BOE(SZ:000725) GOLDEN SUN SECURITIES·2025-06-18 10:53Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The acquisition of a 30% stake in Rainbow Optoelectronics is expected to enhance BOE's display business by improving product technology, increasing scale in large-size panels, and expanding market share [3][4] - The competitive landscape in the panel industry is anticipated to rebalance, with top manufacturers gaining more market power, potentially increasing their market share to over 70% [4] Summary by Sections Acquisition Details - BOE plans to acquire a 30% stake in Rainbow Optoelectronics for a base price of 4.849 billion yuan, which will reduce Rainbow's stake to 69.79% while still maintaining control [1] Company Operations - Rainbow Optoelectronics operates a G8.6 LCD panel production line with a monthly capacity of 120K glass substrates, focusing on high-resolution and large-size panels [2] - The company is set to enhance its production capacity for large-size panels from 30K/month to 60K/month by March 2025, aiming for full production by 2026 [2] Market Position and Strategy - The acquisition is expected to strengthen BOE's VA technology capabilities and enhance its competitive position in the 50-inch and larger panel segments [3] - The market share of BOE is projected to exceed 30%, solidifying its leadership in the 32-inch to 50-inch and large-size panel markets [3] Financial Projections - Revenue forecasts for 2025, 2026, and 2027 are 215.996 billion yuan, 239.566 billion yuan, and 264.058 billion yuan, respectively, with corresponding net profits of 9.415 billion yuan, 13.410 billion yuan, and 15.513 billion yuan [4][5] - The company's price-to-book (PB) ratio is estimated to be around 1.0 for 2025, indicating a favorable valuation [4]