BOE(000725) 东吴证券·2024-08-28 12:00Investment Rating - Buy (Maintained) [1] Core Views - The company's product technology continues to advance, leading to a significant improvement in profitability [1] - Revenue growth is steady, with both gross and net profit margins improving quarter by quarter [2] - The company is focused on its core strategy of "Screen IoT," with five major business segments undergoing product updates and iterations [3] - The company is expanding its overseas market presence, with multiple display products passing certification from overseas customers [3] - The company is expected to benefit from the cyclical recovery of the panel industry and its rapid deployment in the MLED sector [3] Financial Performance - 24H1 revenue reached 93.39 billion yuan, a year-on-year increase of 16.5% [2] - 24H1 net profit attributable to the parent company was 2.28 billion yuan, a year-on-year increase of 210.4% [2] - 24H1 gross profit margin was 16%, up 7 percentage points year-on-year [2] - 24H1 net profit margin was 1.9%, up 4 percentage points year-on-year [2] - 24Q2 revenue was 47.5 billion yuan, a year-on-year increase of 12.5% and a quarter-on-quarter increase of 3.5% [2] - 24Q2 net profit attributable to the parent company was 1.3 billion yuan, a year-on-year increase of 166.2% [2] - 24Q2 gross profit margin was 17.5%, up 3 percentage points quarter-on-quarter [2] - 24Q2 net profit margin was 2.7%, up 1.6 percentage points quarter-on-quarter [2] Business Segments - Display device business achieved revenue of 78.01 billion yuan, a year-on-year increase of 14.9%, with a gross profit margin of 14.0%, up 7 percentage points year-on-year [3] - IoT innovation business achieved revenue of 17.16 billion yuan, a year-on-year increase of 19.4%, with a gross profit margin of 11.0%, up 2.3 percentage points year-on-year [3] - MLED business achieved revenue of 4.03 billion yuan, a year-on-year increase of 116.0%, the fastest growth among all segments [3] - Smart healthcare business achieved revenue of 900 million yuan, a year-on-year increase of 13.6% [3] - Sensor business achieved revenue of 20 million yuan, a year-on-year decrease of 10.8% [3] Overseas Expansion - The company's first self-built smart factory in Vietnam, Phase II, has started construction, aiming to produce 3 million TVs, 7 million monitors, and 4 million e-papers annually, with mass production expected to begin in 2025 [3] - Automotive displays have been introduced to leading overseas automakers, with shipment volume ranking first in the industry [3] Financial Forecasts - Forecasted net profit attributable to the parent company for 2024-2026 is 4.55 billion yuan, 9.04 billion yuan, and 15.5 billion yuan, respectively [3] - Current market value corresponds to a PE ratio of 31x, 16x, and 9x for 2024-2026, respectively [3] Market Data - Closing price: 3.79 yuan [5] - One-year low/high price: 3.53 yuan / 4.56 yuan [5] - Price-to-book ratio: 1.11x [5] - Market capitalization of tradable A shares: 139.67 billion yuan [5] - Total market capitalization: 142.69 billion yuan [5] Key Financial Metrics - Earnings per share (EPS) for 2024E: 0.12 yuan [2] - Price-to-earnings (P/E) ratio for 2024E: 31.33x [2] - Gross profit margin for 24H1: 16% [2] - Net profit margin for 24H1: 1.9% [2]