Bayi Space(688181) 浙商证券·2024-12-17 00:23Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [4][7]. Core Insights - The company, Ba Yi Shi Kong, is a leading domestic liquid crystal material manufacturer, poised to benefit from the integration of the display industry with sectors like new energy vehicles and smart homes. It is also expanding into semiconductor and new display fields, focusing on breakthroughs in photoresist resin, OLED materials, and PSPI to create new growth trajectories [2][3]. - The display industry is expected to see significant growth, particularly in the automotive sector, driven by the rapid development of new energy vehicles and smart home technologies. The global display panel industry is projected to rebound in 2024, with an estimated revenue growth of about 10%, reaching approximately $119.7 billion [2][3][55]. Summary by Sections 1. Domestic Liquid Crystal Display Material Leader - Ba Yi Shi Kong has been deeply involved in the liquid crystal material industry for over 20 years, becoming a major supplier for BOE Technology Group. The company has a strong R&D capability and has contributed to national standards for liquid crystal display materials [22][34]. - The company’s revenue and profit faced short-term pressure due to the downturn in the panel industry, with a revenue of 800 million yuan in 2023, down 14.4% year-on-year, and a net profit of 110 million yuan, down 47.6% [40]. 2. Liquid Crystal Material Localization Potential - The global liquid crystal display industry is increasingly concentrating in mainland China, with domestic manufacturers like Ba Yi Shi Kong gaining competitive advantages as the industry shifts [3][66]. - The liquid crystal materials market is dominated by a few key players, and domestic firms are expected to capture a larger market share as the industry evolves [3][66]. 3. Layout of Photoresist and Resin Materials - The company is strategically positioning itself in the photoresist resin market, which is critical for semiconductor manufacturing. The domestic market for semiconductor photoresists is expected to grow significantly, driven by the expansion of wafer fabrication plants [68][72]. - Ba Yi Shi Kong has developed a full range of KrF photoresist resin capabilities and is collaborating with leading domestic photoresist manufacturers, indicating a strong potential for growth in this segment [3][83]. 4. Profit Forecast and Valuation - The company’s projected revenues for 2024, 2025, and 2026 are 781 million yuan, 1.105 billion yuan, and 1.438 billion yuan, respectively, with year-on-year growth rates of -2.36%, 41.52%, and 30.20%. The net profits are expected to be 96 million yuan, 135 million yuan, and 183 million yuan for the same years, with corresponding growth rates of -10.21%, 41.21%, and 34.92% [4][6].