BOE(SZ:000725) Guoxin Securities·2025-06-28 15:21Investment Rating - The report maintains an "Outperform" rating for the LCD industry [2] Core Viewpoints - BOE plans to acquire a 30% stake in Rainbow Optoelectronics, which is expected to optimize the competitive landscape of the panel industry [4][6] - The average gross margin of major Chinese LCD manufacturers increased by 1.81 percentage points year-on-year and 3.60 percentage points quarter-on-quarter to 14.89% in Q1 2025 [5] - The report indicates a downward trend in TV panel prices, with expectations of further declines in July [6][22] - The global large-size LCD panel shipment area decreased by 6.08% year-on-year in May 2025, with specific declines in TV and monitor shipments [9][32] Market Performance - From May 2025 to the present, the panel index has risen by 3.54%, outperforming major stock indices [8][15] - As of June 23, 2025, the total market capitalization of the A-share panel industry was 513.69 billion yuan, with an overall price-to-book ratio of 1.49x, at the 57.3 percentile of the past five years [15][20] Price & Cost - In June 2025, the prices of various sizes of LCD TV panels decreased, with a forecasted further decline in July [6][22] - The prices for IT panels remained stable across different sizes in June 2025 [7][22] Supply & Demand - The report forecasts a 2.31% increase in global large-size LCD capacity in 2024 compared to 2023, with a slight growth of 0.21% expected in 2025 [9][26] - The demand for large-size LCD panels is projected to decline, particularly in the TV segment, which saw an 8.01% year-on-year decrease in shipment area in May 2025 [9][32] Performance Review - In May 2025, global large-size LCD panel revenue was $6.195 billion, reflecting a year-on-year decline of 10.72% [57] - Major manufacturers' revenues showed varied performance, with BOE's revenue at $1.78 billion, down 12.92% year-on-year [60]