Investment Rating - The investment rating for the company is "Buy" for the first time [4]. Core Viewpoints - The company, Kangguan Technology, is a leading display OEM in China with a high export ratio, focusing on ODM products for countries along the Belt and Road Initiative, and is less affected by international trade policy fluctuations [2][5]. - The company has maintained rapid revenue growth driven by demand from emerging markets, particularly in the education and office sectors, supported by digital education policies in Europe and the US [2][5]. - Kangguan Technology has a diverse product matrix in innovative displays, including nearly 20 product lines such as mobile smart screens, smart beauty mirrors, VR glasses, and OLED floating TVs, which are expected to be core growth drivers in the future [2][5]. Summary by Sections Company Overview - Kangguan Technology is one of the earliest manufacturers of flat panel display terminal products in China, transitioning from CRT displays to becoming a leader in LCD TV exports by 2020 [5][15]. - The company has five main business segments: smart TV design and manufacturing, interactive display products, innovative display products, component manufacturing, and design processing services [15]. Financial Performance - From 2018 to 2023, the company's revenue grew from 6.85 billion to 13.45 billion, with a compound annual growth rate (CAGR) of 14.44% [21]. - The net profit attributable to shareholders increased from 400 million to 1.283 billion during the same period, with a CAGR of 26.44% [21]. - The latest stock incentive plan sets revenue growth targets of 12.3%, 29.4%, and 39.8% for 2024 to 2026 compared to 2023 [29][30]. Market Demand and Trends - Global TV shipments reached a peak of 250 million units in 2020, with a projected recovery to 215 million units in 2024, reflecting a 0.6% year-on-year growth [7][33]. - The company’s TV exports primarily target the Asia, Africa, and Latin America regions, covering many Belt and Road countries, with significant growth potential in Central Asia and Eastern Europe [7][34]. - The interactive display market is expected to grow steadily, with shipments projected to reach 3.578 million units by 2028, driven by digital education policies in developed countries [7][8]. Competitive Advantages - The company has a competitive edge in innovative display products, with a rich product matrix and strong growth potential, supported by significant investments in marketing and R&D [8][21]. - Kangguan Technology's export revenue ratio increased from 68.6% in 2019 to 84.0% in 2023, indicating a growing international presence [25][26]. - The company has established strong links with local leading enterprises through flexible manufacturing and differentiated market strategies [25].
康冠科技：“屏地风雷”系列深度报告之十九：一带一路出海，创新显示爆发