Shentianma A (000050) Annual Report 2018 Review: Performance Expectations In the Future, Small and Medium-sized Panel Market Competition Pressure Will Slow Down


Shentianma A (000050) Annual Report 2018 Review: Performance Expectations In the Future, Small and Medium-sized Panel Market Competition Pressure Will Slow Down

The impact of asset impairment caused 2018’s performance to be lower than expected. The company’s revenue in 2018 was 289.

11 trillion, +21 after 10 years of gradual adjustment.

35%, net profit attributable to mother 9.

2.5 billion US dollars, gradually adjusted the second half of -15.

17%, deducting non-net profit -0.

4.4 billion.

The performance was lower than market expectations, and was initially affected by the previous Gionee event. The company’s accrued asset impairment loss of 608.89 million yuan in 18 years affected the decrease in profit in 2018.

09 million yuan, net profit attributable to owners of the parent company decreased by 5.

1.7 夜来香体验网 billion.

Adding back the impairment loss, the net profit attributable to the mother for 18 years was 14.

43 ppm, an increase of about 32 per year.


The overall layout of the smart terminal, vehicle, IOT and other small and medium size panel markets has continued to oversupply for 18 years, and the overall sales of smart phones have improved. The company actively grasps the upgrade potential of the small and medium size panel market and grasps comprehensive consumer electronics screens.In the fields of automotive and industrial control, revenue reached record highs, and LTPS investment ranked first in the world.

Deeply plow the four core markets of mobile smart terminals, automotive, industrial, IoT / new applications, etc., using a-Si conversion, LTPS leading, AMOLED breakthrough and new technological innovation, four major breakthroughs, both soft and hard strength, pursuit of the coreMarket leadership.

After the LTPS expansion cycle ended, the profit stabilized, waiting for the release of OLED production capacity. The latest round of LTPS expansion cycle has basically ended in 19 years, and the product price has stabilized. Subsequently, LTPS was gradually adopted to further increase the penetration of low-end and mid-range smartphones.The company firmly grasps the trend of full-screen and continues to lead the market in the new generation of full-screen solutions. The application and implementation of technologies such as AA holes and COF have led the industry.

OLED has achieved expansion of brand customers, and continues to climb production capacity and yield, and is expected to start contributing profits after 19 years.

The leader in the small and medium size display panel with the best competitive advantage. The company is given an “overweight” rating. The company continues to cultivate in the field of small and medium size panels, with a comprehensive and comprehensive product line and better technical reserves and capabilities.OLED is expected to continue to ramp up production capacity and improve yield.

The company is expected to have a net profit of 19-21 in 19-21.



30,000 yuan, corresponding to EPS0.



42 yuan, a year-on-year growth rate of 109% / 21.

6% / 23.

3%, the current sustainable corresponding PE is 18/14 / 12x times.

Give “overweight” rating.

Risk reminders: First, the oversupply of the panel industry has led to a continued decline in panel prices.

Second, OLED capacity release and yield improvement did not meet expectations