LONGLI(SZ:300752) Tianfeng Securities·2025-04-22 00:23Investment 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 Viewpoints - 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 a forecasted market size of 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 capabilities, customer relationships, and cost advantages [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 a strong presence in various application fields such as mobile communications and automotive displays [13][16]. Mini LED Backlight Business - The company is positioned in the midstream segment of the Mini LED backlight module industry, focusing on design and manufacturing [34]. - The global Mini LED market is rapidly expanding, with significant growth expected in applications across consumer electronics, automotive displays, and VR devices [2][40]. - The company has invested heavily in Mini LED technology since 2016, achieving several technological breakthroughs and establishing a solid customer base [2][34]. 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 in this segment [3][4]. Financial Performance - The company experienced a decline in revenue from 2021 to 2023 but has successfully turned around its profitability, with a significant increase in gross margin from 6.4% in 2022 to 13.06% in 2023 [4][28]. - The company’s revenue is projected to grow to 1.3 billion CNY in 2024, with continued growth expected in subsequent years [4][25]. Research and Development - The company maintains a strong focus on R&D, with expenses constituting around 5% to 7% of revenue from 2021 to 2023, and has filed numerous patents in the Mini LED and Micro LED fields [28][30]. - The company is actively working on several innovative projects aimed at enhancing its product offerings and maintaining its competitive edge in the market [33].