The display economy is booming! Visionox promotes tens of billions of projects, and multi-company production capacity releases and thickens performance

Benefiting from the improvement of terminal application demand, the market size of the OLED industry continues to expand, among which the new display technology represented by AMOLED is welcomed by the market with its advantages of flexibility and high image quality. Recently, Visionox's AMOLED project with a total investment of 11 billion yuan is intended to land in Hefei to further improve the company's industrial chain layout. Carding found that many panel manufacturers such as BOE have also invested heavily in the construction of OLED production lines, and some companies have released production capacity and have achieved performance growth.

Source: Photo Network

Visionox's total investment of 11 billion yuan AMOLED project, to be landed in Hefei

On April 29, Visionox Technology Co., Ltd. (stock abbreviation: Visionox; stock code: 002387. SZ) disclosed that the company and the Hefei Municipal People's Government intend to sign a project investment framework agreement, the two sides cooperate to invest in visionox 6th generation flexible active matrix organic luminescence (AMOLED) module production line project in Hefei Xinzhan High-tech Industrial Development Zone, with a total investment of 11 billion yuan. The project has an annual output of 25.99 million pieces of 6-12-inch flexible AMOLED module products (calculated in normal production years). It is reported that the two sides intend to set up a joint venture project company and jointly invest 5.5 billion yuan in the project company, of which Visionox will invest 2.5 billion yuan.

According to the data, Visionox focuses on the new display business, research and development, production and sales of OLED small-size, medium-size display devices, as well as MicroLED products, product applications covering smart phones, smart wearables, tablets, notebook computers, car displays, oversized sizes and other aspects.

According to the data, in 2021, Visionox achieved operating income of 4.544 billion yuan, an increase of 32.32% over the previous year; of which the revenue of AMOLED products was 4.389 billion yuan, an increase of 103.62% over the previous year. During the reporting period, the company's AMOLED product structure continued to optimize, supplied high-end products such as folding screens, and maintained supply relations with many brand customers such as Honor, Xiaomi, OPPO, Vivo, Huami, etc., and the annual shipment volume of AMOLED smart phone panels ranked fourth in the world.

According to Visionox, Qunzhi Consulting data shows that in 2021, the global AMOLED smartphone panel shipments of 640 million pieces, the Chinese mainland panel manufacturers' AMOLED panel shipments of about 140 million pieces, an increase of about 60% year-on-year, the company's shipments of more than 30 million pieces, an increase of 48% year-on-year.

In addition, due to the increase in sales of OLED products, the company achieved operating income of 1.490 billion yuan in the first quarter of 2022, an increase of 22.93% year-on-year. In terms of production capacity, the 5.5th generation AMOLED production line in Kunshan, which is controlled by the company, continues to maintain a high utilization rate, continuously optimizes and adjusts the product structure, and further improves the gross profit margin. The capacity of Gu'an's 6th-generation flexible AMOLED production line has been further improved, and the operation level has continued to improve; the Hefei 6th-generation flexible AMOLED production line and guangzhou Zengcheng flexible module line in which Visionox is a shareholder have continued to deliver mass production to brand customers, and the production capacity has steadily climbed.

On April 30, Visionox also disclosed that its holding subsidiary, Yungu (Gu'an) Technology Co., Ltd., received a special support incentive fund of RMB 20 million from the Management Committee of Hebei Nangu'an High-tech Industrial Development Zone on the company's sixth-generation active matrix organic luminescent display device (AMOLED) panel production line project. It is reported that the incentive fund is one of the 700 million yuan of special support incentive funds obtained by the company in June 2020 for the above projects.

Show the rapid development of the industry, the layout of many companies, the release of production capacity and thickening business

"OLED", that is, organic light-emitting diode, is the third generation of display technology after CRT and LCD technology, with light and thin, high contrast, flexible and bendable performance advantages, mainly used in smart phones, smart wearable devices, laptops, tablets, TVs, car displays and other fields. According to the different driving methods, OLED can be divided into active matrix type (AMOLED) and passive matrix type (PMOLED), of which AMOLED is the mainstream technology of OLED, occupying the vast majority of the current OLED market share.

In the A-share market, many companies grasp the development opportunity of flexible display technology to continuously update and upgrade, and actively layout in the growth period of the industry. And with the release of production capacity, the company's performance has achieved growth.

Wright Optoelectronics (688150. SH) 2021 annual report disclosed that the OLED industry market size continues to expand, in addition to Visionox, BOE, Tianma Group, Hehui Optoelectronics and other panel manufacturers have also invested heavily in the construction of OLED production lines, the current total investment in domestic OLED panels has exceeded one trillion yuan, new and proposed OLED production lines have reached more than 20, and the focus of the global OLED panel industry has gradually begun to shift to China.

At the same time, Lite Optoelectronics disclosed that with the boe Chongqing sixth-generation flexible AMOLED production line lit up and put into production, the company's new generation of RedPrime materials successfully completed the mass production import and batch supply, achieving an all-round exclusive supply position in BOE Red Prime materials. The company's testing and certification in Tianma has been carried out smoothly and has now been supplied in batches.

BOE A (000725.SZ) will achieve 10 million shipments of flexible AMOLED products in a single month in 2021, achieving milestone development. The company's 6th generation AMOLED production line operation quality in Chengdu and Mianyang has steadily improved, and the 6th generation AMOLED production line in Chongqing has successfully achieved mass production delivery. Affected by the release of production line solidification capacity, BOE A's sales volume, production volume and inventory volume of AMOLED in 2021 increased by more than 30% compared with the same period last year.

Shenzhen Tianma A (000050.SZ) disclosed on April 13 that the company intends to invest in the establishment of a joint venture project company in Xiamen through its wholly-owned subsidiary Xiamen Tianma Microelectronics Co., Ltd. (hereinafter referred to as Xiamen Tianma) and its partner Xiamen International Trade Holding Group Co., Ltd., etc., to build an 8.6th-generation new display panel production line project with a monthly processing of 2250mm × 2600mm glass substrates, with a total investment of 33 billion yuan. The registered capital of the joint venture project company is 19.8 billion yuan, of which Xiamen Tianma invests 2.97 billion yuan and holds 15% of the equity.

According to the announcement, Shenzhen Tianma has the 5.5th generation AMOLED production line, the 6th generation AMOLED production line and TN, STN production line. In the context of the rapid growth of small and medium-sized display market demand, this project is another major strategic layout of the company in the field of new display, which will help the company optimize and improve the configuration of production lines and business layout, and accelerate the realization of the strategic goals of leading enterprises in the global display field.

Hehui Optoelectronics (688538. SH) achieved operating income of RMB4.02 billion in 2021, an increase of 60.69% over the same period of the previous year. During the reporting period, the company's 6th generation AMOLED production line capacity was released, and the total shipment volume increased. Among them, the company's focus on the development of tablet / notebook computer AMOLED semiconductor display panel product shipments increased significantly.

In addition, from January to February 2022, the capacity of the 6th generation AMOLED production line of Hehui Optoelectronics was released, and the product sales revenue continued to grow, and the company is expected to achieve a total operating income of about 600 million yuan, an increase of about 35% year-on-year.

Qingyi Optoelectronics (688138. SH) 2021 annual report disclosed that in terms of masking plate technology for flat panel displays, the company has achieved mass production of 8.5 generations of high-precision TFT mask plates and 6 generations of medium-precision AMOLED/LTPS mask plates. In 2022, the Hefei plant will fully expand the production capacity and technical capabilities of the 8.6 generation high-precision TFT mask plate and the 6th generation high-precision AMOLED/LTPS mask plate products after the start of operation.

Shen Keda (688328. SH) 2021 annual report disclosed that the flat panel display industry is an important part of the electronic information industry, has become an important support for national economic growth, with the development of smart phones, tablet computers, smart TVs, wearable devices, notebook computers and other display terminals, the flat panel display industry has become one of the most rapidly developing industries in the past decade. Shenkeda said that the company will focus on AMOLED flexible lamination, large-size high-definition display lamination, high-precision 3D curved surface lamination, vehicle display device assembly and other technical topics to conduct in-depth research, and quickly meet the needs of new technology development for precision automation equipment.