Chau Ming Technology: Creative screens are small and spaced, and three years of growth have quadrupled

Redio Creative Screen and the company's small-pitch LED business broke out in 2015, which is expected to drive the company's performance to quadruple in three years.

Outstanding quality small company + fast-growing niche market, Redio's performance can break out.

(1) Redio locks the stage creative screen high-end rental market, exerts the two sides of the smile curve, product development and brand operation and maintenance to build the moat, 1H15 gross profit margin and net profit margin are 47% and 28% respectively;

(2) The stage creative screen is driven by the decline of the cost of major raw materials and the strong downstream demand. The CAGR will reach 25% in the next three years and the market space in the next 1818 will be 2.6 billion US dollars;

(3) Redio's market share in 2014 is only 3%. As the company's products gradually penetrate into the mid-to-high-end products and the domestic market, the net profit in 2015-2017 will reach 100 million, 160 million and 220 million yuan.

The high growth of small pitch LEDs is determined, and the company's first card position is expected to benefit deeply.

(1) The technical advantages are obvious, the cost is accelerated, and the small-pitch LED is accelerated in the large-screen splicing market; the application field is continuously widened, and the cinema screen and household large-size TV are expected to gradually break through, with a potential market space of nearly 30 billion yuan;

(2) The company's technical channel is the first to take advantage of the card position. 2H15 is beginning to usher in the harvest period. The 3Q15 single-season profit is close to the 2014 full-year level, and the subsequent high growth is expected to continue.

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