BOE(SZ:000725) Huajin Securities·2024-02-04 16:00Investment Rating - The investment rating for the company is "Add-A" [2] Core Views - The company is expected to see significant growth in net profit for Q4 2023, with estimates ranging from 1.278 billion to 1.478 billion yuan, representing a quarter-on-quarter increase of 347% to 417% [1] - The company is focusing on the Micro OLED and Micro LED technologies, which are anticipated to meet the demands of the mid-to-high-end XR consumer market, driven by leading global brands [1][2] - The company is establishing a new semiconductor display production line in Beijing, utilizing LTPO technology, aimed at producing VR displays for the rapidly growing metaverse market [1] - The company has a strategic plan to enhance its production capabilities in Micro LED technology, with a manufacturing base in Zhuhai expected to achieve mass production by December 2024 [1] Financial Performance - The company forecasts a total revenue of 180.573 billion yuan for 2023, with a slight year-on-year growth of 1.2% [4] - The adjusted net profit for 2023 is projected to be between 2.319 billion and 2.519 billion yuan, reflecting a year-on-year decline of 69.3% [4] - The company anticipates a recovery in net profit to 4.331 billion yuan in 2024, with a growth rate of 86.8% [4] - The projected P/E ratios for the upcoming years are 59.3 for 2023, 31.7 for 2024, and 13.7 for 2025, indicating a potential improvement in valuation as earnings recover [4] Market Position and Strategy - The company is actively enhancing its product offerings in the OLED market, particularly in flexible AMOLED displays, which have seen a significant increase in shipment volume, reaching nearly 120 million units in 2023 [2] - The company is also focusing on upgrading its LCD products to AMOLED, particularly in the automotive and IT sectors, to capture a broader market share [2] - The strategic investments in new technologies and production lines are expected to position the company as a leader in the next-generation display technology market [1][4]