The 212nd original article from The Core Myna.
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As we all know, as an important carrier of information display in the era of digital economy, the screen is an important window for human-computer interaction. The new display technology represented by AMOLED display is popular in the market through its advantages of flexibility and high image quality, and is widely used in mobile phones, smart wearables, in-vehicle and professional displays.
| In the off-season of consumer electronics, the shipment growth of major AMOLED screen manufacturers is still above 50%.
In recent years, in view of the advantages of healthy eye protection, energy saving and power saving, and more feasible in terms of functional integration, environmental adaptation and morphological plasticity, AMOLED has gradually become one of the mainstream technologies in small and medium-sized semiconductor display panels. With the accelerated penetration of AMOLED screens in consumer electronics terminals, even in the current consumer electronics off-season, the AMOLED industry still maintains a contrarian growth.
In terms of shipments, the shipment growth of major AMOLED screen manufacturers in 2021 is generally more than 50%. Specifically, in 2021, BOE flexible AMOLED product shipments of nearly 60 million pieces, and December single-month shipments for the first time exceeded 10 million levels, reaching a new milestone in business development; in the first quarter of 2022, the company's flexible AMOLED product shipments increased by nearly 50% year-on-year, still continuing the trend of rapid growth. According to the latest statistics, BOE's global market share in 2021 will be about 17%, ranking first in China and second in the world.
In addition, Visionox shipped more than 30 million AMOLED units in 2021, an increase of 48% year-on-year, especially in the fourth quarter, showing a rapid growth trend, ranking fourth in the world and second in China throughout the year. Among them, Kunshan's 5.5th generation AMOLED panel production line shipments increased by about 56% over the same period last year, and Gu'an's 6th generation AMOLED panel production line shipments increased by about 140% over the same period last year; Although The shipments of AMOLED in 2021 were not as good as BOE and Visionox, the shipments of AMOLED in smartphones and wearable products also reached 25 million pieces, far exceeding the expected 20 million pieces. Among them, the total shipments of flexible mobile phone business in Wuhan AMOLED production line doubled year-on-year, and achieved full coverage of major domestic brand customers.
Source: Core Myna is based on public information
The rapid growth of shipments has led to a significant improvement in the performance of related companies. Specifically, as a leading domestic panel company, BOE achieved the best performance in history in 2021, and its revenue and net profit have increased significantly. Among them, the company achieved revenue of about 219.310 billion yuan in 2021, an increase of about 61.79% year-on-year. Net profit of about 25.831 billion yuan, a substantial increase of about 412.96% year-on-year; Visionox achieved operating income of 4.544 billion yuan in 2021, an increase of 32.32% year-on-year, of which AMOLED product revenue was 4.389 billion yuan, an increase of 103.62%; Hehui Optoelectronics achieved revenue of 4.021 billion yuan in 2021, an increase of 60.69% year-on-year. Among them, the company achieved AMOLED semiconductor display panel product revenue of 3.987 billion yuan, an increase of 62.36% year-on-year.
It is worth emphasizing that the rapid growth of AMOLED screen shipments has also driven the shortage of AMOLED panel driver chips, and Zhongying Electronics is one of the biggest beneficiaries. According to the 2021 annual report released by Zhongying Electronics, the company achieved revenue of 1.494 billion yuan, an increase of 47.58% year-on-year; net profit was 371 million yuan, an increase of 77.00% year-on-year, both revenue and profit have achieved rapid growth year-on-year.
Zhongying Electronics said that the company's AMOLED display driver chip target market, mainly for the domestic AMOLED screen factory, with the domestic AMOLED screen industry production technology is becoming more and more mature, the domestic AMOLED display driver chip demand is expected to continue to grow in the next few years.
| South Korea's Samsung Electronics and LGD market share together exceeded 70%, and Chinese manufacturers are accelerating to catch up
According to Omdia data, the global market size of AMOLED semiconductor display panels in 2020 was $30.468 billion, an increase of 22.77% year-on-year. It is expected to maintain a compound annual growth rate of 9.01% over the next five years, and its size will reach $46.904 billion by 2025.
In terms of competition pattern, the global AMOLED semiconductor display panel production field is mainly dominated by Korean manufacturers and Chinese mainland manufacturers, of which Korean panel manufacturers have a high production capacity share and more advanced technology, and mainland panel manufacturers are developing fast and showing a trend of accelerating catch-up.
As the industry knows, South Korea is the first country to realize the industrialization of AMOLED semiconductor display panels, Samsung Electronics and LGD are the main promoters and market participants in the industrialization and marketization of global AMOLED, and the total production capacity of the two AMOLED panels accounts for more than 70% of the global production capacity, and respectively occupies the technology and capacity advantages in the application fields of small and medium-sized AMOLED and large-size AMOLED.
From the domestic situation, Chinese mainland has become the world's second largest manufacturing base after South Korea in the field of small and medium-sized AMOLED semiconductor display panels. Although local AMOLED panel manufacturers such as BOE, Hehui Optoelectronics, Visionox, and Shentianma already have the strength to mass-produce AMOLED panels, the technology is larger than that of South Korea's Samsung and LGD, and the production capacity is small.
In the AMOLED semiconductor display panel industry, production has a more obvious economy of scale effect, and the scale of production capacity is an important factor affecting competitive strength. At present, Samsung Electronics currently has 5 production lines, with a mass production capacity of 436K/month, ranking first in the world; LGD has 3 production lines with a mass production capacity of 84K/month; BOE has 3 production lines with a mass production capacity of 100K/month, ranking first among Chinese AMOLED manufacturers. In the future, after the 6-generation flexible AMOLED production line in Chongqing and Fuzhou is put into operation, it will further consolidate BOE's dominant position in the field of flexible AMOLED; Hehui Optoelectronics currently has 2 production lines and a mass production capacity of 30K/month.
Source: Hehui Optoelectronics Prospectus
In addition, Shentianma's 6-generation rigid and flexible AMOLED production line in Wuhan has achieved mass production, and the current production capacity is 23K/month. It is worth mentioning that the 6th-generation flexible AMOLED production line with a total investment of 48 billion yuan in Xiamen is expected to be put into operation in 2022, which will bring 48K/month of new production capacity to the company, which will help Shenzhen Tianma flexible AMOLED production capacity scale rank among the top three in the world.
In the future, as the production capacity of AMOLED of BOE, Shentianma, Huaxing Optoelectronics, Hehui Optoelectronics and other manufacturers enters a centralized release period, it is expected that the global proportion of domestic AMOLED production capacity is expected to increase from 28.8% in 2020 to 45.5% in 2023. With the acceleration of AMOLED screen penetration, the development of folding screen mobile phones and the further expansion of the demand for AMOLED panels due to the increase in display area, Chinese AMOLED panel manufacturers are expected to usher in a golden period of development.
| The market incremental opportunity brought about by the accelerated penetration of AMOLED display terminal applications
From the perspective of downstream applications, the current AMOLED panel is mainly used in smart phones, accounting for more than 80%. According to CINNO Research, the global market AMOLED smartphone panels shipped about 668 million pieces in 2021, an increase of 36.3% year-on-year. Among them, the share of AMOLED smartphone panel shipments in South Korea is nearly 80%, which is still the main force; while the shipment share of domestic manufacturers has steadily climbed to 20.2%, an increase of 3.7 percentage points year-on-year.
Source: Hehui Optoelectronics Prospectus
According to Jibang Consulting research, benefiting from apple, Samsung and other Chinese brands to expand the introduction of AMOLED models, the market penetration rate of mobile phone panel AMOLED in 2021 is 42%, and the penetration rate is expected to climb to 46% in 2022 under the continuous investment of various panel factories in the expansion of AMOLED production lines. Jibang Consulting further said that the supply of AMOLED display driver chips continues to be tight and the willingness of mobile phone brands to expand the use of AMOLED panels is still the key to affecting the market penetration of AMOLED.
Source: Core Myna is based on public information
At present, AMOLED display is still in the technology-led period, folding, high refresh rate, off-screen camera, narrow bezel, low power consumption, ultra-thin and other display technologies are more popular in the market. As can be seen from the above figure, in the high-end models of mainstream mobile phone brand manufacturers such as Samsung, Huawei, OPPO, VIVO, OnePlus, Meizu, Nubia, etc., most of them use AMOLED screens, indicating that the penetration rate of AMOLED screens in high-end models has been very high, almost becoming the standard of high-end models.
In the future, with the maturity of the process and the continuous improvement of yield, the cost of AMOLED display panels will further decline, and AOLED screens are expected to penetrate from high-end models to low-end models in mobile phones. In addition, the application direction of AMOLED products will also expand from smart phones and smart wearables to tablet computers, notebook computers, and vehicles. With the acceleration of end-use penetration, relevant manufacturers are expected to further benefit from incremental market opportunities.
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