and demand is strong.
Revenue structure level:
1) In terms of products, the revenue share of intelligent interactive all-in-one machines with higher added value has increased year by year, rising from 9% in 2016 to 38% in 2021. The product structure has gradually become balanced, moving towards Diversified development;
2) In terms of industries, retail, industrial automation, and smart finance are the company's main downstream application areas. Through acquisitions in 2021 Micro Touch has introduced a large number of customers in the industrial field, and its revenue share in the industrial automation field has increased significantly.
In addition, in the second half of 2020, the company launched a new sports and fitness business, accounting for 4% of revenue, further expanding the company's product application areas and bringing new business growth points to the company.
R&D investment: The company is committed to strengthening the research and development of new products/new technologies, and R&D expenses are increasing year by year. In 2021,
company carried out R&D and design work on 137 new products/new projects around customer customized needs, and focused on industrial control motherboard design, near-end communication (NFConTouch), curved screen, and projection function application (Panel PC with Pico Projector) and other aspects have carried out R&D work on a number of self-research projects, further improving the company's product solution capabilities and expanding the company's product solutions to emerging application fields such as smart fitness and vehicle-mounted devices.
. Competitive advantages: Technology, production capacity and customer resource advantages build competitive barriers.
Technical side: Technology drives innovation and meets customer customized needs with deep integration capabilities in R&D, design and manufacturing. The company
has established an experienced R&D team with a deep understanding of industry technology and product applications. As of the end of 2021, the company had a total of 134 R&D personnel, accounting for 15.84% of all employees.
relies on its leading product integration design capabilities and independent research and development capabilities for automated testing equipment. The company is currently engaged in control module design, software and firmware programming, display technology, image processing technology, touch application design, product structure and mold design, heat dissipation Technology, anti- electromagnetic interference , data transmission encryption and other aspects have mastered core technologies.
As of the end of 2021, the company has obtained a total of 15 invention patents and 64 utility model patents in mainland China and Taiwan.
production end: supply chain and manufacturing base spanning both sides of the Taiwan Strait, flexible and refined production management system and perfect quality control system.
automated production capacity: distributed in Xiamen and Tainan , forming a cross-strait supply chain and manufacturing base. At present, the company's existing production capacity utilization rate is about 90%. In order to meet the company's continued growth needs, the company will promote the construction of the R&D building as planned and add 2 new production lines, which is expected to increase the annual production capacity by 480K-720K pcs; in addition, The company will also formulate BPO standards and build a production process outsourcing management system to further enhance the company's production capacity flexibility.
Flexible and refined production management system:
1) In terms of product production and testing automation, the company has achieved a higher level of automation by purchasing advanced automated production and testing equipment, and has achieved SMT patching and EDID burning. , operating system burning and other production process automation;
2) In terms of information management system, SAP has been established Multiple information systems such as ERP, MES, WMS, PLM, RMA, SRM, CRM, BAP, etc. conduct refined management on all aspects of production budget , planning, materials, warehousing, costs and expenses.
High-quality quality control: company has established a complete quality certification system and has currently passed ISO9001 quality management system, ISO14001 environmental management system, ISO45000 occupational health and safety management system , ISO13485 medical device quality management system and other system certifications , Actively prepare for the ISO16949 automobile production and related accessories management system certification .
company's products comply with certification standards such as CCC, Taiwan BSMI, North America FCC, EU CE, LVD or CB, EU RoHS directive , Australian EMC, Japan VCCI and other certification standards, meeting the product quality requirements of customers in domestic and foreign markets.
client: Mature marketing channels and quick-response marketing capabilities build a bridge connecting major customers at home and abroad.
company has established a complete sales system and established long-term and stable cooperative relationships with well-known domestic and foreign manufacturers with leading industry positions and market shares, such as the world-renowned intelligent interactive display equipment brand Elo, and the well-known American POS machine and ATM machine manufacturers. Giants NCR and Diebold, well-known Japanese high-end display manufacturer Mouse, well-known European self-service terminal equipment manufacturer Acrelec, etc., high-quality customer resources fully reflect the strong terminal market competitiveness of the company's products.
2. The global interactive display market will exceed 450 billion in 2025, and the industry will grow steadily.
The company is in the intelligent interactive display equipment manufacturing industry, and the company is in the middle of the industry chain.
Its industrial chain mainly includes upstream CPUs, chips and other semiconductors, PCBs, LCD panels, touch screens, wires, plastic and metal structural parts, other electronic devices and mechanical parts and other raw material providers, midstream intelligent interactive displays, intelligent interactive integration Machine and other complete machine manufacturers, downstream brand owners, software and system integrator manufacturers and other terminal complete machine manufacturers and other terminal equipment providers.
According to our estimates, the market size of intelligent interaction (covering retail, industry, fitness, medical, and automotive fields) will reach 469.1 billion yuan in 2025, with a CAGR of 10% from 2020 to 2025, and the industry will grow steadily.
Among them, the five-year CAGR in the retail and fitness fields has reached 22%, and the growth rate is outstanding. The automotive smart cockpit market will reach 370 billion yuan in 2025, making it the largest downstream application field.
. Retail display: The global market size will exceed 47 billion yuan in 2025, with a five-year CAGR of 22%
. The COVID-19 epidemic continues to impact, the commercial Internet of Things accelerates the development, and the scale of smart retail continues to expand. Driven by mobile payment technology and impacted by the COVID-19 epidemic, the traditional retail industry has gradually shifted from human-to-human interaction to human-computer interaction. Transaction terminals that integrate online and offline omni-channels have gradually become a necessity.
China’s smart commercial terminal market size: According to iResearch statistical calculations, the Chinese market size of smart commercial terminals including smart financial POS, Android cash registers and handheld non-financial devices in 2020 will be 8.9 billion yuan. During the epidemic Affected by this, the growth rate fell briefly, but it is expected that the market will continue its previous rapid growth after 2021, reaching 18.647 billion yuan by 2025. Currently, there are about 40 million retail, catering, and local life stores in China. Except for a few hundred-strong enterprises that have the ability to connect various scenarios and device interconnection and collaboration, a large number of merchants are only equipped with basic terminal equipment, and scenario applications are fragmented. In the future, as the penetration rate of and of the commercial Internet of Things further increases to 50%, the market size is expected to grow from the current 100 billion yuan to 500 billion yuan. Global market size of
smart commercial terminals: The overseas market of started later than the domestic market, but its demand has been stimulated by the epidemic and is expected to usher in a new round of outbreak in 2021. We predict that the global smart commercial terminal market will grow at a high rate in the future In China, according to iResearch, the global retail display market size is expected to reach 33.1 billion yuan in 2023, with a CAGR of 23% from 2020 to 2023. We assume that the industry maintains a growth rate of 20% in 2024 and 2025, and the global retail display market is expected to reach 47.7 billion yuan in 2025.
There are many manufacturers in the commercial intelligent interactive display equipment manufacturing industry, but the competition landscape is relatively fragmented, the industry concentration is low, and the number of large-scale enterprises is relatively small. The business model of industry manufacturers is mainly OEM, but some leading manufacturers have gradually transformed into JDM/ODM models.
Generally speaking, with the maturity of industry development and the extension and integration of the industrial chain, the concentration of this industry will gradually increase.
From the perspective of the global competition landscape, the major manufacturers in the industry can be roughly divided into three echelons:
1) The first echelon is composed of Elo, NCR, Diebold, and Mouse As represented by European, American and Japanese multinational companies, these companies started early, and after years of development have become industry giants with globally renowned brands and high-quality terminal resources. Their business focus is mainly product R&D, design and brand operations;
2) second-tier system Manufacturers represented by Avalue Technology, Wufeng Technology, Huahan Technology, and Qisda, such enterprises Gaining first-mover advantages in the process of global industrial chain transfer, it has now developed into a leading enterprise with a large business scale, high manufacturing level, and able to provide high-quality, customized product solutions and services;
3) The third echelon is mainly Small manufacturers started late and are large in number. They are the echelon that most domestic enterprises currently belong to.
. Industrial display: The global market size will reach 17 billion yuan in 2025, with a five-year CAGR of 9%.
Industrial automation: China’s industrial automation penetration rate is low, and the huge industrial control market of hundreds of billions needs to be tapped.
Industrial automation is an important foundation for industrial optimization and upgrading. my country is a major manufacturing country, but the automation penetration rate is still at a low level in the world. Taking industrial robots as an example, the density of industrial robots in my country in 2020 is only 246 units/ten thousand people, which is far lower than In countries such as South Korea (932 units/ten thousand people), Singapore (605 units/ten thousand people), my country's automation penetration rate still has sufficient room for improvement. The
policy highly supports the improvement of industrial automation levels. According to the "2021 China Automation Market White Paper" released by industrial control network , the size of my country's industrial automation control market will reach 236 billion yuan in 2022, with a CAGR of 7% from 2020 to 2022.
touch screen is the mainstream product of human-computer interface, and its large screen and diversified colors have become a trend.
Human-machine interface products (HMI) are an important part of industrial control systems. A well-designed HMI can closely monitor the production process, allow operators to control or maintain machines, and improve production efficiency.
Human-computer interface is mainly divided into three categories: text display, touch screen, and tablet computer. Text displays have fewer applications due to their weak graphical display functions; touch screens can realize functions such as graphic display, data storage, and networked communication, and are the first choice for industrial applications; tablet computers are mostly used in high-end complex equipment.
According to statistics from China Industrial Control Network , the market shares of the three in 2015 were 1.3%, 81.6%, and 17% respectively. At present, human-machine interface products are trending toward mid-to-high-end, large-screen, and diversified colors, which will drive further upgrades in product value.
Human-computer interaction is the general trend, and the demand is growing steadily.
The acceleration of global industrial automation has given rise to rapid growth in demand for HMI products. According to QYResearch, the global industrial display market size is expected to reach US$2.3 billion in 2024, with a CAGR of 9% from 2020 to 2024. We assume that the industrial display market size will increase at the same time in 2025. 9%, corresponding to a market size of US$2.5 billion (equivalent to RMB 16.9 billion).
. Fitness display: The global market size will exceed 17 billion yuan in 2025, with a five-year CAGR of 22%
Intelligent fitness: Due to the dual promotion of the epidemic and policies, along with the popularity and penetration of domestic fitness, intelligent fitness is on the 100 billion platinum track. According to the forecast of Qianzhan Industry Research Institute, the global fitness equipment market will maintain an average annual growth rate of about 4% from 2021 to 2025, reaching US$14.8 billion in 2025. Compared with the fitness penetration rate in European and American countries, China's fitness penetration rate is low and the potential that can be tapped is greater.
According to the "2019-2020 China Gym Market Development White Paper" data, the fitness population penetration rate in the United States is 20.3%, while that in China is only 5.02%, leaving a significant gap.Therefore, the growth space of China's fitness market will be higher than that of European and American countries. According to iiMedia Consulting forecast, China’s fitness equipment market size will reach 79.96 billion yuan in 2024, with a CAGR of 13.5% from 2021 to 2024.
In terms of smart sports and fitness hardware, in order to support the digital transformation of the sports industry , domestic favorable policies have been introduced one after another, and with the advent of new categories of smart fitness hardware such as smart fitness mirrors, the home fitness needs of Chinese families will be deeply explored.
With the rich content and intelligent interaction characteristics of smart fitness hardware courses, it is expected that the penetration rate of smart fitness hardware in Chinese families will grow rapidly.
According to iResearch statistics and forecasts, the scale of China's smart sports and fitness market has reached approximately RMB 10 billion in 2019, and is expected to exceed approximately RMB 82 billion in 2025. The compound growth rate from 2021 to 2025 is expected to reach approximately 46%.
As consumers’ willingness to consume smart products continues to increase, the penetration rate of smart fitness products continues to increase, and visual smart fitness mirrors and treadmills equipped with large screens have become mainstream products. In addition to fitness mirror startups FITURE, Mirror, and TEMPO making efforts in the field of smart fitness, Xiaomi , Huawei , iFlytek , etc. will also enter this popular track, making the smart fitness market a battleground for military strategists. , so its upstream screen display market demand is bound to see a surge.
Assuming that the unit price of smart fitness mirror screens is 2,000 yuan, the global smart fitness mirror market size will reach 11.2 billion yuan in 2025; according to QY Research, the treadmill market size will reach 21 billion yuan in 2025, assuming that the value of treadmill monitors accounts for 30 %, its global market size will reach 6.3 billion yuan in 2025. The global smart fitness monitor market is expected to reach 17.5 billion yuan in 2025, with a CAGR of 22% from 2020 to 2025.
. Medical display: The global market size will exceed 13 billion yuan in 2025, and the five-year CAGR will reach 7%.
Smart medical care: The aging process is accelerating, overlapping favorable policies are continuously introduced, global medical demand continues to grow in the post-epidemic era, and the scale of smart medical care is increasing. Significant speed.
As the aging process accelerates, the global demand for medical equipment continues to increase.
According to Evaluate data, affected by the epidemic, the global medical equipment market will reach US$496 billion in 2020, and the CAGR from 2021 to 2025 is expected to be 5%.
Compared with developed countries such as Europe and the United States, China started late in the field of medical devices and has a low share. However, as the world's most promising emerging market, China's products are popularized and upgraded very quickly.
According to Evaluate data, China is the fastest growing region. Against the background of the epidemic, China's medical equipment industry will grow at a rate of 27% in 2020. The market size is expected to reach US$209 billion in 2025. The industry market size in 2021-2025 CAGR is 12%.
Medical display equipment provides medical imaging data and information for doctors and patients, and the demand is growing steadily.
According to Qunzhi Consulting data, in the context of the easing of the epidemic, the demand for medical display equipment is expected to decline significantly in 2021. However, due to the continuous expansion of the scale of the medical equipment market and the improvement of the intelligence, visualization, and convenience of medical equipment, it is expected that It will return to normal levels and steadily improve in the post-epidemic era. Qunzhi Consulting estimates that the global medical device industry's demand for displays will have a CAGR of 8% from 2021 to 2025.
Assuming that the unit price of medical display equipment is 3,000 yuan, we predict that the market size of medical display equipment will reach 13.8 billion yuan in 2025, with a CAGR of 7% from 2020 to 2025.
. Vehicle-mounted display: The global market size will exceed 370 billion yuan in 2025, with a five-year CAGR of 8%.
The global smart cockpit market will reach 37 billion U.S. dollars, with a CAGR of 8% in the next five years. Human-machine perception and interaction have become the focus of the development of automobile intelligence, so smart cockpits have become a new direction and new growth point for the development of the automobile industry.
According to IHS statistics and forecasts, the global automotive smart cockpit market will reach US$37 billion in 2020, with an industry penetration rate of 45%. It is expected to reach US$56 billion in 2025, with a CAGR of 8%, and an industry penetration rate of 59%.
smart cockpit is equipped with central control screen, instrument panel, HUD and other products, and is becoming the main driving force for the growth of the automotive market.In China's smart cockpit market in 2020, the central control screen market accounted for 59%, the instrument panel accounted for 29%, and the HUD accounted for only 5%.
Large screen + multi-screen, the automotive display market has grown steadily.
With the upgrading of automobile intelligence, the number of in-vehicle screens continues to increase. The number of screens installed on a bicycle increases from 1-2 to 3-4. According to IHS data, it is expected that by 2030, the number of cars equipped with 3 or more screens will reach Around 20%, coupled with the influence of the large-screen and multi-screen trends brought about by new energy vehicles, vehicle-mounted displays will continue to increase in volume.
expects vehicle display screen shipments to be 200 million units in 2022, a year-on-year increase of 11%, and to reach 230 million units in 2025, with a CAGR of 5% from 2023 to 2025; the vehicle display screen market size will reach US$10.6 billion in 2022, a year-on-year increase 14%, reaching US$12.8 billion in 2025, with a CAGR of 6% from 2023 to 2025.
Currently, the main players in the smart cockpit industry are traditional Tier 1.
Domestic companies mainly include Desay SV (11%), Neusoft Reach (10%), Yanfeng Visteon (8%), Faurecia (7%), Harman (6%), PATEO (6%), Aptiv (5%), etc. Overseas companies are mainly Bosch , mainland China, etc. At present, Tier 2 panel and module factories in the upstream of the supply chain have also begun to deploy in the field of smart cockpits to seize market share with traditional Tier 1. (Report source: Yuanzhan Think Tank)
3. Strong long-term and short-term driving forces help the company’s performance increase
. Short-term driving forces: falling panel prices and appreciation of the US dollar
Since the second half of 2021, upstream large-size panel prices have entered a downward channel, with a drop of more than 50%. Panel costs account for more than 30% of the total raw material costs. Its price decline will be conducive to the company's future gross profit improvement and net profit increase. The company's gross profit margin has reached 25.9% in the first quarter of 2022. Assuming panel prices remain low, the company's gross profit margin is expected to exceed 26% in 2022.
The US dollar has appreciated. The company's products are mainly exported. In 2021, the company's export sales accounted for more than 95%. Related businesses are mainly settled in US dollars. The appreciation of the US dollar in the short term will help increase revenue, gross profit margin, and exchange gains and losses, thus driving the company's future revenue growth. , net profit increased. As of the first quarter of 2022, the company's orders on hand that have yet to be delivered are US$188 million, which corresponds to orders on hand of 1.26 billion yuan based on the U.S. dollar to RMB exchange rate on June 30.
. Long-term driving force: The expansion of downstream application categories and the operation of independent brands have achieved remarkable results.
The company's current business mainly focuses on the retail display industry, while rapidly expanding into industrial, smart fitness, medical, automotive and other fields.
company acquired the Micro Touch brand to operate its own brand, helping the company expand customer coverage and improve profitability.
1) In the first half of 2021, the company acquired the touch system products and touch display brand MicroTouch™ of the American M company , and contributed more than 5 million US dollars to the company's revenue in the first half of 2021, covering the acquisition cost. The MicroTouch™ brand operation has achieved remarkable results, bringing new customers and business increases to the company in multiple application fields such as industrial control, medical care, and finance.
2) Independent brands have the characteristics of continuity, controllability, leverage effect, direct access to end customers, and high gross profit. Micro Touch brand operation is not only conducive to accelerating the company's business expansion, but also strengthening the company's existing touch component and display product portfolio, bringing New business increment. Since the gross profit margin of its products is above 30%, which is higher than the company's average products, it will further enhance the company's profitability. In 2021, the company's orders for promotion and operation in the United States alone will reach US$26 million. In 2022, the company will establish a new subsidiary in Europe to increase Micro Touch global sales and service support and continue to enhance the company's industry influence.
increased its in-vehicle touch display business and acquired Hongtong Technology, the supplier of Tesla central control display.
1) In November 2021, the company announced that it would acquire 10% of the equity of Hongtong Technology for 25.87 million yuan. The company has the option to increase its equity stake in Hongtong Technology within two years, and has the right to decide whether to acquire 10% of the equity based on the development of Hongtong Technology. Increase the equity stake to no more than 49% at the same valuation. The equity of Hongtong Technology has been completed in April 2022.
2) Hongtong Technology established a new subsidiary for TPK and took over all the automotive business of TPK’s automotive touch module division. TPK laid out vehicle touch panels earlier and became Tesla’s central control display supplier as early as 2017. The 17-inch ultra-large screen of Model S and the 15-inch screen of Model 3 are both provided by TPK.
3) After the acquisition is completed, Chenzhan Optoelectronics and Hongtong Technology will complement each other's advantages, accelerate the development of domestic new energy vehicle manufacturers' customers, and enhance the company's automotive strength.
. Profit forecast: Net profit from 2022 to 2024 will be 240, 300, 350 million yuan, a year-on-year increase of 59%, 20%, 20%.
predicts that the company will achieve revenue of 1.99 billion yuan, 2.46 billion yuan, and 3.07 billion yuan respectively in 2022-2024. , a year-on-year increase of 25%, 24%, and 25%.
intelligent interactive display:
1) Intelligent interactive display is widely used in retail, industrial control, finance, medical and other fields. The company cooperates with Elo, NCR, Jabil With stable cooperation with other well-known customers in the field of retail finance, coupled with the development of emerging fields such as smart fitness and smart cockpits, the revenue of the smart interactive display business will grow steadily. It is expected that the company's smart interactive display product revenue will increase by 10% from 2022 to 2024, respectively. Reaching 758, 834, and 917 million yuan.
considers the decline in panel prices to increase the gross profit margin of the company's intelligent interactive display business to 27% in 2022. It is expected that the gross profit margin will remain at 27% in 2023 and 2024.
intelligent interactive all-in-one machine:
1) Intelligent interactive all-in-one machine products have the characteristics of integrated functions, customization, intelligence and high added value. It is the company's key expansion direction. With the expansion of intelligent interactive all-in-one machine application scenarios and the development of new customers , we estimate that the company's intelligent interactive all-in-one machine revenue will reach 8.54, 1.153, and 1.556 billion yuan from 2022 to 2024, a year-on-year increase of 40%, 35%, and 35%.
2) Taking into account the decline in panel prices and increasing the gross profit margin of the company's intelligent interactive all-in-one machine business to 21% in 2022, the gross profit margin is expected to remain at 21% in 2023 and 2024.
predicts that the company will achieve net profits attributable to shareholders of 2.4, 29, and 350 million yuan from 2022 to 2024, respectively, representing year-on-year increases of 59%, 20%, and 20%. It is expected that thanks to the decline in raw material prices, the high-margin Micro Touch, and the help of Hongtong Technology in the automotive display market, the company's gross profit margin is expected to further increase, and profitability will be enhanced accordingly; the company's R&D rate is expected to increase slightly and remain at 3.5%, the management fee rate remains at 5.2%, and the sales rate remains at 3.3%.
. Valuation: Give the company a target price of 35.86 yuan/share
We selected comparable companies in the company's display industry: BOE Precision, Huaan Xinchuang, Honghe Technology , CVTE . The company's current valuation is significantly lower than that of comparable companies. We give the company a PE valuation of 22 times in 2022, with a target The market value is 5.3 billion yuan, and the corresponding target price is 35.86 yuan/share.
4. Risk warning
The risk of recurrence of the new crown epidemic: Affected by the new crown epidemic, the global economic development prospects are unclear, which may have a negative impact on the company's business on the demand side.
Raw material price fluctuation risk: The main raw materials of company's products, such as LCD panels, touch screens, integrated circuits, computer motherboards, Touch control boards, etc., account for a large proportion of finished products. If the main raw materials are affected by supply and demand and other factors, the price will be high. adversely affect the company's profitability. Risks of
export policy changes: 's export business is affected by the importing country's trade policy, market demand, Sino-US trade war, etc. The intensification of the trade war or the deterioration of the international environment may cause adverse risks to the company's operations. The risk of changes in export tax rebate policies. If the country changes tax rebate policies and lowers the tax rebate rate in the future, it will have a negative impact on the company's profitability.
RMB exchange rate fluctuation risk: company's products are mainly sold for export and are mainly settled in US dollars. Unfavorable fluctuations in the exchange rate of and may cause the company to suffer exchange losses.
Major shareholders and directors' shareholding reduction risks: On June 25, the company announced that shareholders and directors planned to reduce their holdings of 5% of the company's equity, which may cause the company's stock price to fluctuate. On June 29, shareholder Songbao Investment announced that the shareholding reduction plan had not been fully disclosed. Within 15 trading days, the company mistakenly operated centralized bidding to reduce its holdings of 10,000 shares of the company, with a transaction amount of 257,000 yuan.
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