Depth * Company * BOE A (000725): Flexible OLED driven by panel display leader to drive growth
The company is a global leader in panel display. It has leading technological advantages in the LCD and flexible AMOLED fields, covering it for the first time and giving it a “Buy” rating.
Key points of the official rating The yield of the Chengdu line continues to climb, and the Mianyang line is expected to start production at the end of the year, waiting for AMOLED volume.
In terms of OLED, the company has announced the construction of 4 6th generation flexible AMOLED production lines. Among them, the 6th generation head-type AMOLED production line in Chengdu achieved mass production delivery in October 2017.
According to the company’s disclosure, the yield rate of Chengdu flexible AMOLED line reached 70% at the end of 2018. At present, the yield rate and production capacity have climbed, and it has supplied to first-tier brand customers.
The 6th generation flexible AMOLED production line in Mianyang is making good progress and is expected to be put into production this year.
The 6th generation flexible AMOLED production line projects in Chongqing and Fuzhou have a total investment scale of 46.5 billion yuan, and the design capacity can be 48K / month.
The successive production of four flexible AMOLED production lines will expand the company’s market competitive advantage in the flexible AMOLED field.
The 5th generation line will gradually withdraw from the peak of depreciation, Hefei 10.
The 5th generation line is progressing smoothly.
At present, the company’s revenue main force is Hefei, Beijing and Chongqing.
6th generation line, Beijing 8.
The 5th generation line was put into production in 2011, 8 in Hefei and Chongqing.
The 5th generation lines were put into production in 2013 and 2015, respectively.
The 5th generation line will gradually withdraw from the depreciation peak, and the profitability of the company’s LCD panel will be further improved by then.
The 5th generation line is mainly for large-size products of 65 inches and above. It is currently climbing and progressing smoothly.
The Internet of Things transformation strategy has continued to advance, and significant progress has been made.
The company adheres to the development and transformation strategy of the Internet of Things, and the three major sectors have made significant progress.
Volume device segment, the overall volume of display panels remains the world’s first volume; smart IoT segment, the expansion of intelligent manufacturing services has steadily increased, the TV / display unit shifted about 18 million units, ranking third and fourth in the world;Construction sector: A variety of products have been released successively; Hefei BOE Hospital officially opened in December, Chengdu BOE Hospital officially started in December, and the life science and technology industry base completed the cooperation agreement signing in November.
At the same time, the company will be further 杭州夜生活网 integrated into three business segments into seven business groups.
Estimated expected company 2019?
The EPS in 2021 is 0.
22 yuan, the current expected corresponding PE is 28X, 23X, 17X.
Considering the company’s leading position in the global panel display field, it is covered for the first time and given a “Buy” rating.
LCD panel prices continued to fall; OLED production line progress exceeded expectations.