BOE(000725) 东吴证券·2024-11-01 22:07Investment Rating - Buy (Maintained) [1] Core Views - The company's performance showed steady growth in Q3 2024, with significant improvements in revenue and profitability [2] - Revenue for the first three quarters of 2024 reached 1437.3 billion yuan, a year-on-year increase of 13.6% [2] - Net profit attributable to the parent company was 3.31 billion yuan, a year-on-year increase of 223.8% [2] - Gross profit margin and net profit margin for the first three quarters were 16.5% and 1.4%, respectively, up by 5.3 percentage points and 0.3 percentage points year-on-year [2] Business Development - The company is advancing its "Screen IoT" strategy, focusing on multiple business segments including display devices, IoT innovation, MLED, smart healthcare, and sensing technologies [3] - The 8.6th generation AMOLED production line was capped ahead of schedule in September 2024, with plans for mass production by 2026 [3] - MLED business is progressing well, with the Zhuhai MLED project expected to complete equipment installation by December 2024 and achieve mass production by Q1 2025 [3] - The company has successfully launched its first P0.3 Micro LED automotive display product and completed the construction of the Jinwan factory's 6-inch Micro LED mass production line [3] - Smart healthcare operations are expanding, with four digital hospitals currently in operation and the Chengdu Smart Healthcare Center nearing completion [3] Overseas Expansion - The company is expanding its overseas market presence, with the second phase of its Vietnam smart terminal factory set to begin production in 2025, targeting annual outputs of 3 million TVs, 7 million monitors, and 4 million e-paper devices [4] - MLED light boxes have been successfully deployed in Brazil, enhancing the company's brand visibility overseas [4] - Automotive displays have been integrated into leading overseas car manufacturers, maintaining the company's position as the top supplier in this segment [4] Financial Projections - Revenue is projected to grow from 203.8 billion yuan in 2024 to 242.5 billion yuan in 2026, with year-on-year growth rates of 16.77%, 11.99%, and 6.24%, respectively [1] - Net profit attributable to the parent company is expected to increase from 4.55 billion yuan in 2024 to 15.5 billion yuan in 2026, with year-on-year growth rates of 78.76%, 98.61%, and 71.40%, respectively [1] - EPS is forecasted to rise from 0.12 yuan per share in 2024 to 0.41 yuan per share in 2026 [1] - The company's P/E ratio is expected to decrease from 38.61x in 2024 to 11.34x in 2026, reflecting strong earnings growth [1] Financial Performance - The company's gross profit margin is projected to improve from 13.17% in 2024 to 18.78% in 2026 [10] - Net profit margin attributable to the parent company is expected to increase from 2.23% in 2024 to 6.39% in 2026 [10] - ROE is forecasted to rise from 3.45% in 2024 to 10.30% in 2026, indicating improving profitability and efficiency [11]