BOE(SZ:000725) Huajin Securities·2024-07-23 14:00Investment Rating - The investment rating for the company is "Accumulate-A" [2] Core Views - The semiconductor display industry is experiencing an upturn, leading to a significant increase in the company's net profit for the first half of 2024, with an expected year-on-year growth of 185% to 213% [1][4] - The company is focusing on high-end mid-size products by investing in the 8.6 generation AMOLED production line, which is expected to start mass production by the end of 2026 [2][4] - The company is also entering the flexible dimming new sector with the establishment of Ruisi Technology, which will produce flexible dimming films and electronic devices [2][4] Summary by Relevant Sections Financial Performance - The company anticipates a net profit of 1.116 billion to 1.316 billion yuan for Q2 2024, representing a year-on-year increase of 128.50% to 169.44% and a quarter-on-quarter increase of 13.46% to 33.78% [1] - For the first half of 2024, the expected net profit is between 2 billion to 2.3 billion yuan, indicating a year-on-year growth of 185% to 213% [1] Market Trends - The demand for large-size LCD panels is expected to increase due to major sporting events and e-commerce promotions, with a notable price increase in TV products observed in March and April 2024 [1] - The penetration rate of AMOLED products is on the rise, with the company maintaining growth in flexible AMOLED shipments [2] Investment Projects - The company announced the investment in the 8.6 generation AMOLED production line to cater to high-end mid-size product demands, particularly in the IT and automotive sectors [2][4] - The flexible dimming technology developed by Ruisi Technology aims to address challenges in automotive applications, enhancing the company's competitive edge in the flexible product market [2][4] Revenue and Profit Forecast - Revenue projections for 2024 to 2026 have been adjusted to 203.378 billion, 227.336 billion, and 247.410 billion yuan, with growth rates of 16.5%, 11.8%, and 8.8% respectively [4] - The net profit forecast for the same period has been revised to 51.31 billion, 90.86 billion, and 110.97 billion yuan, with growth rates of 101.4%, 77.1%, and 22.1% respectively [4]