Market Overview - The global sales of new energy vehicles are expected to exceed 18 million units in 2024, representing a 45% year-on-year growth, with China's penetration rate soaring to 38.6% [1] - The demand for in-car displays is experiencing explosive growth, with global shipments of automotive panels projected to reach 228 million units in 2024, a historical high [1] - The automotive display panel market is expected to surpass $15.8 billion, with a target of $20 billion by 2025 [1] Industry Dynamics - The average number of screens in high-end vehicles has increased to 4.2 in 2024, up from 2.8 in 2022 [1] - The proportion of central control screens larger than 12 inches has reached 72%, an increase of 7 percentage points from 2022 [1] - The penetration rate of Mini LED technology in automotive applications is expected to exceed 15% in 2024, significantly enhancing the value of individual vehicle displays by 300% [1] Company Spotlight: Weizhi Optoelectronics - Weizhi Optoelectronics is the leading player in the automotive backlight module market, with a 15% market share and a diverse client base including major panel manufacturers and automotive brands [2][6] - The company has a strong vertical integration strategy, producing 75% of key materials in-house, covering the entire supply chain from molds to SMT [4] - Weizhi is innovating with curved displays and local dimming backlight technologies, and plans to establish a vehicle-grade COB production line for Mini LED by 2024 [5] Financial Performance - In 2024, Weizhi's revenue is projected to be 2.372 billion RMB, with a net profit of 92 million RMB, reflecting a year-on-year growth of 25.6% and 96.3% respectively [6] - The company's gross margin is expected to be 21.8%, an increase of 4.2 percentage points [6] - The stock is currently undervalued, with a PE ratio of only 4 times, compared to 58 times for comparable companies in the A-share market [6] Strategic Investment - CICC's strategic investment in Weizhi, amounting to 30-50 million RMB, aims to expand Mini LED production lines and develop glass-based backlight technology [7] - The investment is expected to increase Weizhi's Mini LED module production capacity by 300% by 2025 [7] Competitive Landscape - BOE is projected to capture 18.7% of the market share in 2024, while Huaxing Optoelectronics is expected to hold 15.2% [8] - The competition in the backlight module sector is intensifying, with some companies facing significant losses, while Weizhi and Weishi are experiencing growth due to their technological advantages [8] Future Outlook - The demand for automotive backlight modules is anticipated to reach 245 million units in 2024, with the penetration rate of new energy vehicles targeting 35% [9] - The collaboration between CICC and Weizhi is seen as a significant step towards enhancing China's manufacturing capabilities and moving up the value chain [9] - Analysts predict a substantial increase in Weizhi's stock price, with target prices set at 3.2 HKD and 3.5 HKD based on future earnings projections [9]
伟志控股拟获央企战投！LED芯片龙头迎国家队注资，产能扩张在即