Leader Optoelectronics (002189) Series Report Two: The Power of Civilian Product Sword refers to 5G Mobile Phone Coating Leader

Leader Optoelectronics (002189) Series Report Two: The Power of Civilian Product Sword refers to 5G Mobile Phone Coating Leader

Report summary: Our Air Force analyzes Lida Optoelectronics ‘rapidly growing military products business. The company also has transitional technology transformation, extension and upgrading capabilities, and civilian products have achieved a leap from component to module to module.

Lida started with a military single-armed aiming observation equipment, and achieved the first domestic OEM production volume in the field of projectors.

After unremitting efforts, it successfully entered the consumer electronics market and replaced its place in the field of high-end mobile phone cameras.

In the next step, the main growth point of the company’s civilian products is the 5G mobile phone optical coating business, and its subsidiary Pangbang Optoelectronics has become a mainstream supplier in this field.

The automotive lens and mobile phone prism business grew rapidly.

In recent years, the company has transformed and upgraded its development through innovation-driven deployment of mobile intelligent terminals, intelligent network-connected automotive optical sensing modules and systems, and AR / VR optical waveguide devices.

At present, the company’s automotive lenses have achieved mass production, and more production lines have been completed and put into production; the development of 3D face recognition precision optical filters has also achieved staged results, which is expected to promote a new round of development of OLPF business; the company’s new developmentThe best CIOE2018 technological innovation award for AR optical waveguide devices; panoramic prisms for mobile phones, and under-screen fingerprint prisms have been successfully developed and achieved small batch production.

The optical component products have been equipped with Huawei P30, and technological breakthroughs or become industry standard.

The optical prisms produced by the company are currently equipped with Huawei P30 Pro periscope cameras. We estimate that the total allocation of Huawei P30 in 2019 will be 20 million units, and the company’s annual revenue will be around 30 million.

As a leading company in the field of smartphones, Huawei’s technological breakthroughs will become the industry standard in the future.

We predict that the periscope camera forecast business has a market space of approximately $ 600 million per year.

The subsidiary company Pangbang Optoelectronics has the world’s leading ultra-hard reflective 佛山桑拿网 film technology, mainly supplying 5G mobile phones.

Pingbang Optoelectronics was established in 2015, and Lida Optoelectronics and Nanfang Asset each hold 24% of its shares.

The sapphire-like superhard non-reflective film independently developed by Galvanized Optoelectronics is mainly used in mobile phone modules, automotive central control and fingerprint recognition modules, which solves the two major problems of mobile phones reflecting in direct sunlight and being easily scratched by sharp objects.

The second phase of Pingbang Optoelectronics is expected to be completed by the end of this year. It will achieve a total production capacity of 130 million pieces of super-hard optical coatings (annual) and drive the development of the coating equipment industry.

The Ministry of Industry and Information Technology 成都桑拿网 has officially issued a 5G commercial license. We expect terminal manufacturers to launch 5G mobile phones faster than base station construction. The demand for superhard films on glass, ceramic, and composite backplanes used by 5G mobile phones will increase significantly.

Company profit forecast and investment grade: The company’s 2019-2021 revenue is forecast to be 33.

1 billion, 38.

7.6 billion, 48.

7.6 billion, net profit attributable to mother is 2.

1.9 billion, 2.

6.3 billion, 3.

41 trillion, an increase of 31 in ten years.

37%, 20.

35%, 29.

28%, EPS is 0.

83 yuan, 1.

00 yuan, 1.

29 yuan, corresponding to the closing PE on June 10 is 24X / 20X / 16X, maintaining the “strongly recommended” level.

Risk reminder: The new-type civilian market has not expanded as expected, and technological progress has fallen short of expectations.