Rainbow shares: LCD glass substrate and OLED leader in the future
LCD glass substrate has broad prospects
LCD will continue to be the mainstream of flat panel display in the next decade, and LCD glass substrate will grow with the growth of LCD. Each TFT LCD panel must have two glass substrates of the same size, which are used as TFT array substrate and color filter substrate respectively. The global demand for TFT-LCD glass substrates will maintain an average annual growth rate of about 15% from 2009 to 2012, and the global demand for glass substrates will exceed 2% by 2012. With an area of 100million square meters, the TFT-LCD glass substrate industry has a very broad prospect
break the foreign monopoly and successfully transform to the glass substrate industry with high gross profit rate
liquid crystal glass substrates are monopolized by foreign companies for a long time due to high technical barriers, with gross profit rates as high as 50%~60%. Rainbow shares (19. 21, 0. 66, 3. 56%) with years of technical reserves and accumulation, Xianyang phase I kiln was ignited at the end of 2007, and a leading glass substrate was produced in September 2008. Cold repair was carried out in September, and the furnace was re ignited at the end of December. After February of 10 years, the yield rate continued to rise, from 40% before cold repair in 2009 to about 70%. After two years of efforts, the company is smoothly shifting from CRT to the glass substrate industry with high gross profit margin
the company is at the starting point of the substantial release of production capacity and performance.
from September this year to the middle of next year, the company will successively ignite eight generation 5 lines and four generation 6 lines in Xianyang, Hefei and Zhangjiagang. Now it is at the starting point of the substantial explosion of production capacity and performance. Main parameters at the same time, the company started construction 4. 5 generation AMOLED production line and preparation 8. 5-generation test line to ensure the subsequent growth of the company. The product quality of the company has reached the standard, and the trial and certification of downstream manufacturers are actively carried out, and it has been supplying to a domestic manufacturer. With the growth of downstream demand and cost advantage, the product sales of the company should be guaranteed
the company may face risks such as low yield of subsequent production lines, rapid improvement of tensile elastic modulus due to crystallinity, poor downstream certification and sales, and decline in gross profit margin due to intensified competition
upgraded to "recommended" rating
we expect diluted earnings per share from 2010 to 2012 to be 0 respectively. 06 yuan, 0. 69 yuan and 0. 94 yuan, corresponding to the closing price of 17. The PE of 35 yuan () is 288 respectively. 5x, 25X and 18. 4 times. Considering the downstream demand and the company's technology and cost advantages, the investment rating was raised to "recommended"
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