Jilin OLED(SH:688378) Tianfeng Securities·2025-02-13 07:54Investment Rating - The report assigns a "Buy" rating for the company with a target price of 31.61 CNY per share, based on a comparison with similar companies' PE valuation for 2025 [6]. Core Insights - The company, Jilin Oled Technology Co., Ltd., is a leading player in the OLED materials and equipment sectors, benefiting from the industry's shift from small to medium-sized displays [4][3]. - The company has shown significant revenue growth, with a CAGR of 14.5% from 2018 to 2023, and a revenue of 5.17 billion CNY in 2023 [2][31]. - The OLED industry is expected to maintain double-digit growth, with penetration rates projected to exceed 10% by 2027 [3][4]. Company Overview - Jilin Oled Technology Co., Ltd. was established in 2005 and has focused on the research and development of organic light-emitting materials, becoming one of the few domestic companies capable of producing these materials independently [1][17]. - The company expanded its business to include the development of evaporation source equipment in 2012, creating a complete industrial chain from R&D to production and sales [1][17]. - The company has a clear shareholding structure with a high proportion of shares held by consistent stakeholders, and a strong management team with extensive experience in the OLED industry [25][28]. Financial Performance - The company's revenue has increased from 0.41 billion CNY in 2017 to 5.17 billion CNY in 2023, with a gross margin consistently above 50% since 2017 [2][31]. - For 2024, the company is projected to achieve a revenue of 584.46 million CNY, with a growth rate of 12.99% [5]. - The company's net profit for 2024 is estimated to be 104.61 million CNY, reflecting a decrease of 14.44% compared to the previous year [5]. Industry Trends - The OLED industry is transitioning from small to medium-sized displays, with significant investments from panel manufacturers, indicating a new capital expenditure cycle [3][4]. - The penetration of OLED technology in consumer electronics is still low, at 7.22% as of 2023, suggesting substantial growth potential as major brands adopt OLED displays [3][4]. - The report anticipates that the OLED materials and equipment sectors will benefit from ongoing technological advancements and increased demand from downstream applications [4][12].