With the double-shot/three-shot entering the accelerated penetration period, it is expected that the penetration rate will reach 30% in 2018, and the market size will reach 100 billion in the future. The company seizes the opportunity to give full play to the advantages of innovative platforms and rapidly expand production capacity to become a domestic camera model. Leading supplier of the group. The company acquired the Flip-Chip key process and related patent licenses other than COB through the acquisition of Sony South China Factory. On the other hand, it successfully cut into the A customer supply chain and obtained the qualification of A customer supplier. 3D sensor, The company has entered into a strategic partnership with Mantis Vision and is expected to mass produce 3D products in advance and open the blue ocean market.
Flexible OLED and fingerprint recognition diversify to help old products
The company is actively deploying flexible OLED touch technology, and it is expected to benefit from the improvement of the permeability of flexible OLED screens. Flexible OLED screens use vapor deposition to attach the film. If the touch panel is used in the pixel layer of LCD, the product yield will be greatly reduced. Can only use ON-CELL and plug-in. Accelerated penetration of the full screen, is expected to reach 50% penetration in 2018, the application of the full screen led to the development of the frontal fingerprint identification module in multiple directions, enhance the module's ASP.
Lace up the automotive electronics to create the second pole of growth
The automotive electronics industry chain is the most promising sub-sector in automobile manufacturing. By the end of 2017, the global automotive electronics market reached 207 billion U.S. dollars, and the global market space has broken trillion. The company's main automotive electronics in the layout of automotive electronics, The company has become a supplier to more than 20 automakers in the world for product development and manufacturing in areas such as smart driving, smart central control and car networking.
Earnings forecasts and investment advice
We forecast that the company's operating income will reach 45.8 billion yuan, 53.6 billion yuan, 61.1 billion yuan from 2018 to 2020, and the net profit will reach 2.018 billion yuan, 2.384 billion yuan and 2.573 billion yuan, corresponding to 0.74 yuan, 0.88 yuan, and 1.01 yuan per share of EPS. , The corresponding valuation is 23.39X, 19.80X, 17.15X, optimistic about the layout of the company in the optical field, automotive electronics and A customer, giving the company a recommended rating.
risk warning
Dual shot prices fell; touch rebounded lower than expected, and A's new product expansion was lower than expected.