Chau Ming Technology: three to four times the growth harvest Overweight

Updated: October 19, 2015  Views: 34

[Summary]

This report REVIEW:

Radiant creative screen and small companies pitch products revenue profit of rapid growth, it is expected to drive the company's performance to quadruple in the next three years.

Investment Highlights:

We initiate coverage with an 'overweight' rating, target price of 33 yuan. Radiant creative pitch LED screen and small business companies Qi outbreak in 2015, is expected to drive the company's performance for three years to quadruple Radiant not consider the acquisition of the remaining 40% stake in M & A, We expect 2015-2017 EPS of 0.64 yuan, 0.94 yuan, 1.21 yuan, to consider additional acquisitions and diluted pro forma EPS of 0.75 yuan, 1.12 yuan, 1.46 yuan. References industry comparable company valuation, target price of 33 yuan, the corresponding 2016 35 times PE.

Texture excellent fast-growing small companies + niche market, the outbreak of Radiant performance can be expected. (1 Radiant lock screen high-end rental market creative stage, smiling at both ends of the curve force, product development and brand operation and maintenance to build a moat, 1H15 gross margin and net profit margin of 47% and 28%, (2 stage creative screen by the main raw material costs and lower demand driven double in the next three years to reach 25% CAGR, 2018 $ 2.6 billion market space, (3 Radiant 2014 only 3% market share, with the gradual penetration of the company's products to high-end products and the domestic market, 2015--2017 net profit will reach 100 million, 160 million, 220 million yuan.

LED high-growth small spacing determined, the company is expected to take the lead card bit depth to benefit. (1 technology have obvious advantages, the cost of accelerated decline, accelerated replacement at a small pitch LED large-screen display market, applications continue to expand, and home theater screen large-size TV is expected to gradually break, the potential market space of nearly 30 billion yuan, (2 channels outstanding technical lead for position, 2H15 began to usher in the harvest period, 3Q15 single quarter profit close to 2014 levels throughout the year, follow-up of high growth is expected to continue.


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