Panel price increase + substitution effect OLED market space is broad

- Nov 30, 2018-

lcd manufacturer

Recently, the price of LCD screens has risen sharply. Among them, the small size of 32-inch and 6-inch prices has increased the most. The base price of the panel in July has become a foregone conclusion. In addition, unlike LCD lighting, which relies on a backlight module, OLED is a self-illuminating mode, which has obvious advantages, and it continuously improves the penetration rate in the field of smart terminals and televisions. The panel price increase superposition substitution effect, the OLED industry is expected to usher in an outbreak, which deserves investors' attention.

Panel prices are rising rapidly

Since March, panel prices have continued to rise, with 32-inch and 6-inch small size prices rising the most. What is even more surprising is that the 1.77-inch mobile phone screen of the function machine has increased by more than 200%, and now the situation is In July, the rising tone of the LCD screen has become a foregone conclusion.

Institutional sources pointed out that if you carefully analyze the reasons for the price increase of this panel, you can find that the short-term price increase problem will continue for some time. From the year-to-date price increase process, the production capacity reduction due to the maturity of the TFT LCD technology and overcapacity is the fuse of this round of price hikes. In this round of price increases, mainland enterprises will be the most beneficial. From the industry chain, in order to consolidate the supply, Huawei has already booked the mobile phone panel production capacity of a number of companies. The manufacturer's quotation of the display has been updated once a week, and the price is subject to the order payment time to avoid the impact of panel price increase. . Therefore, for panel manufacturers, it is expected that the performance in the second half of the year is expected to exceed expectations.

According to the data of the first quarter of 2016, the cost of OLED is very close to that of LCD, and with the further improvement of yield, OLED will have the advantage of cost, and the past constraints are no longer embarrassing. At the same time, Apple is expected to adopt OLED screens in the iPhone in 2017. As a benchmark for smart phones, each innovation will have a strong demonstration effect on the industry chain, and the application effect of Huawei and Xiaomi will also usher. More domestic manufacturers follow suit. And on the supply side, not only Samsung and LG are actively expanding production to prepare for Apple's orders, but domestic companies are also actively expanding their production in order to catch up with South Korea. This panel price increase is good for the OLED industry.

Broad market space

Unlike LCD lighting, which relies on a backlight module, the OLED is in a self-illuminating mode, that is, it is powered by the illuminating material to emit light. The different lighting modes make the structure different, and also achieve the advantages of fast screen response, good display performance, thinner and lighter, lower power consumption, flexible display, etc., and are in the fields of wearable devices, VR devices, curved mobile phones, etc. The first choice will continue to increase penetration in the smart terminal and television fields in the future.

Industrial Securities pointed out that OLED panels are mainly used in the mobile phone field, occupying more than 90% of the OLED market. Since 2010, OLED technology has developed rapidly in the mobile phone field, but it experienced a decline in 2014, mainly because the market share of Samsung mobile phones dropped from 32.5% to 28%, and Samsung is the main OLED mobile phone screen in the world. The source of demand, the decline in its market share directly led to the decline in global OLED panel shipments. However, with the maturity of OLED technology and the promotion of Samsung in 2015, the OLED mobile phone market once again rose, and panel shipments increased by 53% compared with 2014, reaching 275 million.

The rapid development of OLED will drive the rapid expansion of the entire OLED industry chain, including the manufacturing equipment, materials, assembly and other industrial chains will give birth to huge opportunities. Most OLED materials are not compatible with LCDs, so the market opportunities for OLED upstream materials are even greater. The upstream materials of OLED are mainly cathode, anode, transmission layer material and luminescent layer material. Due to high technical barriers in the upstream material field of OLED, small market competition and high profit level, the profitability of OLED upstream materials is expected to remain at a high level in the future. Among them, the material of the transmission layer and the material of the luminescent layer are different from those of the LCD, which is new and has more opportunities in the future.

Domestic enterprises mainly provide intermediates and monomer crudes for OLED organic materials for international OLED material manufacturers. With the outbreak of demand for OLED panels, the sales volume of domestic intermediates and monomer crude products is expected to increase substantially. The key factors in the OLED intermediate industry are product quality and R&D response speed. Due to the high technical threshold, the industry has a good competitive landscape and a high profit level. The current leading enterprises are expected to continue to grow and follow the rise of the entire industry chain.