TCL Group (000100): The downturn in the economic downturn and the long-term growth are still no shortage of highlights

TCL Group (000100): The downturn in the economic downturn and the long-term growth are still no shortage of highlights

The TCL Group’s semi-annual report results are in line with expectations. The company completed its asset restructuring and delivery in April 1919. Based on the same caliber, the 19H1 company achieved revenue of 437.

80,000 yuan, an annual increase of 22.

5%, to achieve net profit attributable to mother 20.

90,000 yuan, an increase of 31 in ten years.

9%, located in the middle of the pilot’s guidance range of 20-22 trillion.

Excluding the impact of restructuring business data, according to the same caliber, 19H1 pro forma revenue 261.

20,000 yuan, an increase of 23 in ten years.

9%, pro forma net profit attributable to mother 20.

90,000 yuan, an increase of 42 in ten years.

3%.

The overall performance of 19H1 was in line with expectations.

The release of production capacity and the recognition of reorganization led to the company’s performance growth. Huaxing Optoelectronics achieved revenue of 162 in 19H1.

80,000 yuan, an increase of 33 in ten years.

5%, achieving a net profit of 10.

2 ‰, a decline of 7 per year.

8%.

Huaxing 19Q2 achieved revenue of 90.

300 million, an increase of 24 from the previous month.

6%, to achieve a net profit of 3.

3.7 billion, down 50.

7%.

Mainly due to the high inventory of downstream terminal products since 19Q2, and the purchase demand of manufacturers due to the Sino-US trade dispute, the price of TV panels has fallen rapidly, affecting the overall profitability of the industry.

Huaxing’s revenue achieved a relatively rapid quarter-on-quarter growth, mainly due to the release of T3’s production capacity. T3’s production capacity has reached 50K, and LTPS can rank second in the world.

19H1 large size area increased by 3 in ten years.

9%, the area of small size increases by 458% per year, and the turnover of small size has reached 43%.

2Q19 recognized net profit and loss of asset restructuring11.

50,000 yuan, driving growth in expected performance.

The LCD business boom continued to grow despite the downturn. From the second half of the year, the 成都桑拿網 conversion of the Samsung L8-1 production line to around 120K power generation is expected to gradually drive market supply and demand improvement.

Compared with overseas manufacturers, the domestic LCD manufacturers still have obvious advantages.

The production capacity of domestic high-generation lines continues to be developed. Compared with Korean and Taiwanese manufacturers, 55 “and above products have certain cost advantages, which helps maintain profitability under a low boom.

After 2021, there is no other new LCD production capacity in the world. It is expected that the industry ‘s prosperity is expected to resume from 20H2. During the period, if other South Korean and Taiwan production capacity is withdrawn, the recovery will gradually advance.

Shangxian products are expected to become the highlight of the growth of Huaxing Optoelectronics’ LCD products in recent years, mainly due to the maturity of supporting downstream product development. The five-year compound growth rate of related products is expected to exceed 20%.

The layout of OLED technology continues to lead, and the T4 production line is mass-produced. Huaxing Optoelectronics has earlier locked up the investment layout and technology development of high-end flexible AMOLED, and has the first G4 in China.

5 pilot line, and use this test line to complete a number of technical reserves, including narrow borders, screen cameras and so on.

At present, the performance of its narrow frame design solution reaches Samsung, and the research and development patent of under-screen cameras exceeds 120, leading the world.

At present, the T4 production line has been lit. All brand customers except A customer are in the proofing stage. It is expected that the 19Q4 production line will soon realize mass production replacement.

With the arrival of the 5G replacement cycle, 20 years of T4 throughput is expected to usher in release.

Investment recommendations and ratings exclude the impact of restructuring business data. Based on the combined scope after the restructuring, we predict that the company’s revenue for 2019-2021 will be 589.92, 637.

12,681.

7.1 billion, net profit attributable to mother is 41.

46, 46.

84, 52.

33 trillion, EPS is 0.

31, 0.

35, 0.

39 yuan, corresponding to PE is 11X, 9X, 8X, maintaining the “buy” level.

Risks suggest fluctuations in the industry’s business climate; capacity release progress is less than expected.