Origin: Liu Xiang electron studies

Author Liu Xiang

Incident

Beijing east was released recently annals was mixed 2017 reported first quarter 2018. The company realized business income 2017 93.8 billion yuan, grow 36% compared to the same period, implementation puts in parent net profit ‘s charge 7.57 billion yuan, grow 302% compared to the same period, corresponding every accrual 0.22 yuan; 2018Q1 realizes battalion to receive 21.6 billion yuan, drop compared to the same period 1.3% , implementation puts in parent net profit ‘s charge 2.02 billion yuan, drop compared to the same period 16.3% , corresponding every accrual 0.06 yuan, accord with basically anticipate.

Comment on

Face plateThe priceDrop continuously company of be a burden on first quarter outstanding achievement. Suffer what many tall for generations of domestic produces a line to leave in succession piece, and traditional and off-season influence, 1Q18 face plateThe priceDrop continuously. Company wool interest rate also from 2017 of Q1 29.63% drop 2018 20.77% of Q1, glide compared to the same period 8.86 percent; The company buckles blame net profit 966 million, drop compared to the same period 58% . We think, at present face plate price has been in historical status, the arrival of busy season of tradition of second half of the year will make look forward to of face plate price firm, at the appointed time company outstanding achievement also will be improved somewhat.

AMOLED business goes well, hopeful contributes outstanding achievement stage by stage. Produce can respect, first phase of 6 AMOLED of Dai Rou sex produce 2Q18 Chengdu can will produce completely, come true first half of the year in next year produce a line completely; Fine rateRespect, had arrived March 65% , we predict this year annualFine rateHopeful achieves 70% above. Future is in as AMOLED smartphoneThe marketThe rise of permeability, predict this business will make the company’s new outstanding achievement point of growth.

LCD is produced can release continuously, can be expected soon of bibcock of face plate of global liquid crystal. 8.5 acting lines produce the Fuzhou that the quantity produced last year can climb slope successful, 10.5 acting lines entered Hefei March this year the quantity is produced. Calculate according to us, predict to be produced to LCD of next year company can will exceed LGD to make global faucet. On company dimensions banner also hopeful is changed into the company to be in furtherCost, the advantage of the respect such as bargain.

Layout of DSH career strategy did not arrive, value a company to develop for a long time. The company is being done do by force show greatly and sensor career while, career of system of active position wisdom and health serve a cause. We think, although price of short-term face plate drops,can form pressure to company outstanding achievement, but future is produced as AMOLED can release, the company is in of position of LCD domain bibcock consolidate and of wisdom system and outstanding achievement of healthy service business continuously to the limit of one’s capacity, company long-term development does not have care.

Gain is forecasted withInvestmentProposal: We predict company 2018-2020 year business income is 1259.8, 1836.6, two hundred and eleven billion three hundred and ten million yuan, 3 years future net profit is reduced for 77.4, 117.8, 15.92 billion yuan, corresponding 2018-2020 year PE is respectively 18.7, 12.3, 9.1, maintain ” buy ” grade.

Risk clew: Price of liquid crystal face plate drops, AMOLED is produced can release anticipate not as good as, business of industry competition aggravate, healthy service grows under anticipate.