BOE(SZ:000725) Zheng Quan Zhi Xing·2025-06-10 13:43Core Viewpoint - China Lianhe Credit Rating Co., Ltd. has assigned a long-term credit rating of AAA with a stable outlook to BOE Technology Group Co., Ltd., reflecting the company's strong competitive advantages in the semiconductor display industry and its solid financial position [1][3]. Company Overview - BOE Technology Group Co., Ltd. was established in April 1993 and has evolved from the Beijing Electronic Tube Factory. The company is primarily engaged in the production of display devices, IoT innovations, sensors, MLED, and smart medical engineering [3][10]. - As of the end of 2023, the company had total assets of 4,191.87 billion yuan and equity of 1,977.99 billion yuan, with a revenue of 1,745.43 billion yuan and a profit of 18.33 billion yuan [3][10]. Industry Analysis - The semiconductor display industry is characterized by high concentration, with the top five companies holding approximately 80% of the global market share. The industry is closely tied to the performance of downstream consumer electronics, which has shown cyclical fluctuations [8][9]. - Despite challenges, the industry is expected to benefit from ongoing economic structural transformations and technological innovations, particularly in OLED, Mini LED, and Micro LED technologies [8][9]. Financial Performance - The company's revenue decreased from 2,210.36 billion yuan in 2021 to 1,745.43 billion yuan in 2023, with a profit total of 18.33 billion yuan in 2023, indicating a recovery from previous losses [6][20]. - The company maintained a strong cash flow position, with net cash inflows from operating activities of 626.99 billion yuan, 430.22 billion yuan, and 383.02 billion yuan from 2021 to 2023 [5][20]. Competitive Advantages - BOE has a significant scale advantage and a solid industry position, leading in global shipments of LCDs and various applications, including smartphones and TVs. The company also ranks first in the global market for IoT innovation products [4][10]. - The company invests heavily in R&D, with expenditures of 124.43 billion yuan, 126.02 billion yuan, and 125.63 billion yuan from 2021 to 2023, representing 5.63%, 7.06%, and 7.20% of total revenue, respectively [4][11]. Future Outlook - The company is expected to enhance its business and product structure with the further release of AMOLED capacity and the development of sensor, MLED, and smart medical engineering businesses [4][6]. - The semiconductor display industry is anticipated to continue evolving with the integration of IoT technologies and the growth of new application markets, supported by government initiatives for technological innovation [9][10].