TCL Group (000100)： Flexible OLED mobile phone panel is about to go into mass production as headwinds continue to grow
TCL Group (000100): Flexible OLED mobile phone panel is about to go into mass production as headwinds continue to grow
The performance review excludes the impact of the Q1 2019 restructuring business. TCL Group’s pro forma revenue for the first three quarters of this year was approximately 41.2 billion, an increase of 19%.
2%, net profit attributable to mother is about 25.
8 billion, up 19 previously.
2%, third quarter revenue of about 15 billion, net profit attributed to the mother4.
8.5 billion, the overall performance in line with expectations.
Operational analysis Panel prices continued to decline slightly in the third quarter, and TCL Group increased against the wind: the average unit price of TV panels in the first three quarters of 2019 fell by more than 20%, and TCL Group’s gross profit margin also increased from 18 in 2018.
4% fell to 13%.
For the major panel manufacturers, the company’s gross profit margin is still in the leading position in the industry, and the operating profit margin is also the only one that maintains profitability among large-size panel manufacturers. The net profit margin is significantly higher than that of Korean factory leader LGD and Taiwan factory AU Optronics.The domestic panel maker leader BOE is more profitable.
The company’s EBITDA / revenue is almost 2 for LGD.
5 times that of AUO.
1 time, the profitability is much higher than the Korean and Taiwan factories.
The volume of LTPS-LCD mobile phone panels has grown, and the long-term growth trend remains unchanged: In the first three quarters of this year, China Star Optoelectronics’ product structure has shifted from only large-size TV panels to TVs and mobile phone panels, with large-size panel revenues of 135.
500 million, accounting for about 55%, small-sized panel revenue rose to 11 billion, the proportion also increased to 45%.
In the first three quarters of this year, the number of small-size panels was about 88 million, and the expansion area exceeded 1 million square meters, an increase of 252%.
The t3 capacity of the small-size 6-generation LTPSLCD production line in Wuhan has been increased to 50K / month, and the company has increased its incremental capacity through technological improvements.
Wuhan’s 6th-generation flexible OLED production line is expected to be put 成都桑拿网 into production in the fourth quarter of this year. Large-size Mini-LEDs are expected to become the first year of explosion next year: the company also has heavy-weight reserves in new products and new technologies, which are TFT-backlit Mini-LED size products.And flexible phone OLED panel.
TCL Huaxing has released TFT-MLED-based MLED satellite products, and further demand in the high-end market. It is expected that the penetration rate of Mini-LED products in the TV field in the next three years is expected to reach 5%, and the market space is more than 10 million units.
In addition, the Wuhan T4 production line, which will be put into production in Q4 this year, will become the company’s first mass-production 6th generation flexible OLED production line. Flexible AMOLED panel companies in the small and medium size field will focus on under-screen cameras and foldable flexible display technologies.Recognition of top brand strategic customer recognition.
Earnings adjustment and investment recommendations We have reduced the company’s net profit margin to its parent from 2019 to 2020 by approximately 4.
1% and 7.
8%, EPS in the next three years will be 0.
26 yuan, 0.
29 yuan and 0.
43 yuan, corresponding P / E estimates are 13x, 11x and 8x respectively, maintaining the company’s “Buy” rating.
Risks suggest that the demand for downstream TVs continues to be sluggish, and the company ‘s new product Mini-LED large size and flexible OLED introduction into the client may exceed expectations.