TCL Group (000100) quarterly report review 2019: LCD panel industry bottoms out and company profitability continues to improve
Performance summary: The company achieved operating income of USD 29.6 billion in the first quarter of 2019, a year-on-year increase of 15%.
5%; net profit attributable to mother 7.
8 ppm, a six-year increase of 6.
Excluding the assets subject to restructuring, the company’s pro forma net profit for the first quarter was 9.
3 ppm, an increase of 21 per year.
6%; net profit attributable to mother is 7.
700 million, five years growth.
The LCD panel industry bottomed out, and Huaxing Optoelectronics’ small size expansion performance was dazzling.
1Q1 Huaxing Optoelectronics achieved an expansion of 5.56 million square meters, an increase of 17 per year.
1%; realized operating income of 72.
50,000 yuan, an increase of 12 in ten years.
1%; net profit achieved 6.
800 million, an increase of 35.
Although the price of major products of Huaxing Optoelectronics Q1 has decreased compared to the same period of last year due to the downturn of the 北京桑拿洗浴 industry cycle, the industry ‘s overall bottom-up trend has now emerged, which has resulted in a significant improvement in the company’s performance.
19Q1 two 8.
The fifth-generation lines t1 and t2 continue to consolidate the industrial division of the large-size field. The 32-inch product ranks second in the world, and the 55-inch UD product is ranked first in the world. The sixth-generation LTPS-LCD production line t3 is full and sold.The volume is 27.28 million pieces, ranking third in the world and growing by 5 every year.
9 times, the area is expected to grow by 5 per year.
3 times, sales income grows nearly 4 times each year to achieve better operating profits.
Large-size and flexible OLEDs are progressing smoothly, helping the company’s long-term development.
Except for the t1-t3 production line, which continues to maintain full production and sales, the company’s 杭州桑拿 production lines in the 11th generation of ultra-large LCD and flexible OLED fields are progressing smoothly.
The 11th generation t6 production line is positioned in 65-inch and 75-inch ultra-large new display panels. The current climbing and yield progress are leading, and it is expected to be fully produced by the end of 2019. The 11th generation t7 production line is positioned at 65-inch and 70-inch.(21: 9), 75-inch 8K ultra-high-definition display and AMOLED flexible screen products are currently under construction according to plan; the sixth-generation LTPS-AMOLED flexible production line t4 is in the ramp-up stage of production capacity and yield, and sample submission and verification by strategic customersWork is progressing in an orderly manner.
The restructuring target appeared in the second quarter, which will significantly improve operating indicators.
From the second quarter of 2019, the Group’s smart terminals and supporting businesses will be replaced by listed companies and will no longer replace the scope of TCL Group’s consolidated statements.
In the first quarter of 2019, the Group continued to deepen reforms, continue to reduce costs and increase efficiency, and net profit replaced 3.
4%, the cost rate drops by 1 every year.
With 9 averages, ROE increases by 0 per year.
For two assets, the asset-liability ratio dropped to 68.
1%; and after excluding the assets of the specimen, the net profit rate of the listed company will reach 7.
8%, the asset-liability ratio will be further reduced by 59.
1% will significantly optimize the capital structure and significantly improve profitability.
Profit forecast and rating.
After the reorganization, it is estimated that the pro forma operating income and net profit attributable to mothers of listed companies in 2019 will be 66.5 billion and 4 billion, respectively. With reference to the valuation of panel companies in the same industry, maintain the “overweight” rating.
Risk reminders: the risk of panel price fluctuations; the risk of exchange rate changes; the risk of major asset restructurings not meeting expectations or termination