【行业研究报告】康冠科技-Initiation:Global intelligent display leader with advantages in customized R&D

KTCTechnologyisagloballeadingintelligentdisplaymanufacturer,and
itscorebusinessesincludeinteractiveflatpaneldisplays(IFPDs),
professionaldisplaydevices,andsmartTVs.Withindependentresearch
anddevelopment(R&D)combinedwithflexibleproduction,theCompany
boastspromptresponsestocustomizedordersanddeepengagement
withbignamesintheintelligentdisplayindustry,alsoadopting
differentiatedmarketstrategiestoanchorlocalleadersinsmall-and
medium-sizedregions.TheCompanyshowshighlyvisibleperformance
growth.ViaPEandPSvaluationmethods,weassign19x2022EPEand
1.89x2022EPStoderiveatargetpriceofRmb51andinitiatecoveragewith
a“BUY”rating.
▍Companyoverview:
KTCTechnologyisagloballeadingintelligentdisplaymanufacturer,andits
KTCTechnologyisagloballeadingintelligentdisplaymanufacturer,andits
corebusinesseshavehighvisibilityofgrowthwiththeincreaseofglobal
penetration.Asoneoftheearliestmanufacturersdedicatedtoflatpanel
displayterminalproducts,theshipmentsofIFPDsandsmartTVshaveranked
amongthetopintheworldformanyyears.Withtheincreasedpopularityof
smartofficesandsmartTVs,thecorebusinessofIFPDs/smartTVs
contributedrevenueofRmb4.494bn/5.641bnin2021(+70%/+56%YoY),
respectively.Thedesignandprocessingbusiness,benefitingfromthegrowth
ofthebusinessscaleofmajorcustomers,achievedannualrevenueof
Rmb1.296bn(+51%YoY).In2021,theCompanyrecordedrevenue/netprofit
ofRmb11.889bn/0.923bn(+60.4%/+90.4%YoY),respectively.The
comprehensivegrossprofitmargin(GPM)remainedstableandthecostwas
wellcontrolled.
▍Industryoverview:
1)Intelligentinteractiveproducts:Inadditiontothedual-driverofbusiness
andeducationsegments,thegrowthofthemedicalmarkethasalsostartedto
accelerate.Inrecentyears,theglobalintelligentinteractivedisplaymarkethas
undergonesignificantgrowth,theshipmentofcommercialinteractivetablets
hasincreasedsignificantly,andthereisastrongdemandforlargeenterprises
andlargescreenapplicationscenarios;Thereplacementdemandofthe
educationmarketisstable,andthefavorablepoliciesstimulatethemarket
increment;Theglobaldemandformedicaldisplayshasgrownsteadily,and
China’smedicalimagingmarkethasbeguntoacceleratesignificantly.
2)SmartTVs:Theglobalpenetrationratecontinuestoincreaseinrecent
years,andthetrendoflargescreenisobvious.TheglobalsmartTV
householdpenetrationrateincreasedto32%in2019from12%in2013.
Emergingcountriesandregionsareincrementalmarkets,andmaturemarkets
representedbyChinahaveahighdemandforimprovementofbig-screen
TVs.
▍Corestrengths:TheadvantagesofR&Dintegrationareprominent,and
customizedservicesanchorgloballeadingbrandsandlocalleadersinthe