UNILUMIN(300232) 长城证券·2024-06-13 03:01Investment Rating - The report upgrades the company to a "Buy" rating, expecting the stock to outperform the industry index by more than 15% in the next 6 months [22][29] Core Views - The company's profitability improved in Q1 2024, with gross margin increasing by 4.99 ppts QoQ to 32.31%, and net margin rising by 3.12 ppts QoQ to 0.82% [2] - The company is expanding its Mini/Micro LED production capacity, planning to reach 10,000KK/month by the end of 2024, with COB capacity at 4,000KK/month and MIP capacity at 6,000KK/month [11] - The company is leveraging AI technology to create a "LED+AI" product matrix, targeting applications in education, entertainment, broadcasting, and enterprise sectors [5] - The global LED small-pitch display market is expected to reach 1.35 billion by 2026, with a CAGR of 40.08% [20] Financial Performance - In 2023, the company achieved revenue of 7.41 billion yuan, a YoY increase of 4.73%, and net profit attributable to shareholders of 144 million yuan, a YoY increase of 127.06% [9] - In Q1 2024, the company's revenue was 1.492 billion yuan, a YoY decrease of 8.31%, and net profit attributable to shareholders was 19 million yuan, a YoY decrease of 86.56% [9] - The company's gross margin in 2023 was 28.80%, a YoY increase of 2.00 ppts, and net margin was 1.73%, a YoY increase of 1.00 ppts [2] Industry Outlook - The company is a leader in Mini/Micro LED technology, with the highest shipment volume among B2B brand companies in Q1 2024 [20] - The company is expected to achieve net profit attributable to shareholders of 290 million yuan, 378 million yuan, and 464 million yuan in 2024, 2025, and 2026, respectively, with EPS of 0.27 yuan, 0.35 yuan, and 0.42 yuan [22] - The company's P/E ratio is expected to be 21X, 16X, and 13X in 2024, 2025, and 2026, respectively [22]