CHANGELIGHT(SZ:300102) Changjiang Securities·2024-06-10 05:31Investment Rating - The report assigns a "Buy" rating for the company, projecting a net profit of 1.25 billion, 2.05 billion, and 3.24 billion for 2024-2025, with corresponding PE ratios of 45, 27, and 17 [93]. Core Insights - The company, Qianzhao Optoelectronics, is positioned as a leading player in the LED chip market, focusing on Mini/Micro LED technologies and benefiting from strategic investment by Hisense, which enhances its growth prospects [91][97]. - The LED industry is experiencing a recovery, with a significant increase in demand for small-pitch direct display and Mini/Micro LED applications, driven by the resurgence of commercial activities and technological advancements [91][40]. - The report highlights the expected growth in the global LED display market, with a compound annual growth rate (CAGR) of 12% from 2022 to 2027, particularly in the Mini LED segment, which is projected to reach a market size of 7.389 billion by 2027 [18][26]. Summary by Sections Company Overview - Qianzhao Optoelectronics was established in 2006 and listed in 2010, focusing on the LED industry and achieving the highest market share in red and yellow chips in China [75][97]. - The company has entered into a strategic partnership with Hisense, which has become its controlling shareholder, enhancing its capabilities in Mini/Micro LED technologies [104]. Financial Performance - The company has maintained a revenue growth rate of 21% year-on-year, indicating a strong recovery trend in the LED industry [4]. - The net profit figures show a positive trajectory, with expectations of turning losses into profits by the end of 2023 [87]. Market Trends - The LED market is transitioning from a growth phase to a more cyclical nature, with stable demand from mainstream downstream applications [40]. - The report notes that the penetration rate of LED lighting products is increasing, with exports of LED lighting products growing by 37.8% compared to 2019 [43]. Technological Advancements - The report emphasizes the shift towards high-efficiency LED lighting, which is gradually replacing traditional lighting methods globally [10]. - Mini LED technology is highlighted as a key area for growth, with significant investments from various manufacturers, including Hisense, to enhance product offerings [24][32].