Jilin OLED(688378) SINOLINK SECURITIES·2024-09-10 10:38Investment Rating - The report assigns a "Buy" rating to the company with a target price of 24.94 CNY per share, based on a 30x valuation for 2024 [4]. Core Views - The company is a leading manufacturer of OLED organic materials and equipment, experiencing rapid growth in performance. The OLED industry is expected to see upward trends, with significant potential in organic light-emitting materials [2][3]. - The company has established strong partnerships with major domestic OLED panel manufacturers and is one of the few that can independently produce organic light-emitting materials [2]. - The company's organic light-emitting materials revenue reached 318 million CNY in 2023, a year-on-year increase of 49.42% [2]. - The company is also advancing its evaporation source equipment business, which is expected to benefit from the construction of high-generation AMOLED production lines [3]. Summary by Sections Company Overview - The company has been engaged in the research and development of organic light-emitting materials since 2005 and began developing evaporation source equipment in 2012, forming a complete integrated innovation mechanism [17]. Financial Performance - In the first half of 2024, the company achieved revenue of 342 million CNY, a year-on-year increase of 4.39%, while net profit attributable to shareholders was 92 million CNY, a decrease of 5.81% [21]. - The company forecasts net profits of 173 million CNY, 261 million CNY, and 336 million CNY for 2024, 2025, and 2026, respectively, representing year-on-year growth rates of 41.51%, 50.60%, and 28.81% [4][6]. Market Position and Growth Potential - The company is positioned as a domestic leader in OLED materials, with a significant market share in the organic light-emitting materials segment, which is expected to continue growing due to increasing demand and domestic production capabilities [2][26]. - The report highlights the increasing penetration of AMOLED technology in various applications, including smartphones, laptops, and automotive displays, indicating a broad market potential [31][38]. Product Development and Innovation - The company is actively investing in R&D, with a focus on developing new materials and equipment for OLED applications, including high-generation evaporation sources and perovskite solar cell technologies [23][24]. - The company has seen a significant increase in its R&D output, with 93 new invention patents granted in 2023, bringing the total to 325 [23].