If you accidentally missed the A-share BOE, may wish to look to Hong Kong stocks Hua Xian Photovoltaic (0334.HK), also belong to the panel industry.
For example, in the new factory in Wuhan, the shareholder changed to Huaxing Optoelectronics Co., Ltd., and was ready to acquire Nanjing Hanniu Caixin. As these actions were carried out, the fundamentals of the company have undergone tremendous changes and it is very worthwhile to invest Concerned.
▌ a, Hua Xian's past lives
Hua Xian Photovoltaic is a Hong Kong-listed company under the TCL Group, which was listed back in Hong Kong in June 2015. The borrowed shell is Proview International.
Huaxian Optoelectronics was not listed at the time of listing in 2015 Huaxian Optoelectronics, but called TCL display technology.Afterward, Huaxian Optoelectronics set up a company in Wuhan, named Wuhan Huaxian Optoelectronic Co., Ltd. Wuhan Huaxian Photoelectric Company's fundamentals The impact is great, the future development of the company's focus, the company management think 'TCL Display Technology' name already can not reflect the company's current value, so, simply, the company's name changed to 'Huaxian photoelectric', I feel the name More in line with the company's status quo.
After the listing of Hua Xian Optoelectronics in 2015, the company's main business scope has not changed, has been focused on the smart phone display module and tablet display module field. Although the main business scope has not changed, the company's production capacity has been growing of.
Hua Xian major customers
Currently, Huaxian Optoelectronics has two module factories, located in Huizhou and Wuhan respectively, mainly supplying TCL Communications within TCL Group, accounting for 27% of the total revenue; Huawei, Jinli, LG Huawei and other smart phone manufacturers Supply Huizhou module factory was completed in 2014, Wuhan's module factory is a new factory, mass production in the fourth quarter of 2017. If nothing unexpected, 2018 Huaxian Optoelectronics will have a third module Factory - ready to buy Nanjing Han Yu Cai Xin.
▌ Second, shareholders, panel supply worry-free
As one of the listed companies under the TCL Group, Huaxian Optoelectronics was originally controlled by TCL Industry and later acquired by Huaxing Optoelectronics. Huaxing Optoelectronics instead controlled it.
Hua Xian Photoelectric acquired before and after the holding situation
Day flies well, why change the shareholders? By Huaxing Power Holdings, Huaxian Optoelectronics is still very happy, because Huaxing Power has revealed that the optical co-dream thing - panel.
Huaxing Power's production base in Wuhan has two production lines, the 6th generation of LTPS panel production line and the 6th generation of flexible AMOLED panel production line. The 6th generation of LTPS panel production line mainly produces LCD panels, AMOLED hard screen can also be produced according to market demand, the current Has been put into production, and has begun to supply Huaxian Optoelectronics, is expected to reach full capacity full sales in the first half of 2018. 6th generation flexible AMOLED panel production line is currently under construction, is expected to start production in the first half of 2019. The two panels The production line will become a stable panel source for Hualin Optoelectronics.
Huaxing sixth generation LTPS panel production line
Display module is mainly composed of three parts, panel, backlight and drive circuit, in which the panel accounted for about 45% of the total module cost, the module factory is of great significance.
Display the cost of the module
Module factory and downstream mobile phone customers talk about business, often encountered such a situation, some customers require the module factory has its own panel factory; after all, handset makers also hope that their upstream supply can be stable, do not want to suddenly appear off The situation of the goods.
Previously, the panel of Huaxian Optoelectronics was outsourced, the source of supply was not so stable, and a lot of losses were gained in the fight for customers. Now, the situation is different, and the parent company's panel has started to put into production and has been stable Supply of the company has not directly to Huawei, OPPO and VIVO direct supply, the panel supply is stable, the company has been actively seeking these three first-tier brand customers.
In the past, Huaxian LTPS panels were imported from abroad, which resulted in a lot of extra costs such as logistics fees, agency fees, tariffs, etc. These costs add up to about 5% of panel costs. The production line put into operation, you can get goods directly from Wuhan, is to save these costs.
In the field of mobile phones, OLED replaces LCD is the trend, the parent company in addition to the production capacity of LCD, the future will have OLED production capacity, in the future Huaxian Optoelectronics do not have to worry about the supply of OLED panels.
For the sake of the overall interests of the group, the parent company's panel will give priority to their own .According to the plan, the future of Wuhan panel 40% to 50% will be supplied to China Display, but also there will be price concessions in the panel The case of goods, will also give priority to guarantee the supply of China's photovoltaic.
In simple terms, is usually able to enjoy the price concessions, when out of stock do not have to worry about supply problems.
▌ Third, product upgrades, unit price, gross profit continued to improve
Huaxian optoelectronic products in accordance with whether the touch function to divide, can be divided into non-laminating products and non-laminating products, laminating products that have a touch function, non-laminating products that have no touch function.
Unit price of products continues to improve
In recent years, as the company's products continue to escalate, the proportion of laminating products is getting higher and higher. By the third quarter of 2017, the output of laminating products already accounts for about 50% of the total shipments of the company.
The overall unit price of Huaxian Optoelectronics products has been gradually increased in recent years due to the smooth introduction of In-cell products, LTPS products and full-screen products.
In June 2016, the company made the first In-cell module product. In July 2017, the company's full screen product shipment was completed. The customer is a well-known mobile phone brand in France and is also the first batch of full-scale production screen in China. LTPS products accounted for only 7% of the first half of 2016, up to 16% by the first half of 2017.
The company plans to continue to increase the proportion of LTPS and In-Cell products in 2018, with the support of Huaxing Optoelectronics, the proportion of planned LTPS can be raised to 40% to 50%, so the unit price of the company's products can be expected to increase by 2018 of.
Hua Xian photoelectric three quarters of 2017 shipments
Hua Xian Optoelectronics in the first three quarters of 2017 to 33.9 million, down 39.2%, operating income of 2.39 billion yuan, down 7.2%. Shipments decline in two aspects, one is the traditional peak season to the fourth Quarter of the transfer, the second is the downstream customers turn to full screen products, while the upstream full screen parts shortage.Huaxian Photoelectric revenues did not like the decline in shipments as serious, mainly because of the company product upgrades, unit price increase from last year 46 yuan over the same period increased to the current 71 yuan, an increase of up to 54%.
As Huaxian Optoelectronics upgraded its unit price, the gross profit margin of the company also increased. The company's gross profit margin for the first half of 2017 was 9.5%, an increase of 6.4% over the same period of last year.
▌ Fourth, the acquisition of HannStar Caixin, quickly into the car screen market
December 4, 2017, Huaxin Photoelectric announced that the company will acquire 51% to 81% equity of Nanjing Hanniu Caixin.
Just built a module factory in Wuhan, but also to acquire a module factory, the company's expansion speed very fast ah!
The purpose of the acquisition of Hannu Caixin two, one is to further expand the company's production capacity, the other is to carry out car screen business.The second purpose is the main purpose, because the company had no car screen business, and HannStar Yan's capacity to enhance the company's total capacity is limited, about 11% or so.
Car display
Different from the phone screen, car screen because of the use of the environment will have higher requirements. Car screen is in high temperature, high vibration environment, the use of temperature between -40 ℃ to 85 ℃, but also need to earthquake Moving, anti-electromagnetic radiation, high brightness and other requirements. Car screen certification standards are also very harsh, generally Europe and the United States and Japan customers need certification 2-3 years, domestic customers have to be certified for more than 1 year.
Hua Xian has always been doing mobile phone screen and flat screen, and no car screen experience accumulated; to do the car screen, you can develop from scratch, but the progress is too slow, the acquisition is an effective way to quickly carry out car screen business.
HannStar Caixin is a module factory under Taiwan's HannStar Display, located in Nanjing. Its main businesses include touch screen, tablet, laptop and car display module.
If the acquisition plan to be implemented as scheduled, Hua Hin Optoelectronic will be able to quickly enter the car market to maintain growth with Hannuoshi.
Car display to maintain growth
▌ Five, the company rapid expansion of production capacity, improve performance
In 2014, the Company moved into a new factory in Huizhou and added new equipment, which increased its production capacity to 72 million pieces / year and increased its production capacity to 80 million pieces / year by the end of 2015. However, The completion of the plant (Wuhan Huaxin Photovoltaic) and the completion of the HannStar Caixin acquisition are expected to increase to 144.4 million units / year by 2018.
Hua Xian photoelectric annual capacity growth
In the current capacity situation, the company's future performance how?
The shipment of Hua Xian Photoelectric Co., Ltd. in 2017 is expected to decline by 20% ~ 30%, but operating profit is expected to be around RMB3.6bn in 2016, taking into account the unit price of the Company, but the profit margin The net profit margin for 2016 is 2.5%, while the net profit margin for the first half of 2017 is 4.5%. The net profit margin for 2017 is expected to be 4.5%. The net profit for 2017 Reaching 160 million, an increase of 78% over the same period of last year.
Hua Xian photoelectric performance forecast
The 2018 results mainly consider the gradual release of Wuhan factory capacity growth, a conservative estimate of Wuhan shipments of 25 million, according to the current overall unit price of 71 yuan to estimate that the company can contribute about 1.7 billion revenue, making The company's total revenue will reach 5.1 billion yuan in 2018. Considering that the company's products will continue to upgrade in 2018, the company's net profit margin will remain stable at 4.5% without a decline, and the net profit will reach 230 million in 2018, an increase of 44% over the same period of last year.
▌ summary
In the basketball court, who controls the rebound who controls the game; in the boxing field, who controls the left who will control the game.
In the field of display module, who control the panel supply, who control the market.
Hua Xian was originally not a stable panel supply, in the fight for customers and no advantage, the face of the panel out of stock, it seems powerless.
However, with the commissioning of its parent company (Huaxing power) small and medium-size panels, the situation began to be different. Photoelectric began to have a stable supply of panels, with a stable panel supply can win more customers , You can actively expand the company's production capacity, but also can expand new business, such as car screen. Huaxian not only stable LCD panel supply, the future will have a stable supply of OLED panels.
Hua significant changes in the fundamentals of optoelectronics
Huaxian has fundamentally changed the fundamentals of PV, apparently not the previous Huaxin Optoelectronics, with the company's product upgrades, product price increases and the release of the company's new production capacity, the company's revenue and net profit will be substantially increased.
The company's current stock price is relatively stable, valued company's small partners can consider whether to get on the car; Moreover, Huaxing was the acquisition price is 0.9 yuan, the current price is 1.0 yuan, or have some security.