TCL Group (000100): Panel prices stabilize in the short term, and the long-term value of China Star Optoelectronics is underestimated
1. Regarding panel prices: they have stabilized in the short term, uncertainties remain in the medium term, and long-term Chinese leading manufacturers have the pricing power.
The short-term supply and demand are generally stable, and panel prices have fully entered the internal channel. The uncertainty of panel prices in the medium term mainly comes from the supply position. In the long-term, China’s leading manufacturers represented by BOE and TCL Huaxing hold the pricing power of future LCD panels.
2. Huaxing Optoelectronics TV panel line is full production and sales, LTPS profit expands, AMLED is in mass production, industrial financial business contributes stable income, sliding panel cycle, and reliable dividend rate guarantee.
3. The company’s long-term upstream layout is clear, and strategic synergies are enhanced. Around semiconductor displays, industrial finance and investment-driven business development and profitability have been steadily improved.
4. Actively participate in the mixed reform of state-owned enterprises, and the long-term value 北京桑拿洗浴保健 is still underestimated: the company’s high-quality financial assets exceed 18 billion U.S. dollars, excluding the financial assets company’s panel asset market value of about 35 billion, in 2017 the company acquired Huaxing Optoelectronics10.
At the time of 04% equity interest, Huaxing Optoelectronics estimated that it exceeded 40 billion yuan (according to approximately 1.
5x PB acquisition), the current value of Huaxing Optoelectronics is underestimated.
5. Investment suggestion: We maintain the unchanged net profit forecast for mothers in 2019-2021, which are: 40.
1 billion, 43.
5.2 billion, 47.
29 ppm, corresponding to the current PE of 13.
3x and maintain target price of 4.
28 yuan, as the expectations have been raised, adjusted from “buy” to “overweight” level.
6. Risk 合肥夜网 warning: TV panel prices continue to increase; TV demand continues to increase; small-size panels are fiercely competitive.