Jin Rong Jie·2025-05-22 06:22Core Viewpoint - The company, BOE Technology Group, is optimistic about the LCD industry, highlighting a shift towards "demand-driven production" and a healthy market recovery in mainland China, which is expected to mitigate uncertainties from international trade dynamics [1][2]. Industry Supply and Demand - The LCD industry is transitioning to a "demand-driven production" strategy, with manufacturers adjusting production rates based on market needs. This has led to a significant reduction in inventory levels, bringing them closer to healthy standards [2]. - The average utilization rate in the LCD industry has been recovering since November 2024, maintaining above 80% in the first quarter of 2025. Adjustments will be made in the second quarter in response to changing demand [2][3]. LCD Product Pricing Trends - LCD TV panel prices for mainstream sizes have increased from January to March 2025 due to strong end-user demand. However, demand is expected to cool in the second quarter due to changes in the international trade environment and diminishing returns from "trade-in" policies [3]. - Prices for MNT panels in the IT sector are experiencing moderate increases, while NB panel prices remain stable [3]. Project Development - The company’s 8.6-generation AMOLED production line in Chengdu commenced equipment installation four months ahead of schedule on May 20, marking a transition from construction to operational phase, which is crucial for future product launches and mass production [4]. Depreciation and Capital Expenditure - The company anticipates depreciation of approximately 38 billion in 2024, with a peak expected this year as new projects become operational and existing production lines reach the end of their depreciation period [4][5]. - Future capital expenditures will focus on the "screen and IoT" strategy, emphasizing semiconductor display business and innovation in IoT, with investments directed towards new projects, outstanding payments for existing projects, and maintenance of current production lines [5].