BOE A (000725): Long-term bullish advantage of leading performance over expectations

BOE A (000725): Long-term bullish advantage of leading performance over expectations

The report guide BOE released the 2019 semi-annual report on the evening of August 26.

  Investment Highlights The first-half performance exceeded expectations, and the affected demand was sluggish. The company achieved revenue of 550 in the first half.

390,000 yuan, an increase of 26 in ten years.

60%, net profit attributable to parent company is 16.

68 ppm, a decrease of 43 per year.

92%, lower-than-expected results (price cuts exceeded expectations), of which the second quarter of 2019 revenue was 285.

8.5 billion (+ 30% YoY).

48%), with a net profit of 6.

1.7 billion (YOY-35.

53%), the company’s Q2 gross margin was 15.

94%, net interest rate is 1%, down 4 in ten years.

06pct and 3.

07 points.

The single-quarter net profit and gross profit margin continued to decline, mainly due to sluggish demand and weak peak seasons, and prices continued to fall. In terms of main production lines 1) Hefei 10.

The overall product structure of the 5th generation line has reduced the operating rate; 2) The second phase of the Chengdu OLED line went online beyond expectations, and the scale adjustment will be adjusted downward.

  The overall supply capacity is larger than demand, and AMOLED + LCD expands its dual-track production to BOE10.

5th generation line and CLP Panda 8.

The 5th generation line was fully produced 杭州夜网 in the first quarter, and Huaxing Optoelectronics 10.

5th generation line and Huike 8.

The 6th-generation online production started climbing in the first half of the year, and the overall supply exceeded demand.

The 5th generation TFT-LCD production line has been moved in. It is expected to light up in Q4 this year. In addition, due to end-customer pressure, OLED is gradually exceeding expectations.Construction progressed as planned.

  Panel prices continue to fall, the peak season is not busy At the end of the first quarter of this year, the price of small-sized panels rebounded short-term, but the time only lasted for 1?
In February, the price of the second quarter was adjusted downward again. Under the dual pressure of trade friction and the trough of the display industry, the peak season of Q3 was not busy. In July and 无锡桑拿网 August, the price of the panel was generally falling.

  Earnings forecast and forecast The company expects net profit for the year 19-21 to be 47.



400,000 yuan, the corresponding EPS is 0.

14, 0.

18, 0.

25 yuan / share.

We are optimistic about the company’s profitability and future growth space, and give a “Buy” rating.

  Risks suggest that prices fell more than expected and production capacity climbed less than expected.