MTC(SZ:002429) GOLDEN SUN SECURITIES·2024-05-31 01:01Investment Rating - The report initiates coverage with a "Buy" rating for the company [4]. Core Views - The investment logic for the company is based on its position as a leading TV ODM, benefiting from Walmart's acquisition of Vizio, the upcoming sports events, and rising panel prices, which are expected to lead to a turning point. The vertical integration in the LED sector is expected to open up growth opportunities [1]. Summary by Sections 1. Company Overview - The company is a leading global TV ODM and a large technology group with a comprehensive layout in the LED industry chain. The TV ODM business is the primary revenue contributor, with a focus on overseas markets. In 2023, the company achieved revenues of 17.17 billion and a net profit of 1.65 billion, with CAGRs of 8.9% and 12.4% from 2019 to 2023, respectively [1]. 2. LED Sector - The LED sector is characterized by vertical integration, with significant growth driven by breakthroughs in COB packaging technology and increasing demand in downstream applications. The company has established a full industry chain layout, including LED chip manufacturing, packaging, and COB display. In 2023, the LED segment's revenue grew by 19.1% [2][19]. 3. ODM Sector - The company is a top ODM manufacturer with a strong competitive edge in North America. In 2023, it shipped 10.5 million units, capturing 9.9% of the global ODM market. The acquisition of Vizio by Walmart is expected to benefit the company as it is the largest ODM for ONN. The upcoming sports events and rising panel prices are anticipated to create industry opportunities [3][19]. 4. Financial Forecast and Investment Recommendations - The company is expected to maintain a solid base in its TV ODM business while deepening its vertical integration in the LED sector, which will open up long-term growth potential. The forecast for net profit from 2024 to 2026 is 2.14 billion, 2.54 billion, and 2.95 billion, representing year-on-year growth rates of 34.4%, 19.0%, and 16.2%, respectively [3][19].