Hit the performance meeting | BOE: At present, the panel price has bottomed out, and the company's market value is absolutely underestimated

Core tip: On August 30, after the 2022 mid-term financial report was released, BOE held an online performance briefing. At the meeting, BOE Chairman and Executive Committee Chairman Chen Yanshun still firmly believed that the company's market value is absolutely underestimated, and the panel price has bottomed out, and will gradually walk out of the darkest moment in the industry.
On August 30, after the 2022 financial report was released, BOE held an online performance briefing. At the meeting, BOE Chairman and Executive Committee Chairman Chen Yanshun still firmly believed that the company's market value is absolutely underestimated, and the panel price has bottomed out, and will gradually walk out of the darkest moment in the industry.

Judging from the mid-year report, in the first half of 2022, BOE achieved revenue of 91.61 billion yuan, down 15.66% year-on-year; net profit attributable to the parent was 6.596 billion yuan, down 48.94% year-on-year; gross profit margin was 18.68%, down 11.88 percentage points year-on-year . Despite the decline in both revenue and profit, BOE's performance is still better than the industry average.

Regarding the reasons for the decline, BOE mentioned in its semi-annual report that the semiconductor display industry continued to hover at a low level, mainly due to the decline in panel product prices. For panel prices to continue to fall, Chen Yanshun believes that there are many factors that overlap. The overdraft consumption of the home economy in the past two years caused by the epidemic, the continuous increase in supply chain and logistics shipping costs caused by the influence of international political and economic environmental factors, and the substantial demand caused by the rigidity of consumer security caused by unexpected factors such as the Russian-Ukrainian war Decline, these effects are comprehensive, "I think it will continue for a period of time in the future, but it has also reached the bottom-building stage."

Chen Yanshun said that BOE is a leading company in the global semiconductor display industry. It has a global supply system, a global customer system, a global technology research and development system, and a global production guarantee system. The current operating pressures are mostly from Insufficient demand finally formed due to the superposition of many factors.

As for whether the stock price is undervalued, Chen Yanshun responded, "I do not evaluate the valuation logic of the capital market for China's industrial development, but I think the market value of BOE is absolutely undervalued." Through nearly 30 years of hard work, BOE has become one Zhang Baizhi has made China's semiconductor display industry from scratch, from small to large, and from weak to strong. At present, the production capacity, annual shipment volume and shipment area of ​​China's semiconductor display industry can rank first in the world. . BOE is a typical representative of China's semiconductor display industry, with total production capacity accounting for 28% of the global share, and annual shipments accounting for 26% of the global market share. , splicing and many other market segments can be ranked first in the world, and the total number of patents and annual new patent increments have achieved the first in the industry. This is achieved by generations of people through nearly 30 years of efforts with the support of the state. results.

Chen Yanshun said frankly that, from the current market point of view, after more than a year of rapid development, the semiconductor display industry has experienced a deep correction due to the overlapping influence of various factors. "However, under the severe market environment and the lack of industry demand, BOE has made adequate preparations from the beginning. We proposed the "three guarantees" strategy at the beginning of the year, namely, to ensure stable cash flow, ensure that market share does not decrease, and ensure that R&D expenses do not decrease. In the second quarter, we put forward the business guidelines of "be grateful, be firm and calm, practice hard, and gallop with ten thousand horses" according to the market environment at that time. It should be said that our judgment on the industry trend and the adjustment of business strategy are correct, Appropriate."

"Although it was difficult in the first half of the year, we still achieved good operating results compared with our peers, and our innovative business maintained a growth rate of 20% to 100% despite the market decline." Chen Yanshun said that the company's current core In the dark period of the market, keep a clear head, do your own thing firmly, and improve the technical product ability and market ability. "I believe that once the market picks up, BOE will be more resilient than its peers, and I am full of confidence in that."

For the future, "AMOLED is an important direction for flexible display in the future," Chen Yanshun said. Currently, BOE has three production lines in Chengdu, Mianyang and Chongqing. It will ship nearly 60 million units in 2021, and it will grow this year, ranking second in the world. Without making money, the technology is still in the process of rapidly increasing its penetration rate. I believe that after a period of rapid improvement and penetration, there will be a good life. The Kunming project is a silicon-based OLED project that provides high-PPI display product production lines for AR, VR and Metaverse. The current 12-inch silicon wafer production capacity is close to 10K, which is an industry with very good development prospects. BOE is a micro-display, AR /VR/ Metaverse silicon-based, glass-based core display device supplier.