New business such as Linyang Electronics LED is progressing smoothly

Everbright Securities announced that it has recently communicated with Linyang Electronics, and its new business such as LED is progressing smoothly. Everbright Securities expects Linyang Electronics to achieve a growth rate of more than 30% this year. The EPS is expected to be 1.11 yuan.

Everbright Securities said that Linyang Electronics has a late-comer advantage in the two areas of LED and photovoltaic, and is expected to come to the forefront and support the company's continued growth in the future. At present, the company's PE is only 14 times. With the evaluation of the power equipment sector and the LED sector, the company's PE will increase to 20~25 times, and the target price of 6-12 months is expected to reach 22-27 yuan.

Linyang Electronics will rely on the power industry contacts accumulated in the smart meter industry for many years. In the future, it will mainly engage in three areas of business: intelligence, energy conservation and new energy. The intelligent field is based on the company's traditional business, smart meter, electricity information management system, smart home; energy-saving field, mainly engaged in LED applications, energy efficiency management; new energy field, mainly engaged in photovoltaic system integration.

From 2013 to 2015, Linyang Electronics planned LED and PV business revenues to reach 360 million yuan, 920 million yuan and 1.8 billion yuan respectively. At the same time, the company expects the net profit margin of new products to be no less than 17%. In three years, the company is expected to build another Linyang. From 2013 to 2015, the company's planned LED revenues reached 100 million yuan, 300 million yuan and 800 million yuan respectively.

Linyang Electronics' 13Q1 net profit increased by 20% year-on-year, lower than expected, mainly due to the 12-year contract signed to confirm revenue. With the launch of the rural network bidding and the development of the company's overseas market, the revenue growth of the smart meter business in the past 13 years is about 15%. In addition, the contract with a high gross profit margin of about 720 million yuan in 12 years has been transferred to 13 years, and the company's products. The gross profit margin has also increased by about 2 to 3 percentage points. It is expected that the company's net profit will also maintain a relatively high growth rate.

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FAQ

 Q1. What is the MOQ?
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