The panel display industry is picking up, many companies are expected to increase in the first quarter, and the production capacity of leading enterprises is released

At present, semiconductor display touches consumer terminals such as smart screens, industrial sensors and automotive electronics, and superimposed display technology continues to innovate and break through, and the industry has ushered in a blowout development. In the field of A-shares, a number of panel companies, including BOE A, are expected to rise sharply in the first quarter of this year. In addition, the production capacity of many leading enterprises is gradually being released.

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The industry is picking up, and BOE A's net profit attributable to shares in the first quarter is expected to rise by more than 200%

On April 12, BOE Technology Group Co., Ltd. (stock abbreviation: BOE A; stock code: 000725.SZ) disclosed its forecast for the first quarter of 2024, the company is expected to achieve a net profit attributable to shareholders of listed companies of 800 million yuan to 1 billion yuan, 247 million yuan in the same period last year, a year-on-year increase of 223% to 304%, and a net profit after deducting non-recurring gains and losses of 460 million yuan to 660 million yuan, compared with -1.668 billion yuan in the same period last year.

The company's performance in the first quarter is mainly affected by the recovery of the industry. During the reporting period, the semiconductor display industry benefited from a good supply pattern and the early release of downstream demand, and the industry's prosperity rebounded significantly after the Spring Festival.

Further, in terms of LCD (liquid crystal display), the demand side was affected by the stocking demand for sports events and the expectation of high price increases, and the orders of end customers were released in advance. In terms of product prices, the prices of TV products have risen in an all-round way since February, and the increase has been expanding in March.

In terms of OLED (organic light-emitting diode technology), in 2023, the single-year shipment volume of BOE A flexible AMOLED (active matrix organic light-emitting diode technology) products will reach a new high, and the shipment volume in the first quarter of 2024 will maintain a year-on-year increase, and it is expected that the annual shipment target in 2024 will be 160 million pieces, a year-on-year increase of more than 30%. The company continues to focus on the high-end demand for flexible AMOLED, especially in the high-end products represented by folding, which has obvious competitive advantages.

The company disclosed that with the continuous improvement of the penetration rate of flexible OLED panels in the smartphone field, the global shipments of flexible OLED panels in 2023 will increase significantly year-on-year, of which the shipments and penetration rate of folding products have been greatly improved. In terms of price, the price of some flexible OLED products has begun to rise since the fourth quarter of 2023 and will continue to the first quarter of 2024.

In terms of business layout, BOE A has built a development structure of "1+4+N+ ecological chain". "1" refers to the semiconductor display business is the company's core competence and high-quality resources, "4" is the company's Internet of Things innovation, sensing, MLED and smart medical engineering in the process of Internet of Things transformation, the four main fronts, "N" is the Internet of Things subdivision application scenarios, is the specific focus of the company's Internet of Things transformation and development.

In 2023, the company will achieve operating income of 174.543 billion yuan, and the net profit attributable to shareholders of listed companies will be 2.547 billion yuan, down 2.17% and 66.22% year-on-year, respectively, and the net profit after deducting non-recurring gains and losses will be -633 million yuan.

Among them, the display device business accounts for more than eighty percent of the company's operating income. In 2023, BOE's A display device business will achieve revenue of 147.053 billion yuan, accounting for 84.25% of the company's operating income. During the reporting period, the company ranked first in the world in terms of LCD mainstream application shipments, nearly 120 million pieces of flexible OLED were shipped, setting a new high in single-year shipments, and the company started the construction of the first 8.6th generation AMOLED production line in China, consolidating its leading position in the semiconductor display industry.

The performance of two companies in the same industry in the first quarter also rose, and some companies turned around their losses

According to the data of Choice financial terminal, BOE A belongs to the Shenwan industry "electronic-optical-optoelectronics-panel" classification, and there are 42 listed companies under this industry classification. In addition to BOE A, in this industry, Juncheng Technology (301106.SZ), Tongxingda (002845. SZ) also disclosed its performance forecast for the first quarter of this year.

Juncheng Technology is mainly engaged in the research and development, design, production and sales of customized LCD display products. The company's existing products are mainly distributed in the four major non-consumer fields of industrial control, automotive electronics, smart home appliances and medical health, as well as some consumer electronics businesses. The LCD display screen developed by the company has been applied to the rail meter used in 5G base stations, realizing the application expansion of traditional liquid crystal display technology in emerging fields such as 5G. In the field of automotive electronics, the company has independently developed products such as large-size on-board LCD screens and streaming media smart rearview mirrors, and has the ability to achieve mass production.

In the first quarter of 2024, Juncheng Technology expects to achieve a net profit attributable to shareholders of listed companies of 19 million yuan to 22 million yuan, a year-on-year increase of 64% to 90%. During the reporting period, the company's operating income in the field of automotive electronics and consumer electronics applications achieved rapid growth. In addition, the company has increased R&D investment, enhanced product competitiveness, and helped the company expand rapidly in major market business segments.

TXD is mainly engaged in the R&D, design, production and sales of LCD, OLED liquid crystal display modules, optical camera modules and semiconductor advanced packaging and testing. Among them, Ganzhou TXD, a subsidiary of Ganzhou TXD, as the carrier of the company's LCD module business, now has more than 40 integrated production lines for smart phones, smart wearables and tablets/laptops, and has become an industry benchmark smart chemical factory.

TXD expects to achieve a net profit attributable to shareholders of listed companies of 7 million yuan to 10 million yuan in the first quarter of 2024, and a net profit of 5.5 million yuan to 8 million yuan after deducting non-recurring gains and losses, compared with -64.5323 million yuan and -80.3048 million yuan in the same period last year, respectively. During the reporting period, the company's main product shipments and gross profit margin increased significantly year-on-year, coupled with the company's continuous optimization of internal management, which in turn drove the net profit to achieve significant growth.

The production capacity of many leading enterprises in the panel industry has been gradually released

In recent years, mainland high-generation production lines have successively released production capacity, and global panel production capacity has further concentrated in Chinese mainland, and the current scale of mainland panel industry is the first in the world.

In the field of A-shares, one of the two core businesses of TCL Technology (000100.SZ) is semiconductor display, the company focuses on the development of large-size, high-end, differentiated LCD products, and the investment in new technologies and applications such as AMOLED flexibility, multi-fold and curl, and actively develops the next generation of display technology in collaboration with the upstream and downstream industry chains. As of the close of trading on April 12, 2024, the total market value of TCL Technology's A-share shares is about 91.3 billion yuan, ranking high in the industry.

TCL Huaxing is the main operator of TCL Technology's semiconductor display business, and maintains a leading market position in the field of large-size panels. In the first three quarters of 2023, TCL Huaxing TV panel market share will maintain the world's second, the overall display shipment ranking will increase to the world's third, LTPS mobile phone panel shipments will be the world's third, and the flexible OLED mobile phone panel share will be the fifth in the world.

Thanks to the ramp-up of production capacity and the commissioning of the project, TCL Huaxing has further increased its panel production capacity since 2022. As of the end of September 2023, the company has built or is building a total of 9 panel production lines, and supporting module factories in Suzhou, Wuhan, Huizhou and India, covering large, medium and small sizes. In terms of shipments, from January to September 2023, TCL Huaxing's shipments of large-size products increased by 11.6% year-on-year to 61.05 million pieces, and the shipments of small- and medium-sized products increased by 25.9% year-on-year to 86.01 million pieces.

Shenzhen Tianma A (000050.SZ) has a small and medium-sized mainstream display technology layout in all fields, and currently maintains an industry-leading position in LTPS smartphones, vehicle displays, industrial displays, rigid smart wearables, medical, human-computer interaction and other fields. In 2023, the company's flexible OLED mobile phone module shipments (including TM18) will increase by more than 250% year-on-year, ranking second in China in terms of market share.

Shenzhen Tianma A disclosed that in 2024, the company will continue to promote the potential of TM17 production line capacity mining and accelerate the gradual release of the second phase of TM18 production line. The company has introduced the new 8.6th generation line (TM19) and new display module production line (TM20) and other advanced production capacity for the vehicle display business, which will gradually enter the mass production ramp-up this year.

Hehui Optoelectronics (688538. SH) is one of the earliest domestic manufacturers in the industry to achieve mass production of AMOLED, the company's existing 4.5th generation and 6th generation AMOLED production lines can produce rigid and flexible AMOLED semiconductor display panel products, among which the mass production capacity of rigid AMOLED semiconductor display panel ranks first in China and second in the world, with production capacity advantages.

In terms of production capacity, the company's 4.5th generation AMOLED production line has a mass production capacity of 15K/month, the 6th generation AMOLED production line has an original planned production capacity of 30K/month, and as of the end of the 2023 reporting period, it has a mass production capacity of 22.5K/month, and another 7.5K/month production capacity is in trial production, which is expected to be mass-produced in the first half of 2024, and the new 15K/month production line of the fund-raising project is under construction, and trial production is expected to start in 2024. In 2023, the shipment of AMOLED semiconductor display panels will exceed 50 million pieces, a year-on-year increase of 59.53%, and a new record high. As of the close of trading on April 12, 2024, the company's total market capitalization is about 29.4 billion yuan.