} ?>
Event: The company will achieve operating income of 533 million yuan in 2024, a year-on-year increase of 3%; The net profit attributable to the parent company was 90 million yuan, a year-on-year decrease of 26.04%, and the non-net profit was 45 million yuan, a year-on-year decrease of 40.05%. In addition, the company announced the first quarter report of 2025, achieving operating income of 153 million yuan, a year-on-year decrease of 40.71%; net profit attributable to the parent company was 25 million yuan, a year-on-year decrease of 73.23%; deducted non-net profit of 13 million yuan, a year-on-year decrease of 82.12%. The annual report performance was in line with the forecast, and the performance of the first quarter was lower than market expectations, mainly because the equipment confirmation rhythm was different from the first quarter of 2024, and the equipment business was lower than expected. Investment Highlights:
OLED materials continue to grow rapidly, and evaporation sources are developing towards higher generation lines. According to the announcement, the company's materials business will achieve operating income of 363 million yuan in 2024, YoY +14.31%, and sales revenue of 136 million yuan in 25Q1, YoY +5.33%, a record high in material revenue in the first quarter. The R&D and marketing of the company's new product packaging materials, PSPI materials, and perovskite materials are progressing steadily, and it is expected that the market will gradually increase in 2025, injecting new impetus into performance growth. In terms of material research and development, the company has promoted the upgrading and iteration of GP, RP and BP, and accelerated the application of RD and RH production lines, and has achieved phased results. In 2024, the company will achieve a revenue of 169 million yuan in equipment business, a year-on-year decrease of nearly 30 million yuan, and in 2024, the company will successfully complete the acceptance of Xiamen Tianma Phase II and Chongqing BOE Phase III additional evaporation source projects, and successfully won the bid for the evaporation source equipment transformation projects of Mianyang BOE and Wuhan Tianma; 25Q1 achieved sales revenue of 16.93 million yuan, YoY-86.88%, the main OLED industry is in a critical transition period from G6 to G8.6 iterative upgrading, the company Q1 has successfully won the bid for BOE G8.6 evaporation source equipment order, the winning bid amount is 655 million yuan (tax included), which is expected to have a positive impact on the performance in 2025 and 2026, but does not rule out the possibility of delaying the recognition of revenue.
The OLED R&D landscape continues to expand. In 2024, the company's R&D investment will be 150 million, YoY +22.73%. According to the financial report, the company authorized 67 new invention patents throughout the year, and obtained a total of 392 invention patents. At present, the company has 26 projects under research, with a cumulative investment of 308 million. The company has actively deployed in the field of key materials for OLED display, and has launched 4 products around PSPI photoresist. Among them, the conventional model PSPI has passed the downstream mass production line test to achieve stable supply; The high-sensitivity iterative model is undergoing the final stage of testing in the downstream panel factory, and it is progressing smoothly; PFAS-FreePSPI fluorine-free photoresists and BPDL black photoresists are in the final sprint for performance optimization. The company's self-developed thin film encapsulation materials have become the first supplier in China to pass the certification of panel factories, and are successively promoting the research and development and marketing of functional materials such as low dielectric power.
It is expected to benefit from a new round of equipment expansion cycle. According to the announcement, the company received the notice of winning the bid for the Chengdu BOE G8.6AMOLED project on February 20, 2025, with a winning bid amount of about 655 million. The market demand for high-generation display panel production lines is growing, and the company is expected to win more equipment orders as the G8.6 construction process continues to accelerate and continue to advance.
Adjusted earnings forecasts and maintained "buy" rating. Due to the current transition period of the OLED industry from G6 to G8, we have lowered the company's G6 evaporation source equipment shipments, adjusted the company's 25-26 net profit attributable to the parent company forecast to 206/252 million yuan (the original 259/338 million yuan), and increased the 27-year forecast of 305 million yuan, corresponding to a PE of 18/15/12X in 25-27 years, and a PE (TTM) of Wright Optoelectronics, a comparable company of luminescent materials, is about 50X, maintaining a "buy" rating.
Risk warning: the order of evaporation source is less than expected; The prosperity of the OLED industry is less than expected; Supply chain risk.
Ticker Name
Percentage Change
Inclusion Date