Investment Rating - The industry investment rating is "Overweight" (first time) [6] Core Insights - In January 2026, TV panel prices are expected to see a slight increase across the board due to the upcoming World Cup in June and the continuation of national subsidy policies [6] - In Q3 2025, global OLED display shipments increased by 65% year-on-year, with a total of approximately 644,000 units shipped [6] - Major panel manufacturers are maintaining full production capacity, while brand manufacturers are strategically increasing inventory ahead of demand [6] Summary by Sections Industry Performance - Over the past 12 months, the industry has shown a relative return of -4.82% compared to the CSI 300 index, with an absolute return of 20.21% [3] Market Trends - The demand for TV panels is expected to rise due to the World Cup and subsidy policies, leading to a potential price increase in January [6] - The supply side has seen tight conditions for certain production lines, which may lead to price adjustments for specific panel types [6] Company Insights - ASUS, Samsung, and MSI are the top three companies in OLED display shipments, with market shares of 21.9%, 18.0%, and 14.4% respectively [6] - Samsung is set to launch new Micro RGB TVs in 2026, featuring advanced LED technology [6] Investment Recommendations - Companies to watch include TCL Technology, JD.com A, OLED, Lite-On Technology, and Kangguang Technology due to the expected rise in TV panel prices and OLED shipment growth [6]

Core Viewpoint - The panel supply contraction in Q1 has led to a cooling of brand procurement, while a rising trend in global TV panel prices is beginning to emerge, with expectations of a mild price increase in January [1] Supply Side - In December, panel prices stabilized across the board due to controlled production by manufacturers, with expectations for a mild increase in January [1] - Major manufacturers are showing a strong commitment to production control during the Spring Festival, which is expected to be more intense than during the National Day holiday in 2025 [1] - The price trends for various sizes are as follows: - 32": Demand supports a balanced supply, with a stable average price in December and an expected increase of $1 in January [1] - 50": Limited demand but supply pressure from larger sizes, with prices stabilizing in December and an expected increase of $1 in January [1] - 55": Supply is becoming concentrated, leading to a gradual stabilization of prices in December and an expected increase of $1 in January [1] - Large sizes: Strong production control at G10.5 has significantly improved supply-demand dynamics, with stable prices in December and expectations for a mild increase in January [1] Demand Side - In Q1, brand procurement has shifted from panel stocking to inventory digestion, leading to a decrease in overall demand compared to the previous quarter [1] - The end of event stocking has weakened the overall procurement drive for Q1, while the Spring Festival holiday in China has temporarily paused procurement activities [1] - Despite some positive stimuli from rising storage prices and tax refund seasons, overall brand procurement demand is still expected to decrease compared to the previous quarter [1]

Core Viewpoint - TrendForce reports that TV panel prices remained stable in December, but supply shortages in storage are causing prices to rise, indicating a potential price increase for TV panels starting January 2026 [1] Group 1: Industry Outlook - The TV panel market is experiencing a shift, with expectations of price increases due to rising demand driven by events like the Winter Olympics and World Cup in 2026 [1] - The overall economic uncertainty is impacting panel demand, leading to a cautious approach in production strategies, with companies adopting a "just-in-time" production model [1][2] Group 2: Company Performance - AUO's Chairman, Pang Shuang-Lang, noted that the company faced losses in Q3 due to the appreciation of the New Taiwan Dollar, but operational profits remained close to breakeven when adjusted for exchange rates [1] - Innolux anticipates a seasonal decline in shipments for non-display sectors, commercial displays, and consumer displays by 1% to 3% this quarter [2] - Both AUO and Innolux are preparing for potential demand fluctuations, with AUO's panel production and utilization rates remaining relatively high, providing some support for panel prices [2]

Core Viewpoint - The revenue performance of Taiwanese panel manufacturers in November 2025 shows a mixed trend, with some companies experiencing growth while others continue to face challenges. [1][2] Revenue Summary - AUO reported a revenue of RMB 5.451 billion in November, with a year-on-year increase of 3.35% and a month-on-month increase of 14.92% [1][2] - Innolux's revenue fell to RMB 3.884 billion, down 8.95% year-on-year and 5.95% month-on-month, indicating increased market pressure [1][2] - HannStar's revenue rose to RMB 215 million, reflecting a year-on-year growth of 10.72% and a month-on-month increase of 6.60% [1][2] - Lianjia's revenue decreased to RMB 164 million, with a year-on-year decline of 5.99% and a slight month-on-month increase [1][2] - Ralco's revenue reached RMB 43 million, showing a significant year-on-year growth of 21.39% [1][2] Market Dynamics - The revenue changes in November indicate a market recovery and differentiation among companies, contrasting with the overall decline seen in October [1][2] - The small and medium-sized market is showing signs of recovery, with HannStar and Lianjia experiencing slight improvements [2] Company Developments - AUO is actively engaged in technology innovation and business integration, collaborating with various partners to develop new systems and optimize operations [3][4] - Ralco is considering acquiring a stake in Anke Optoelectronics, focusing on technology and business collaboration [5] Future Outlook - The fourth quarter is typically a slow season for the panel industry, but demand for TV panels remains stable, with expectations of price stabilization in December [6] - The anticipated price increases in panel products are expected to positively impact company revenues, particularly for AUO and Ralco [6]