Summary of Key Points from Conference Call Industry Overview - The AI chip market in China is rapidly developing with significant capital expenditure increases. The new B40 chip from NVIDIA, which does not require HBM licenses, is expected to enhance performance by approximately 30% [2] - Domestic AI chip manufacturers such as Huawei, Haiguang, and Kunlun are supported by Deepfake technology and have been certified. Most domestic AI chips are produced using SMIC's 7nm process, although yield and capacity challenges persist [1][2] - The panel market is showing signs of recovery, particularly in the TV segment, where prices have stabilized and may rise if sales are strong in Q4, potentially due to preparations for the 2026 World Cup [1][4] Company-Specific Insights - **Kreedo**: Stock price surged due to Q1 2026 earnings exceeding expectations by 60%, with revenue guidance raised by 15%-20%. The company anticipates a 120% year-over-year revenue growth [1][5][6] - **汇顶科技 (Goodix)**: Increased 2025 ultrasonic fingerprint sensor shipment forecast to 40 million units, driven by demand from mid-range smartphone manufacturers [1][7] - **乐鑫 (Espressif)**: Strong demand for WiFi MCU products in IoT applications, expecting a 30% compound annual growth rate in revenue over the next few years [1][7] - **阿里巴巴 (Alibaba)**: Significant investment in GPU procurement despite H20 restrictions, indicating robust domestic AI demand [1][8] - **Oracle**: Plans to significantly expand its global data center footprint by 2026, relying on NVIDIA and AMD for GPU supply [1][9] Capital Expenditure Trends - **八八 (Baba)**: Noted the highest increase in capital expenditure in Q3, maintaining an annual guidance of 100 billion RMB [2][11] - **腾讯 (Tencent)**: Capital expenditure remains stable at 96 billion RMB for the year, with slower growth in cloud services [2][12] - **百度 (Baidu)**: Smaller capital expenditure but showed a significant increase, with a stable growth rate of around 20% expected [2][12] Market Dynamics - The TV panel market is expected to see price increases if Q4 sales are strong, while the mobile panel market is experiencing slight price declines due to weak domestic demand [4] - The power semiconductor sector is witnessing growth, particularly in automotive applications, with Yangjie reporting a 60% year-over-year growth in related business [1][10] Additional Considerations - The overall AI demand in China has significantly increased this year, particularly in the second half, with cloud service providers showing strong GPU procurement activity [1][8] - Concerns regarding depreciation expenses have diminished as major companies report figures in line with expectations, allowing focus to shift to revenue growth and profit margins [2][15] - Baidu may have opportunities to reduce capital expenditures in the next quarter as it focuses more on internal development [2][16]

Company Overview - VisiNova Technology Co., Ltd. is located in Haidian District, Beijing, and was established on January 7, 1998. The company was listed on April 13, 2010. Its main business involves the research, production, sales, and technical services of AMOLED new display products, with 96.92% of its revenue coming from OLED products and 3.08% from other products or services [1]. Stock Performance - As of September 5, VisiNova's stock price increased by 2.06% to 9.93 CNY per share, with a total market capitalization of 13.87 billion CNY. The stock has seen a year-to-date decline of 3.40%, a 4.34% drop over the last five trading days, a 5.08% increase over the last 20 days, and a 12.08% increase over the last 60 days [1]. - The company has appeared on the trading leaderboard twice this year, with the most recent occurrence on March 20, where it recorded a net buy of 4.76 million CNY [1]. Financial Performance - For the first half of 2025, VisiNova reported a revenue of 4.12 billion CNY, representing a year-on-year growth of 4.79%. However, the net profit attributable to shareholders was -1.06 billion CNY, which is a year-on-year increase of 9.74% [2]. Shareholder Information - As of August 20, VisiNova had 67,900 shareholders, an increase of 9.20% from the previous period. The average number of tradable shares per shareholder decreased by 8.43% to 20,545 shares [2]. - The company has distributed a total of 53.24 million CNY in dividends since its A-share listing, with no dividends paid in the last three years [3]. Institutional Holdings - As of June 30, 2025, Hong Kong Central Clearing Limited was the ninth largest circulating shareholder, holding 8.23 million shares, an increase of 173,500 shares from the previous period [3].

Company Overview - Deep Tianma A's stock price increased by 2.19% on September 5, reaching 9.78 CNY per share, with a total market capitalization of 24.037 billion CNY [1] - The company has seen an 8.31% increase in stock price year-to-date, with a 4.02% decline over the last five trading days, a 4.26% increase over the last 20 days, and a 23.64% increase over the last 60 days [2] - The company specializes in display technologies for mobile smart terminals, automotive displays, and value-added services in medical and industrial control sectors, with 99.05% of its revenue coming from display screens and modules [2] Financial Performance - For the first half of 2025, Deep Tianma A reported revenue of 17.475 billion CNY, a year-on-year increase of 9.93%, and a net profit attributable to shareholders of 206 million CNY, reflecting a significant year-on-year growth of 142.07% [2] - The company has distributed a total of 1.429 billion CNY in dividends since its listing, with no dividends paid in the last three years [3] Shareholder Information - As of August 20, 2025, the number of shareholders for Deep Tianma A was 68,300, an increase of 1.12% from the previous period, with an average of 35,984 circulating shares per shareholder, a decrease of 1.11% [2] - As of June 30, 2025, Hong Kong Central Clearing Limited was the seventh largest circulating shareholder, holding 54.9572 million shares, a decrease of 5.8191 million shares from the previous period [3]

Core Insights - The global panel industry showed significant differentiation in the first half of 2024, with leading companies like BOE and TCL Huaxing achieving notable growth through large-size LCD panels, while many small and medium-sized OLED panel companies continued to struggle with losses [1][3] Financial Performance Summary - BOE reported revenue of 101.28 billion yuan, a year-on-year increase of 8.45%, and a net profit of 3.25 billion yuan, up 42.15%, with a healthy gross margin of 14.41% [2] - TCL Huaxing achieved revenue of 50.43 billion yuan, a 14.4% increase, and a net profit of 4.32 billion yuan, surging 74% [2] - Deep Tianma recorded revenue of 17.48 billion yuan, a 9.93% increase, and successfully turned a profit with a net profit of 0.21 billion yuan and a gross margin of 16.21% [2] - Rainbow Technology saw a revenue decline of 6.72% to 5.67 billion yuan, with a net profit drop of 50.93% [3] - Other companies like Visionox, Longteng Optoelectronics, Hehui Optoelectronics, and Huaying Technology reported losses, with net profits of -1.06 billion yuan, -0.15 billion yuan, -0.84 billion yuan, and -0.48 billion yuan respectively [3] Market Trends and Challenges - The performance disparity is attributed to differences in product structure and technology routes, with BOE and TCL Huaxing benefiting from the recovery of the large-size LCD panel market and growing demand for high-end IT and automotive displays [3] - Companies focused on small-size, OLED, and traditional displays face challenges from weak demand and intense price competition, compounded by high costs, leading to difficulties in profitability [3] - The overall trend indicates a "strong large-size, weak small-size" and "stable LCD, pressured OLED" market development [3] Future Outlook - Demand for large-size TV panels is expected to remain stable in the second half of the year, though price stability is uncertain [4] - Demand for smartphone OLED panels may increase with new device releases, while IT panel demand is expected to remain stable [4] - Companies' ability to optimize product combinations and find their positioning amid technological iterations will be crucial for annual performance [4]

Core Viewpoint - The ongoing patent disputes between Samsung and BOE have intensified, with BOE filing for the invalidation of seven Samsung patents in response to Samsung's accusations of patent infringement [1][3][4]. Group 1: Legal Actions - BOE submitted an invalidation request for seven Samsung display patents to the U.S. Patent and Trademark Office (PTAB) [1]. - Samsung filed additional patent infringement lawsuits against BOE in Texas, claiming that BOE's OLED screens for the Nubia Z60 Ultra phone violated its patents [1][3]. - The legal battle has escalated since 2022, with Samsung removing BOE from its supplier list and filing multiple complaints against BOE for patent and trade secret infringements [3][4]. Group 2: Market Position and Impact - According to Sigmaintell, BOE is projected to ship approximately 180 million a-Si LCD panels and 71 million flexible OLED panels in the first half of 2025, capturing a market share of 24.2% [5]. - Samsung ranks second with over 170 million total shipments and a market share of 15.7%, including approximately 84.4 million rigid OLED and 86.6 million flexible OLED panels [5]. - In the iPhone panel supply market, BOE has increased its share to 22.7%, surpassing LG Display for the first time, while Samsung holds a 56% share [5].

Core Viewpoint - The Chinese panel industry is experiencing a recovery in the first half of 2025, with leading companies like TCL Technology and BOE achieving revenue growth and improved profits due to increased demand for large-size TVs and emerging applications like automotive and commercial displays, alongside advancements in flexible OLED, printed OLED, and MLED technologies [1][2][3]. Revenue and Profit Growth - TCL Technology reported a revenue of 85.6 billion yuan, a year-on-year increase of 6.7%, and a net profit of 1.88 billion yuan, up 89.3% [2]. - BOE achieved a revenue of 101.278 billion yuan, an 8.45% increase, with a net profit of 3.247 billion yuan, up 42.15% [3]. - Deepin Technology reversed its previous losses, reporting a revenue of 17.475 billion yuan, a 9.93% increase, and a net profit of 206 million yuan [3]. Market Dynamics - The panel market is stabilizing with improved demand and cost reductions, leading to enhanced profitability [2]. - The growth in large-size LCD production and the expansion of mid-size panels in various applications such as monitors, laptops, automotive, and mobile devices are contributing to revenue increases [2][3]. - The demand for panels is driven by the steady retail demand for TVs and the structural demand improvements in automotive, commercial, and gaming displays [3]. New Display Technologies - Companies are competing in new display technologies such as OLED, printed OLED, MLED, and Micro-LED [4]. - TCL's OLED business is growing, with an 8.7% increase in product sales, and it is expanding its printed OLED production capacity [4]. - BOE is advancing in flexible display solutions and has launched its first 8.6-generation AMOLED production line ahead of schedule [4]. Global Supply Chain and Production - TCL is establishing module factories in Vietnam and India to optimize costs and improve delivery speed to global customers [5]. - BOE's smart terminal factory in Vietnam is set to enhance its integrated industrial ecosystem [5]. - The establishment of overseas production and service networks helps mitigate trade friction and logistics volatility, enhancing the ability to secure international orders [5]. Industry Challenges - There are challenges in the industry, including potential impacts from cross-sector business operations and the cyclical fluctuations in panel prices [5]. - The third quarter is expected to see a recovery in panel supply alongside seasonal demand, with an estimated utilization rate of 86% for panel manufacturers [6].

Core Viewpoint - TCL Technology indicates that while external tariff issues have disrupted the global supply chain inventory rhythm, overall global demand remains unchanged. The second quarter saw a decline in inventory demand compared to the first quarter, but this was primarily a timing issue rather than a demand issue. [1] Group 1: Demand Outlook - In the second half of the year, demand for TV panels is expected to rebound quickly due to upcoming shopping events such as China's Double Eleven, India's Diwali, and overseas Black Friday. [1] - The year 2026 is anticipated to be significant for sports events, which is expected to positively influence demand from the end of this year through the World Cup period next year. [1] Group 2: Supply Chain Dynamics - The first quarter experienced strong inventory demand, while the second quarter saw a sequential decline, indicating a shift in the inventory rhythm rather than a decrease in total demand. [1] - The industry is expected to reach a new balance between supply and demand starting in the third quarter. [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 5.76 CNY [6][4]. Core Insights - The company reported a revenue of 101.3 billion CNY for 1H25, representing an 8% year-over-year increase, with a net profit of 3.25 billion CNY, up 42% year-over-year [1]. - The LCD business is expected to improve in 3Q25 due to the upcoming consumer electronics peak season, which will enhance the supply-demand balance and potentially restore ASPs [2]. - The OLED business is also anticipated to see improvements in shipment structure and profitability in 3Q25, driven by new orders from major North American clients [3]. Summary by Sections Financial Performance - In 1H25, the company achieved a revenue of 1,013 million CNY, with a gross margin of 14.4% and a net profit of 32.5 million CNY [1]. - For 2Q25, the revenue was 507 million CNY, with a gross margin of 13.0%, reflecting a decline due to reduced demand for LCD panels [1]. LCD Business Outlook - The average price of large-size LCD panels decreased by 3.2% year-over-year in 2Q25, impacting the company's profitability [2]. - The report forecasts a recovery in the LCD business in 3Q25 as clients prepare for the consumer electronics peak season [2]. OLED Business Outlook - The OLED segment faced challenges in 1H25 due to a deteriorating shipment structure and price competition [3]. - Anticipated improvements in 3Q25 are linked to new orders from major clients and the expiration of depreciation pressure on production lines [3]. Valuation Metrics - The target price of 5.76 CNY is based on a price-to-book ratio of 1.52x for 2025, which is above the average of comparable companies [4]. - The current stock price corresponds to a 1.11x price-to-book ratio, indicating a historically low valuation level [4].

Core Viewpoint - BOE has successfully entered the iPhone panel supply chain, with significant shipments for the iPhone 16 and projections for the iPhone 17, indicating a shift in the competitive landscape of smartphone panels towards a three-way competition among BOE, Samsung, and LG Display [1][5][11]. Group 1: Market Share and Supply Chain Dynamics - BOE supplied 43 million panels for the iPhone 16, and is expected to supply 5 million panels for the iPhone 17 Pro, bringing total shipments to 45-50 million [1][5]. - Apple's overall iPhone panel shipments reached over 230 million last year, with Samsung and LG Display capturing the remaining market share after BOE [3][4]. - Samsung Display shipped 63.8 million panels for the iPhone 16 series, maintaining its position as the largest OLED panel supplier for Apple [3][4]. - LG Display shipped 42 million panels for the iPhone 16 series, with expectations to increase shipments for the iPhone 17 series [4][5]. Group 2: Competitive Landscape and Technology - The competition among BOE, Samsung, and LG Display is intensifying, with a focus on technology and order distribution becoming critical variables in the global smartphone panel market [3][5]. - The entry of BOE into the high-end iPhone 17 Pro panel supply chain marks a significant achievement, reflecting its advancements in technology and production capabilities [5][6]. - The ongoing patent disputes between BOE and Samsung highlight the competitive tensions in the OLED market, with both companies engaging in legal battles over intellectual property [7][9]. Group 3: Future Projections and Industry Trends - UBI Research predicts that BOE, Samsung, and LG Display will continue to be Apple's core panel suppliers, with Samsung expected to supply around 10 million panels for foldable iPhones [5][10]. - The global AMOLED smartphone panel shipment is projected to reach 420 million units in the first half of 2025, with Chinese manufacturers, including BOE, capturing a 51.7% market share [10][11]. - The trend indicates a shift in the OLED panel market towards Chinese manufacturers, with BOE expected to become the largest supplier of LCD panels for Apple's MacBook by 2025 [11][12].

Core Viewpoint - The reduction in production and sales by mainland Chinese panel manufacturers has effectively stabilized TV panel prices in the third quarter, with expectations for balanced supply and demand in the fourth quarter, leading to minimal price fluctuations, particularly for TV panels [1] Group 1: Production and Pricing - Mainland Chinese panel manufacturers have successfully implemented production and sales controls, resulting in a significant reduction in output during June, July, and August [1] - The measures taken have led to a halt in the decline of TV panel prices, with projections indicating stability in the fourth quarter [1] Group 2: Profitability - Panel manufacturers are expected to achieve profitability under the current conditions, although they will not see excessive profits [1] - Taiwanese panel manufacturers, including AUO and Innolux, are also anticipated to be profitable, with a stable customer base that includes Korean brands and Chinese TV manufacturers [1]