Global LED display head brand
Benefiting from the strong pull of overseas markets, the operating performance of global LED display head brand Absen (13.800, -0.18, -1.29%) (300389.SZ) has reached a new level in 2023.
On April 15, 2024, Absen released its annual performance report stating that in 2023 it would achieve revenue of 4.006 billion yuan, a year-on-year increase of 43.29%; it would achieve net profit of 316 million yuan, a year-on-year increase of 55.53%.
In addition, the company will achieve tax-included bill signing of 5.297 billion yuan in 2023, a year-on-year increase of 51.01% from 2022.
According to relevant statistics, the compound growth rate of Absen’s total operating income in the past three years has reached 34.62%, ranking first among the 11 companies in the LED industry that have disclosed 2023 data.
A reporter from the Changjiang Business Daily noticed that as one of the overseas pioneers in the LED display industry, Absen started its overseas market journey in 2005. After years of hard work, its brand awareness and influence have continued to rise. In 2023, Absen’s overseas market operating revenue will increase by approximately 46% year-on-year to approximately 2.6 billion yuan, accounting for 64.9% of revenue.
At the same time, Absen is “attacking both internally and externally”. While its overseas business is growing, its domestic business is also developing rapidly. In 2023, the company will achieve revenue of 1.43 billion yuan in the domestic market, a year-on-year increase of 38.14%, higher than the growth rate of its peers.
The company’s previously disclosed development strategic planning outline stated that it will strive to achieve 8 billion yuan in contract signings in 2024 and 10 billion yuan in 2025.
The number of orders signed in 2023 will increase by more than 50%
Recently, Absen disclosed its annual report showing that in 2023, the company will achieve operating income of 4.006 billion yuan, a year-on-year increase of 43.29%; net profit of 316 million yuan, a year-on-year increase of 55.53%; basic earnings per share is 0.8723 yuan, and the company plans to distribute cash for every 10 shares Bonus 3 yuan (tax included).
Regarding the performance growth, Absen said that it was mainly due to the company’s improvement of its global sales network, and the continued high growth in order signing and revenue. The financial report shows that the company’s tax-included contract signings in 2023 will be approximately 5.3 billion yuan, a year-on-year increase of 51.01%.
In terms of products, Absen’s main businesses are LED displays, LED display hotel operation services, others, and energy storage equipment. In 2023, they will achieve revenue of 3.87 billion yuan, 98.2432 million yuan, 34.5137 million yuan, and 3.7947 million yuan respectively. The revenue proportions were 95.22%, 3.45%, 1.31%, and 0.02% respectively, and the gross profit margins were 29.15%, 41.54%, 45.03%, and 7.23% respectively.
A reporter from the Changjiang Business Daily noted that under the wave of digital transformation of energy and power, Absen believes that the new energy storage business is in line with the national “carbon peak” and “carbon neutrality” strategies and is a trillion-level track.
In 2023, Absen got involved in the new energy business and developed energy storage equipment products. It achieved revenue of approximately 3.79 million yuan that year. Its smart factory production line is currently being laid out as planned, and some projects have been successfully delivered commercially.
It is worth mentioning that Absen also recently disclosed its first-quarter performance forecast. In an environment where the world’s economic growth momentum is generally insufficient, Absen’s operating income in the first quarter of this year is expected to reach 864 million yuan, an increase of 21.86% from the same period last year; in the first quarter, the company has signed orders of 1.203 billion yuan, an increase from the same period last year. 26.90%.
A reporter from the Changjiang Business Daily reviewed Absen’s financial reports over the years and found that in the first quarter of this year, the company’s revenue hit a new high since it entered the capital market in 2014. However, the company’s net profit in the first quarter of this year failed to achieve a simultaneous increase, and is expected to decline slightly by 0.12%-11.50%.
Overseas revenue accounted for 64.9%
Public information shows that Absen was founded in 2001 and successfully entered the capital market in 2014. It has now become the world’s leading provider of LED display applications and services.
In recent years, as LED screens have begun to be widely used in international sports venues, related demand has increased day by day, which has also provided Absen with new market opportunities.
Absen started its overseas market journey in 2005 and has now formed unique market competitiveness. Up to now, Absen has 18 domestic and overseas subsidiaries, and has formed thousands of channel cooperation networks in more than 140 countries and regions. The financial report shows that Absen’s overseas market operating revenue will continue to grow by approximately 46% year-on-year in 2023, based on a high growth rate of 76% in 2022, reaching approximately 2.6 billion yuan, with overseas market revenue accounting for 64.9%.
It is worth noting that as Absen began to “attack both internally and externally”, while the company’s overseas business continued to grow, its domestic business was also developing rapidly.
Last year, the company achieved revenue in the domestic market of 1.43 billion yuan, a year-on-year increase of 38.14%, higher than the growth rate of its peers. According to statistics from a third-party consulting agency, in the global LED all-in-one machine market, the Absen brand ranks first in shipments.
The continuous growth of market share is inseparable from Absen’s continuous improvement of products. In recent years, Absen has continued to increase investment in research and development of core technologies. From 2020 to 2022, Absen’s R&D investment was 84.2 million yuan, 109 million yuan and 125 million yuan respectively. In 2023, the company’s R&D expenses reached 167 million yuan, accounting for 4.17% of revenue. The company’s cumulative R&D expenses in the past four years have reached 485 million yuan.
Absen is full of confidence in the company’s future development. The company’s previously disclosed development strategic planning outline stated that the company will strive to achieve 8 billion yuan in contract signings in 2024 and 10 billion yuan in contract signings in 2025.