LONGLI(SZ:300752) Tianfeng Securities·2025-04-21 14:33Investment Rating - The report assigns a "Buy" rating for the company with a target price of 27.6 CNY, indicating a potential upside from the current price of 18.16 CNY [5]. Core Views - The company has shown a strong recovery in profitability, achieving a net profit of 45.67 million CNY in 2023, compared to a loss in previous years, and is expected to continue this upward trend with projected profits of 103.46 million CNY in 2024 [4][25]. - The Mini LED backlight module market is expected to grow significantly, with the market projected to reach 125 billion CNY by 2026, driven by the technology's advantages over traditional LCD displays [2][4]. - The company has established a strong competitive position in the Mini LED backlight module industry, leveraging its technological advancements and a stable customer base [2][4]. Summary by Sections Company Overview - The company, established in 2007, specializes in the development, production, and sales of LED backlight display modules and has transitioned to focus on OLED narrow bezel technology [13][16]. - The company has formed partnerships with major players in the display industry, including BOE and TCL, and has maintained a leading position in the domestic LED backlight market [13][16]. Financial Performance - The company experienced revenue declines from 2021 to 2023 due to industry downturns but managed to turn a profit in 2023 with a net profit of 45.67 million CNY [4][25]. - The gross margin improved significantly from 6.4% in 2022 to 13.06% in 2023, reflecting effective cost management and operational efficiency [28][25]. Mini LED Business - The company is a key player in the Mini LED backlight module design and manufacturing segment, with a focus on technological innovation and cost reduction [2][34]. - The global Mini LED market is expanding rapidly, with significant growth expected in various applications, including consumer electronics and automotive displays [2][40]. OLED Narrow Bezel Technology - OLED technology is becoming the mainstream choice for small-sized displays, with a projected global penetration rate of 55% in smartphones by 2024 [3]. - The company has early investments in LIPO technology, which enhances the performance and reliability of OLED displays, positioning it well for future growth [3][4]. Investment Outlook - The report forecasts revenue growth for the company, projecting revenues of 12.98 billion CNY in 2024, 17.01 billion CNY in 2025, and 21.21 billion CNY in 2026 [4]. - The company is expected to achieve net profits of 1.03 billion CNY in 2024, 2.07 billion CNY in 2025, and 3.07 billion CNY in 2026, indicating strong growth potential [4].