Ping An Electronics: Folding mobile phones enter the market, and the inflection point of parts upgrade is approaching

Zhitong Finance APP learned that Ping An Securities electronic information industry research report said that with the sale of folding machine products by Samsung, Huawei, OPPO, etc., it is expected that more brands will release related products, and consumer attention will also increase. According to Omdia's data forecast, the shipment of OLED display of folding screen smartphones will be 800,000 units in 2019, and the shipment volume is expected to reach 40 million units in 2024. From the perspective of supply chain: folding mobile phone panels, touch, cover materials, adhesives, substrate materials, polarizing films, hinges, OLED materials, etc. are different from traditional mobile phones. Among them, the panel, structural parts (hinge), cover, system and other upgrades are larger, it is recommended to pay attention to BOE A (000725.SZ), Changxin Technology (300088.SZ), Kaisheng Technology (600552.SH), Steak (300806.SZ), Sanli Spectrum (002876.SZ), Changying Precision (300115.SZ) and so on.

The main views of Ping An Securities are as follows:

Event: OPPO released a new AR glasses equipped with a MicroLED display and a new folding flagship OPPOFindN

OPPO released a new ar glasses, equipped with MicroLED display: On December 14, 2021, OPPO officially launched a new generation of smart glasses AirGlass at INNODAY2021, equipped with OPPO's self-developed microlight machine and cutting-edge MicroLED, as well as customized diffracted light waveguide technology, supporting touch, voice, gesture and head control four interactive methods.

OPPO officially released the new folding flagship OPPOFindN: On December 15, 2021, OPPO officially released the new folding flagship OPPOFindN.

Waiting for technological upgrades, focusing on panels, structural parts (hinges), covers and other fields

With the gradual improvement of folding screen mobile phones, it is expected that more brands will release related products, and consumer attention will also increase. According to Omdia's data forecast, the shipment of OLED display of folding screen smartphones will be 800,000 units in 2019, and the shipment volume is expected to reach 40 million units in 2024.

There is no second-tier brand/white label market for foldable displays now. All brands that launch foldable devices are leading brands (such as Samsung, LG, Huawei, OPPO, Xiaomi, etc.), mainly development costs and higher requirements for the integration of the supply chain, especially as an avant-garde device, each brand has its own design and shape, which means that display manufacturers can only develop once for one brand, and models can only be used once. This increases the risk of development ROI or design ROI.

From the perspective of supply chain: folding mobile phone panels, touch, cover materials, adhesives, substrate materials, polarizing film, hinges, OLED materials, etc. are different from traditional mobile phones, it is recommended to pay attention to upgrading larger panels, structural parts (hinges), covers, systems, etc.

This article is compiled from the Ping An Securities Electronic Information Industry Research Report, Zhitong Finance Editor: Ding Ting.