BOE A (000725): Counter-cyclical expansion boosts revenue, panel price bottoms out, drags profits
Event: The company recently released the third quarter report for 2019, and the company achieved revenue of 857 in the first three quarters.
22 ppm, an increase of 23 in ten years.
4%, operating profit 11.
29 ‰, 70 years ago.
4%, net profit attributable to mother 18.
52 ppm, -45 per year.
18%, deducting non-net profit -1.
89 ‰, ten years -110.
13%, in line with expectations.
Single quarter revenue of 306 in 3Q19.
8.3 billion, a 10-year growth rate of 18.
1%, the main diabetes Hefei 10.
5th generation production line contribution.
The 5th generation line was put into production in early 2018, with a designed production capacity of 120K / month, mainly producing 65-inch and 75-inch panels.
The production line has reached full capacity in the first half of this year, so the production capacity in the third quarter has continued to increase compared with the same period last year, driving the company’s revenue growth.
Panel prices continued to bottom out, dragging down the company’s profit margin.
In the third quarter, panel prices continued to bottom out. Among them, the price of 32-inch panels changed from US $ 41 in June to US $ 32 in September.
Affected by this, the gross profit margin of 3Q19 companies decreased by 4 from the previous month.
1 up to 11.
8%, down 6 previously.
5pcts, a new low since 2Q16.
The single-quarter operating profit in the third quarter of 19 began to exceed 5 for the first time since 2Q16.
8.8 billion yuan.
Construction in progress is at a high level and inventory turnover has improved.
Projects under construction in the third quarter of 1960.
9.9 billion, a record high, mainly Wuhan G10.
5, Chengdu G6, Mianyang G6 and other production lines.
The panel industry is an investment-driven industry, and the company’s countercyclical expansion is the key to establishing a competitive advantage.
The inventory turnover rate in the third quarter was 249.
9%, compared with 199 in the second quarter.
2% and 3Q18 of 213.
4% supplementation improved.
Maintain the “overweight” rating.
Panel prices have continued to decline, and major panel manufacturers have all been shrinking to varying degrees. Due to competition and profit pressures, overseas companies have sought transformation.
Both Samsung SDC and LGD have stated their intention to successively switch LCD production lines to OLED.
As global panel makers, the transformation of Samsung and LGD is expected to provide improvements to the industry.
However, considering that the 淡水桑拿网 adjustment of overseas production lines has exceeded expectations, we will forecast the company’s profit for 2019-2021 from the previous 27.10, 56.
70 and 99.
79 trillion is down to 23.
72 and 92.
8.7 billion, corresponding to 53.
9x and 13.
4x, maintaining “overweight” rating.
Risk warning events: Domestic manufacturers’ new capacity release exceeds expectations; overseas production line adjustments are postponed; downstream demand for panels is gradually expected.