Guoxing Optoelectronics (002449) 2018 Annual Report Comments: Consolidate the Advantage of Small Pitch and Continue to Improve Profitability

Guoxing Optoelectronics (002449) 2018 Annual Report Comments: Consolidate the Advantage of Small Pitch and Continue to Improve Profitability

Investment Highlights The company achieved operating income in 201836.

27 ppm, an increase of 4 per year.

44%, net profit attributable to mothers4.

460,000 yuan, an increase of 24 in ten years.

06%.

The company expects to achieve zero net profit attributable to mothers in the first quarter of 2019.

96 ppm-1.

21 ppm, an increase of 20-50% per year.

   Firmly encapsulate the main business as the core and steadily increase profitability.

In 2018, the company’s packaging business revenue reached 32.

50 ppm, a ten-year increase of 5.

97%, accounting for about 90% of total revenue.

The short-term growth rate of the company’s 四川耍耍网 revenue is mainly due to the economic downturn affecting downstream demand.

In the context of lower downstream demand and lower upstream chip prices, the company grasped the pace of expansion of production and increased profitability. The gross profit margin of the packaging business was estimated to have increased by 1 last year.

87 averages, reaching 26.

84%.

LED chip business and application business, the company was affected by the general environment, revenue fell 17% and 29%.

In the future, the company will still implement the strategy of vertical integration of the industrial chain, strengthen the coordination and support of packaging upstream, expand market segments downstream, and adhere to the midstream packaging as the core.

   The small pitch continues to boom, and the company’s Mini product industry 深圳桑拿网 leads.

It is said that LEDinside, the global small-pitch LED market size reached 19 in 2018.

US $ 9.7 billion, an annual growth of 39%, and CAGR is expected to reach 28% in the next four years.

The company’s small-pitch devices are in the leading position in the industry and continue to expand on mini products. In 2018, the company took the lead in launching modules such as mini LED four-in-one products and mini backlights.

How to quickly penetrate micro-products in the future and achieve rapid growth in the company’s related revenue.

   Invested USD 1 billion to expand production capacity and strengthened the position of the industry leader.

Based on the continued growth of the demand for small pitches and even Mini LEDs, the company proposed a capacity expansion plan of $ 1 billion for LED packaged devices and chips to replace the capacity replacement, and the order was used for replacement, thereby further consolidating its display device fieldLeading rank of status.

Looking forward to 2019, relying on the rapid growth of the display device business, the company aims to achieve a gradual increase of 10% -30%, and the profit level is expected to further increase.

  Investment proposal Due to downstream demand due to macroeconomic impact, the company’s lighting products business was less than expected, so the company’s profit forecast was lowered.

The 19/20 operating income and net profit attributable to mothers are lowered. The adjusted operating income of the company for 19/20/21 is 41.

71/52.

84/59.

3.2 billion, adjusted the company’s net profit attributable to the mother in 19/20/21 is 5 respectively.

49/7.

43/8.

44 trillion, corresponding to 0 EPS.

89/1.

20/1.

36 yuan, PE 16/12/10 times.

Maintain the “overweight” rating. Risks suggest that the development of small-pitch new markets is less than expected; the company’s expansion of production is less than expected.