BOE(SZ:000725) Southwest Securities·2024-04-08 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a total revenue of 174.54 billion yuan in 2023, a year-on-year decrease of 2.2%, and a net profit attributable to shareholders of 2.55 billion yuan, down 66.2% year-on-year. However, the non-recurring net profit showed a significant improvement, with a growth of 71.7% year-on-year, reaching -0.63 billion yuan [2][10] - The company expects a gradual recovery in TV demand in 2024 after three years of decline, with an average shipment size projected to increase from 50.7 inches in 2023 to 52 inches in 2024. IT demand is also anticipated to rebound as interest rate hikes near their end [2][10] - The company achieved an OLED shipment volume of nearly 120 million units in 2023, a 50% year-on-year increase, and expects to maintain a growth rate of 30% in 2024, reaching 160 million units [2][10] Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 174.54 billion yuan, with the display device business generating 147.05 billion yuan, IoT innovation business 38.90 billion yuan, MLED business 2.90 billion yuan, smart healthcare services 2.79 billion yuan, and sensor solutions 0.41 billion yuan [2][9] - The gross margin and net margin improved year-on-year, with gross margin at 12.6% and net margin at 0.2%, both showing increases of 0.8 percentage points and 1.2 percentage points respectively [2][10] Future Projections - Revenue projections for 2024-2026 are 216.60 billion yuan, 246.94 billion yuan, and 270.94 billion yuan respectively, with net profits expected to be 4.84 billion yuan, 9.77 billion yuan, and 15.92 billion yuan respectively [3][10] - The company anticipates a recovery in the display device business, with a projected growth rate of 24.1% in 2024, followed by 14.0% in 2025 and 9.7% in 2026 [9][10] Market Position - The company is positioned as a leader in the OLED market, with over 50% market share in LTPO and a record high in foldable screen shipments. The structural improvement in OLED products is expected to enhance profitability [2][10]