京东方精电：CMBI Corp Day takeaways: large-size/high-end display demand, Chengdu plant and overseas orders

Investment Rating - The report maintains a BUY rating for BOE Varitronix with a target price of HK$10.94, indicating a potential upside of 129.3$4.77 [4][9]. Core Insights - Management expects larger and high-end displays to drive sales growth, with a guidance of over 8% year-on-year sales growth, outperforming the industry average of 4% [2][9]. - High-end products are projected to achieve over 200% year-on-year growth, contributing significantly to overall sales in FY24E [2]. - The Chengdu plant is operating at full capacity, producing over 15 million pieces per month, with expectations for a recovery in utilization rates in the second half of FY24E [2][9]. - The net profit margin (NPM) is anticipated to recover in the second half of FY24E due to improved operational efficiency and ASP increases [2][9]. Financial Summary - Revenue is projected to grow from HK$10,760 million in FY23A to HK$11,699 million in FY24E, reflecting an 8.7% year-on-year increase [3][11]. - Net profit is expected to recover from HK$475.3 million in FY23A to HK$573.5 million in FY24E, representing a 20.7% year-on-year growth [3][11]. - The company is trading at a P/E ratio of 6.5x for FY24E, which is below the historical average, suggesting an attractive valuation [9][13]. Operational Highlights - The management highlighted that overseas demand for high-end products is rapidly increasing, contributing to the positive outlook for large displays and high-end products [2]. - The system business is expected to grow over 100% year-on-year in FY24E, with sales contributions projected to exceed 5% in FY24 and 5-10% in FY25E [2]. - The report indicates that the automotive display segment is also showing resilience, with expected growth in both domestic and overseas markets [8].