BOE(SZ:000725) Guoxin Securities·2025-06-24 13:41Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][3][5] Core Views - The company plans to acquire 30% equity in Rainbow Optoelectronics, which is expected to help consolidate and expand its competitive advantage in the panel industry. This acquisition will enhance the company's product line and diversify its customer base, increasing the market share of the BOE system to over 30% [4][5][11] - The expected revenue growth for the company from 2025 to 2027 is projected at 13.3%, 8.3%, and 9.2%, reaching 2248 billion, 2434 billion, and 2659 billion respectively. The net profit attributable to the parent company is expected to grow by 64.0%, 39.8%, and 20.8%, reaching 87.30 billion, 122.04 billion, and 147.37 billion respectively [5][13] Summary by Sections Acquisition Details - On June 17, the company announced its intention to acquire 30% equity in Xi'an Rainbow Optoelectronics Technology Co., Ltd. from Rainbow Display Device Co., Ltd. at a base price of 4.849 billion [4][6] - Rainbow Optoelectronics is a subsidiary of Rainbow Display, focusing on display panels primarily for televisions, with sizes ranging from 32 to 100 inches. This acquisition is anticipated to enhance the company's product offerings and customer diversity [4][11] Financial Projections - The company is expected to achieve stable profitability in the panel industry, with revenue from display panels projected to reach 102.1 billion in 2024, accounting for 87.5% of total revenue. The net profit for Rainbow Optoelectronics is expected to be 6.51 billion and 13.39 billion for 2023 and 2024 respectively [6][11] - The financial forecast indicates a steady increase in revenue and net profit, with the current price-to-book ratios projected at 1.07, 1.02, and 0.96 for the years 2025, 2026, and 2027 respectively [5][13] Market Positioning - The acquisition is expected to balance the technology and product mix of the BOE system, further diversifying its customer base. The company currently operates an 8.6-generation VA production line, with a significant focus on 50-inch television panels, which are projected to account for 59% of total shipments in 2024 [11][12]