Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The company reported a revenue of 45.9 billion yuan for Q1 2024, representing a year-on-year growth of 20.84%. The net profit attributable to shareholders was 984 million yuan, a significant increase of 297.80%, closely aligning with the upper limit of forecasts. The net profit after deducting non-recurring items was 597 million yuan, marking a substantial turnaround from losses. The net operating cash flow reached 16.2 billion yuan, up 60.34% year-on-year. Non-recurring gains mainly consisted of government subsidies amounting to 449 million yuan [4][5]. Summary by Sections Financial Performance - For Q1 2024, the company achieved a revenue of 45.9 billion yuan, a 20.84% increase year-on-year. The net profit attributable to shareholders was 984 million yuan, reflecting a 297.80% increase. The net profit excluding non-recurring items was 597 million yuan, indicating a significant recovery from previous losses. The net operating cash flow was 16.2 billion yuan, up 60.34% year-on-year, with non-recurring gains primarily from government subsidies of 449 million yuan [4][5]. Market Outlook - According to Omdia statistics, the LCD panel utilization rates for January to March were 75%, 64%, and 82%, respectively, showing a slight improvement from the average in Q4. The company’s LCD business faced minimal sequential decline pressure. Looking ahead to Q2 and Q3 of 2024, traditional panel stocking season is expected to drive demand due to major sporting events, which will likely lead to continued price increases for large-size LCDs. The prices for 65-inch and larger TV panels have already surpassed last year's peak levels, with further upward trends anticipated. Additionally, some IT products are showing slight price increases due to production capacity constraints, which is beneficial for the company [5]. Future Projections - The company aims to achieve a shipment target of 160 million flexible OLED panels for the year, representing over 30% growth. There are expectations for price increases in entry-level Android products, which may help the flexible OLED business reach breakeven or reduce losses. The operating cash flow for 2024 is projected to exceed 45 billion yuan, and if capital expenditures remain at last year's levels, free cash flow could surpass 20 billion yuan. As capital expenditure needs decline in the future, there is significant potential for increased dividends, positioning the company as a high-dividend asset in the future. EPS estimates for 2024-2026 are projected at 0.18, 0.29, and 0.40 yuan, with corresponding P/E ratios of 24.20X, 15.03X, and 10.86X [5].

Investment Rating - The report initiates coverage on BOE A (000725 SZ) with a "Recommend" rating [2] Core Views - BOE is a global leader in display panels, with its LCD and OLED businesses positioned to benefit from industry trends [4] - The company's LCD business is expected to stabilize as industry cycles weaken, while its OLED business is poised for growth and profitability [4][7] - BOE's OLED business is rapidly expanding, with significant technological and production advantages, and is expected to achieve profitability soon [4][7] Business Overview - BOE has a dominant position in the LCD market, with 6 G8 5/G8 6 and 2 G10 5 high-generation LCD production lines, making it the largest in the industry [4] - The company's OLED business is growing rapidly, with three G6 AMOLED production lines and a planned G8 6 high-generation OLED line targeting mid-sized IT products [4][7] - BOE's OLED shipments reached nearly 120 million units in 2023, with expectations to grow to 160 million units in 2024, covering almost all major domestic smartphone manufacturers [4] Financial Performance - BOE's revenue has shown significant fluctuations, peaking at 2210 4 billion yuan in 2021, with a decline to 1745 4 billion yuan in 2023 [4] - The company's net profit also fluctuated, reaching a peak of 25 96 billion yuan in 2021 and dropping to 2 55 billion yuan in 2023 [4] - For 2024-2026, the report forecasts revenue growth of 21 4%, 15 6%, and 9 2%, with net profit growth of 160 3%, 46 8%, and 29 5%, respectively [5] Industry Trends - The LCD industry is maturing, with production capacity concentrated in China, leading to a weakening of the industry's cyclical nature [4][17] - OLED technology is rapidly gaining ground in small-sized applications like smartphones and is expanding into mid-sized IT products, with significant growth potential [4][29] - The global OLED market is expected to grow, with BOE well-positioned to benefit from this trend due to its technological and production capabilities [4][29] Strategic Initiatives - BOE has adopted a "Screen of Things" strategy, focusing on integrating screens into various IoT applications and expanding its ecosystem [12] - The company is investing heavily in MLED technology, with a focus on both backlight and direct display applications, aiming to enhance its competitive edge in the display industry [44][45] Valuation and Recommendations - The report values BOE at 24 8X, 16 9X, and 13 0X PE for 2024-2026, respectively, based on its strong market position and growth potential in both LCD and OLED sectors [53] - The "Recommend" rating is based on BOE's leading position in the display panel industry, its technological strengths, and the favorable industry outlook [53]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's Q1 2024 performance shows impressive growth, with revenue reaching 45.89 billion yuan, a year-on-year increase of 20.8%. The gross margin improved to 14.5%, up 7.6 percentage points from the previous year, and net profit attributable to shareholders surged by 297.8% to 980 million yuan [2][3] - The company continues to lead in the LCD sector and is rapidly advancing in the OLED industry, with significant investments in flexible AMOLED production lines, positioning itself for substantial growth in this segment [3] - The company is strategically expanding its "1+4+N" ecosystem to capitalize on opportunities in the smart IoT era, with innovations in various applications including smart vehicles and MLED technology [3] Financial Forecasts and Valuation - The company is expected to benefit from the recovery in panel demand, with projected net profits of 4.55 billion yuan, 9.04 billion yuan, and 15.5 billion yuan for 2024, 2025, and 2026 respectively. The corresponding P/E ratios are forecasted to be 36, 18, and 11 times [3][9]

Investment Rating - The report assigns a "Buy-A" rating to BOE A (000725 SZ) with a 6-month target price of 5 19 RMB [4][5] Core Views - BOE A's Q1 2024 revenue reached 45 888 billion RMB, a YoY increase of 20 84%, with net profit attributable to shareholders surging 297 8% to 984 million RMB [1] - The company's LCD TV utilization rate exceeded 85% in March 2024, driven by strong demand and price increases in TV and IT products [2] - BOE A aims to achieve a 30% YoY growth in flexible AMOLED shipments, targeting 160 million units in 2024 [2] Industry and Market Position - BOE A maintains its leading position in the global LCD market, ranking first in shipments across five major application segments [3] - The company achieved a global first in shipments of ultra-large size (≥85 inches) LCD products and made breakthroughs in high-end TV markets with its ADS Pro technology [3] - In the OLED sector, BOE A shipped nearly 120 million flexible AMOLED units in 2023, with significant profitability improvements in mature production lines [3] Financial Projections - Revenue is projected to grow from 209 055 billion RMB in 2024 to 263 799 billion RMB in 2026, with net profit expected to increase from 5 122 billion RMB to 23 992 billion RMB over the same period [4] - The company's gross margin is forecasted to improve from 16 29% in 2024 to 17 11% in 2026 [8] Technological Innovation and Patents - BOE A has accumulated over 90,000 patent applications, with more than 30,000 related to flexible OLED technology [3] - The company ranks 15th globally in US patent authorizations for the sixth consecutive year, with over 40,000 valid patents worldwide [3] Valuation and Peer Comparison - The report values BOE A at 1 5x PB (MRQ), based on comparable companies TCL Technology and Rainbow Optoelectronics [4][9] - BOE A's current PB ratio is 1 28, lower than TCL Technology's 1 67 and Rainbow Optoelectronics' 1 41 [9]

[Key Financial Data](index=3&type=section&id=Item%20I.%20Key%20Financial%20Data) The company achieved significant financial growth in Q1 2024, with substantial increases in revenue, net profit, and operating cash flow, driven by sales expansion and favorable exchange rates [Key Accounting Data and Financial Indicators](index=3&type=section&id=Item%20%28I%29%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2024, the company achieved strong performance, with revenue growing by 20.84% year-over-year, net profit attributable to shareholders increasing significantly by 297.80% to turn losses into profits, and net operating cash flow improving by 60.34% Key Financial Indicators for Q1 2024 | Indicator | Current Period | Prior Period | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Billion Yuan) | 45.89 | 37.97 | +20.84% | | Net Profit Attributable to Shareholders (Million Yuan) | 983.81 | 247.32 | +297.80% | | Net Profit Attributable to Shareholders Excluding Non-recurring Items (Million Yuan) | 596.69 | -1,667.93 | +135.77% | | Net Cash Flow from Operating Activities (Billion Yuan) | 16.23 | 10.12 | +60.34% | | Basic Earnings Per Share (Yuan/Share) | 0.026 | 0.003 | +766.67% | | Weighted Average Return on Net Assets | 0.76% | 0.09% | +0.67 percentage points | [Non-recurring Gains and Losses Items and Amounts](index=3&type=section&id=Item%20%28II%29%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, total non-recurring gains and losses amounted to 387.12 million Yuan, primarily from government grants (449.28 million Yuan), partially offset by fair value changes in financial assets (-45.78 million Yuan) Key Non-recurring Gains and Losses Items for Q1 2024 | Item | Amount (Million Yuan) | | :--- | :--- | | Government grants included in current profit and loss | 449.28 | | Gains or losses from disposal of non-current assets | 36.58 | | Other non-operating income and expenses | 46.26 | | Fair value changes in financial assets and liabilities | -45.78 | | Impact on minority interests (after tax) | -103.79 | | **Total** | **387.12** | [Changes and Reasons for Key Accounting Data and Financial Indicators](index=4&type=section&id=Item%20%28III%29%20Changes%20and%20Reasons%20for%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, significant changes occurred in income statement items such as financial expenses and investment income, as well as various cash flows, with financial expenses decreasing by 58% due to increased exchange gains, operating cash flow increasing by 60.34% due to expanded sales, and net investment cash flow decreasing by 1414.08% due to reduced cash recovery from investments - Reasons for Income Statement Item Changes - **Financial expenses decreased by 58% year-over-year**: primarily due to increased net exchange gains during the reporting period[9](index=9&type=chunk) - **Other income decreased by 73% year-over-year**: primarily due to reduced government grants during the reporting period[9](index=9&type=chunk) - **Investment income decreased by 176% year-over-year**: primarily due to reduced investment income recognized from associates during the reporting period[9](index=9&type=chunk) - **Fair value change gains decreased by 150% year-over-year**: primarily due to reduced gains from equity instrument investments during the reporting period[9](index=9&type=chunk) - Reasons for Cash Flow Statement Item Changes - **Net cash flow from operating activities increased by 60.34% year-over-year**: primarily due to increased sales volume during the current reporting period[9](index=9&type=chunk) - **Net cash flow from investing activities decreased by 1,414.08% year-over-year**: primarily due to reduced net cash recovered from investments during the current reporting period[9](index=9&type=chunk) - **Net cash flow from financing activities increased by 66.34% year-over-year**: primarily due to repayment of perpetual bonds and share repurchases in the prior year period[9](index=9&type=chunk) [Shareholder Information](index=4&type=section&id=Item%20II.%20Shareholder%20Information) As of the end of the reporting period, the company had over 1.18 million common shareholders, with the top ten shareholders holding approximately 27.88% of the shares, led by a state-owned legal entity [Shareholder Holdings](index=4&type=section&id=Item%20%28I%29%20Total%20Number%20of%20Common%20Shareholders%20and%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights%20and%20Top%20Ten%20Shareholders%27%20Holdings) As of the end of the reporting period, the company had 1,182,138 common shareholders, with the top ten shareholders collectively holding approximately 27.88%, and Beijing State-owned Capital Operation and Management Co., Ltd. being the largest shareholder with 10.79% - As of the end of the reporting period, the company had **1,182,138 common shareholders**, including **1,150,568 A-share shareholders** and **31,570 B-share shareholders**[10](index=10&type=chunk) Top Ten Shareholder Holdings | Shareholder Name | Shareholder Type | Holding Percentage (%) | | :--- | :--- | :--- | | Beijing State-owned Capital Operation and Management Co., Ltd. | State-owned Legal Entity | 10.79% | | Hong Kong Securities Clearing Company Limited | Overseas Legal Entity | 6.97% | | Beijing BOE Investment Development Co., Ltd. | State-owned Legal Entity | 2.18% | | Beijing Jingguorui State-owned Enterprise Reform and Development Fund (Limited Partnership) | Other | 1.91% | | Hefei Jianxiang Investment Co., Ltd. | State-owned Legal Entity | 1.77% | | Fuqing Huirong Venture Capital Group Co., Ltd. | Domestic Non-state-owned Legal Entity | 1.43% | | Industrial and Commercial Bank of China - Huatai-PineBridge CSI 300 ETF | Other | 1.07% | | Shanghai Gaoyi Asset Management Partnership (Limited Partnership) - Gaoyi Xiaofeng No. 2 Zhixin Fund | Other | 0.94% | | Abu Dhabi Investment Authority | Overseas Legal Entity | 0.92% | | Xu Lili | Overseas Natural Person | 0.90% | [Other Significant Matters](index=6&type=section&id=Item%20III.%20Other%20Significant%20Matters) During the reporting period, the company completed interest payments for its "22BOEY1" perpetual corporate bonds, implemented the second lifting of restrictions for restricted shares under the 2020 equity incentive plan, and elected new non-independent directors for the tenth board of directors - The company completed interest payments for its "22BOEY1" perpetual corporate bonds in March 2024, with **35.00 Yuan (tax inclusive) paid per 10 bonds**[15](index=15&type=chunk) - The conditions for the second lifting of restrictions on restricted shares granted under the company's 2020 equity incentive plan were met, allowing **716 incentive recipients to lift restrictions on 95.86 million shares**, representing **0.2546% of the company's total share capital**, with the listing and circulation date on April 11, 2024[16](index=16&type=chunk) - The company elected **Mr. Feng Qiang, Mr. Zhu Baocheng, and Mr. Wang Xiping** as non-independent directors of the tenth board of directors in April 2024[16](index=16&type=chunk) [Quarterly Financial Statements](index=6&type=section&id=Item%20IV.%20Quarterly%20Financial%20Statements) The quarterly financial statements show a stable asset structure with a slight decrease in total assets, while net profit significantly improved, and operating cash flow increased, reflecting enhanced financial health [Consolidated Balance Sheet](index=6&type=section&id=Item%201.%20Consolidated%20Balance%20Sheet) As of March 31, 2024, the company's total assets were 417.27 billion Yuan, a slight decrease of 0.46% from the end of the previous year, while equity attributable to shareholders was 130.36 billion Yuan, an increase of 0.72%, maintaining a stable asset structure with a notable increase in monetary funds Key Items from Consolidated Balance Sheet | Item | March 31, 2024 (Billion Yuan) | December 31, 2023 (Billion Yuan) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 417.27 | 419.19 | -0.46% | | Total Liabilities | 218.92 | 221.39 | -1.11% | | Equity Attributable to Parent Company Owners | 130.36 | 129.43 | +0.72% | | Total Owners' Equity | 198.35 | 197.80 | +0.28% | [Consolidated Income Statement](index=8&type=section&id=Item%202.%20Consolidated%20Income%20Statement) In Q1 2024, the company achieved operating revenue of 45.89 billion Yuan, a 20.84% year-over-year increase, with net profit attributable to the parent company reaching 983.81 million Yuan, a significant 297.80% year-over-year increase, successfully turning losses into profits and significantly improving profitability Key Items from Consolidated Income Statement | Item | Current Period Amount | Prior Period Amount | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue (Billion Yuan) | 45.89 | 37.97 | +20.84% | | Operating Profit (Million Yuan) | 586.28 | -1,050.33 | Turned losses into profits | | Total Profit (Million Yuan) | 634.74 | -992.33 | Turned losses into profits | | Net Profit Attributable to Parent Company Owners (Million Yuan) | 983.81 | 247.32 | +297.80% | | Basic Earnings Per Share (Yuan/Share) | 0.026 | 0.003 | +766.67% | [Consolidated Cash Flow Statement](index=10&type=section&id=Item%203.%20Consolidated%20Cash%20Flow%20Statement) During the reporting period, net cash flow from operating activities was 16.23 billion Yuan, a 60.34% year-over-year increase primarily due to expanded sales, while net cash outflow from investing activities was 9.40 billion Yuan and from financing activities was 3.65 billion Yuan, with cash and cash equivalents increasing to 55.35 billion Yuan at period-end Key Items from Consolidated Cash Flow Statement | Item | Current Period Amount (Billion Yuan) | Prior Period Amount (Billion Yuan) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 16.23 | 10.12 | +60.34% | | Net Cash Flow from Investing Activities | -9.40 | -0.62 | -1414.08% | | Net Cash Flow from Financing Activities | -3.65 | -10.86 | +66.34% | | Net Increase in Cash and Cash Equivalents | 3.26 | -1.58 | Turned negative to positive |

Group 1 - BOE (京东方) has commenced the second phase of its smart terminal project in Vietnam with a total investment of 2.02 billion RMB, focusing on the production of TVs, displays, and electronic paper [1] - The Smart GOAL strategy was unveiled, emphasizing technological innovation, global service, smart manufacturing, supply chain integration, and green low-carbon initiatives [1] - The project aims to produce 3 million TVs, 7 million displays, and 40 million electronic papers annually, with mass production expected by 2025 [1] Group 2 - The project is strategically located in the Ho Chi Minh industrial zone and is expected to enhance BOE's global industrial layout and service optimization [1] - It will create approximately 4,000 jobs and promote the development of local upstream and downstream industries in Vietnam [1] - BOE's smart terminal business has achieved over 10 million unit sales in various applications, including TVs and displays, and has adopted a new ODM model for tablets and laptops [1] Group 3 - BOE's Q1 2024 profit forecast indicates a net profit of 800 million to 1 billion RMB, representing a year-on-year increase of 223% to 304% [3][4] - The expected net profit after deducting non-recurring gains and losses is between 460 million and 660 million RMB, compared to a loss of 1.67 billion RMB in the same period last year [4] - Basic earnings per share are projected to be approximately 0.021 to 0.026 RMB, up from 0.003 RMB per share in the previous year [4]

Investment Rating - The report maintains a "Buy" rating for the company [7]. Core Views - The company's profitability is improving quarter by quarter, solidifying its leading position in the industry [7]. - The company reported a revenue of 174.54 billion yuan for 2023, a year-on-year decrease of 2.17%, and a net profit attributable to shareholders of 2.55 billion yuan, down 66.22% year-on-year [7]. - The company forecasts a net profit of 0.8 to 1.0 billion yuan for Q1 2024, with a non-recurring net profit of 0.46 to 0.66 billion yuan [7]. Summary by Sections Financial Performance - The company achieved a total revenue of 174.54 billion yuan in 2023, with a year-on-year decline of 2.17% [8]. - The net profit attributable to shareholders was 2.55 billion yuan, reflecting a significant year-on-year decrease of 66.22% [8]. - In Q4 2023, the company reported a revenue of 48.03 billion yuan, a year-on-year increase of 5.17%, and a net profit of 1.53 billion yuan, down 32.22% year-on-year [7]. Business Structure and Growth - The company continues to develop its "1+4+N" business structure, with display devices generating approximately 1470.53 billion yuan in revenue [7]. - The company maintains the largest global market share in LCD applications and has significantly increased its flexible OLED product shipments [7]. - The IoT innovation business generated 38.9 billion yuan in revenue, with smart terminal profits increasing by 105% year-on-year [7]. Market Position and Competitive Landscape - The company remains the global leader in LCD shipments and has optimized its product structure to focus on high-end flagship products [7]. - The exit and restructuring of Korean and Japanese panel manufacturers present integration opportunities for the company [7]. - The company has a flexible OLED market share of 16.4%, ranking second globally and first domestically [7]. Profit Forecast Adjustments - The profit forecasts for 2024 and 2025 have been adjusted to 4.55 billion yuan and 7.69 billion yuan, respectively, with a new forecast for 2026 at 9.66 billion yuan [7]. - The price-to-earnings ratios for 2024 to 2026 are projected at 35, 21, and 16 times, respectively [7].

Investment Rating - The investment rating for the company is "Buy-A" [2] Core Views - The company maintains its leading position in the semiconductor display sector and continues to drive its transformation into the Internet of Things (IoT) [1] - The company's net profit for Q1 2024 is expected to be between 800 million to 1 billion yuan, representing a year-on-year growth of 223% to 304% [1] - In 2023, the company achieved a total revenue of 174.543 billion yuan, with quarterly revenue showing a consistent upward trend [1] - The company remains the global leader in LCD shipments across major application areas, with significant advancements in high-end flagship products and OLED technology [1][4] - The supply-demand dynamics in the industry are improving, with a slowdown in LCD capacity expansion and an anticipated recovery in demand for 2024 [2][4] Summary by Sections Financial Performance - The company reported quarterly revenues of 37.973 billion, 42.204 billion, 46.337 billion, and 48.028 billion yuan for Q1 to Q4 in 2023, with net profits of 247 million, 488 million, 286 million, and 1.525 billion yuan respectively [1] - Revenue projections for 2024 to 2026 are adjusted to 199.887 billion, 213.440 billion, and 234.421 billion yuan, with growth rates of 14.5%, 6.8%, and 9.8% respectively [4] - The net profit forecast for 2024 to 2026 is set at 4.142 billion, 8.131 billion, and 11.955 billion yuan, with growth rates of 62.6%, 96.3%, and 47.0% respectively [4] Market Dynamics - The LCD production line expansion is nearing its end, leading to a more optimized supply structure, with Chinese manufacturers increasing their market share to 70% in 2023 [2] - The overall demand in 2023 was weak, but a recovery is expected in 2024, particularly in the TV panel market, driven by major sporting events [2][4] - The IT panel market is anticipated to rebound as PC hardware upgrades stimulate replacement demand [4] Strategic Initiatives - The company is actively pursuing IoT transformation, achieving significant market penetration in various sectors, including smart finance and digital healthcare [1] - The launch of new high-end products and strategic partnerships in key industries is expected to enhance the company's market position [1][4]

证券研究报告 | 2024年04月11日 京东方 A（000725.SZ） 买入 盈利能力逐季改善，LCD 行业开启稳定盈利新阶段 核心观点 公司研究·财报点评 4Q23营收同环比增长，盈利能力逐季度改善。公司发布2023年年报，2023 电子·光学光电子 年营收1745.43亿元（YoY-2.2%），归母净利润25.47亿元（YoY-66.3%）。 证券分析师：胡剑 证券分析师：胡慧 4Q23营收480.28亿元（YoY +5.2%，QoQ +3.6%），归母净利润15.25亿元 021-60893306 021-60871321 hujian1@guosen.com.cn huhui2@guosen.com.cn （YoY -32.5%，QoQ +432.7%）。2023年在供给端按需生产背景下，LCD TV S0980521080001 S0980521080002 面板价格温和波动，公司盈利能力逐步改善，自3Q22公司毛利率持续环比 证券分析师：周靖翔 证券分析师：叶子 改善，4Q23毛利率16.2%（YoY +10.3pct，QoQ +1.4pct）。 021-60375402 0755-81982 ...

证券研究报告 ＃＃iinndduussttrryyIIdd＃＃ 显示器件 ＃investSuggestion＃ ＃ ＃d京yCo东mpa方ny＃ A （ 000725 ） investSug 增持 ( 维ges持tionC）h 000725 面板价格持续上＃ 涨title＃ ，看好后市需求 ange＃ ＃createTime1＃ 2024 年04 月10 日 投资要点 ＃市场ma数rk据etData＃ ＃summary＃  事件：公司发布2023年年报，2023年全年实现营业收入1745.43亿元，同 市场数据日期 2024-04-09 比下降2.17%；归母净利润25.47亿元，同比下降66.26%；扣非归母净利润 收盘价（元） 4.33 -6.33亿元，同比减亏15.96亿；发布利润分配预案，拟每10股派发红利0.3 总股本（百万股） 37652.53 元（含税），股利支付率达到44%较上年有所提高。第四季度营业收入480.28 流通股本（百万股） 37453.57 亿元，同比增长5.17%，环比增长3.65%；归母净利润15.25亿元，同比下降 净资产（百万元） 129428.31 32.50%，环比 ...