Xin Lang Cai Jing·2025-11-24 01:01Core Viewpoint - BOE (京东方) is actively engaging with institutional investors to discuss the supply-demand dynamics, pricing trends, technological strategies, and shareholder return plans in the LCD and OLED markets [1] LCD Market - The demand for TV products is expected to grow in 2025 due to national subsidies and export policies, with shipment volume and area anticipated to increase, although the trend towards larger sizes may slow down due to rising demand for smaller sizes in emerging markets [2] - IT products are benefiting from replacement demand, with a forecasted rapid growth in shipment volume for the year, while monitor (MNT) product shipments are expected to remain flat year-on-year [2] - The industry is characterized by "production on demand," with an overall increase in average utilization rates in Q3, but a forecasted decline to below 80% in Q4 [2] - Price differentiation is expected in LCD products, with a slight price adjustment for TV products in Q4 while IT product prices are projected to remain stable [2] - The replacement cycle and AI technology are expected to continue driving IT product demand, while major sporting events like the World Cup may boost TV product demand in Q1 [2] OLED Competition - Despite entering the traditional peak season in the second half of the year, the overall supply of OLED remains excessive, with a notable differentiation in product structure [3] - The shipment volume of foldable products is expected to decline, while the demand for overseas brand LTPO products is increasing, and low-end Ramless products are seeing rapid growth [3] - BOE's AMOLED technology is becoming a key choice for high-end IT products due to its high picture quality and lightweight characteristics [3] - The newly established 8.6-generation AMOLED production line will focus on high-end touch displays for laptops and tablets, aiming to capture the high-end market [3] - The company has chosen LTPO backplane technology, which has been validated in its sixth-generation line and is recognized by customers for high-demand applications [3] Technological Layout and Capital Planning - BOE anticipates 2025 to be a peak year for capital expenditures, primarily due to the investment in the Chengdu 8.6-generation OLED production line [4] - Expenditures in 2026 will focus on subsequent equipment procurement, while a significant decrease in capital expenditures is expected in 2027 as production stabilizes and no new production line investments are planned [4] - Depreciation is expected to peak in 2025, with gradual declines thereafter as three sixth-generation flexible OLED production lines have been fully converted to fixed assets [4] - The company plans to use cash flow primarily for minority shareholder equity buybacks, with a recent reduction in capital for the Wuhan 10.5-generation line [4] Shareholder Return Mechanism - BOE's shareholder return plan, announced in April 2025, stipulates that annual cash distributions will not be less than 35% of the net profit attributable to the parent company [5] - The total amount allocated for share buybacks each year will not be less than 1.5 billion yuan, with additional plans for other purposes [5] - The company aims to establish a continuous, stable, and predictable shareholder return mechanism, reflecting its commitment to sharing growth dividends with shareholders [5]