Core Insights - The global smartphone terminal market is experiencing stable demand, with brand competition focusing on pricing and channel strategies. However, market growth is shrinking due to increased inventory and strong cost-reduction demands from terminal brands [1][2]. Panel Demand Analysis - **a-Si LCD**: Demand remains high due to stable needs from white-label customers and the repair market, but price sensitivity in the low-end market leads to slight price reductions from suppliers [1]. - **LTPS LCD**: Both supply and demand are expected to remain low, with manufacturers shifting capacity to mid-size products, resulting in stable prices for LTPS LCD smartphone panels [1][4]. - **ROLED**: Prices for rigid OLED panels have slightly decreased, but demand has not significantly increased due to more brands shifting towards FOLED [2]. - **FOLED**: Demand is expected to grow in the third quarter, but intense competition during project bidding has led to a disconnect between demand growth and price reductions [2]. Tablet Panel Market - In the domestic market, tablet sales exceeded expectations during the "618" promotion, but demand is adjusting post-promotion, leading to reduced panel procurement by some brands. Ongoing tightening of national subsidies is further suppressing consumer purchasing intent [3]. - In North America, overall consumer demand remains weak despite cost transfers from supply chain shifts not yet impacting end prices [3]. Supply Side Overview - **a-Si LCD**: Demand related to tablets remains stable, with prices holding steady [4]. - **LTPS Production Lines**: Despite pressure on smartphone panel demand, strong demand for mid-size products keeps production lines operating at high utilization rates, maintaining stable prices [4].

Core Viewpoint - Huike Co., Ltd. is facing increased uncertainty in its second attempt to go public (IPO) due to being selected for a site inspection, despite its leading position in the global semiconductor display industry [2][3]. Group 1: Company Performance and Financials - Huike's revenue from 2019 to mid-2022 showed significant fluctuations, with revenues of 105.77 billion, 184.64 billion, 357.09 billion, and 133.14 billion respectively, while net profits were -12.77 billion, 4.15 billion, 54.06 billion, and 2.5 billion [5]. - For the period from 2022 to 2024, Huike's projected revenues are 271.34 billion, 357.97 billion, and 403.1 billion, with net profits of -14.28 billion, 25.66 billion, and 33.39 billion [5]. - The company has a high asset-liability ratio, with a debt ratio of 68.78% as of the end of 2024, and total assets amounting to 1,007.28 billion [9]. Group 2: R&D Investment - Huike's R&D expenses from 2022 to 2024 were 14.31 billion, 13.21 billion, and 14.11 billion, with a compound annual growth rate of -0.69%, indicating stagnant investment in R&D [6]. - The R&D expense ratio decreased from 5.27% to 3.5% over the same period, falling below the industry average of 5.31% and 5.5% [6]. Group 3: Market Position and Valuation - Huike ranks third in global TV panel shipments, fourth in monitor panel shipments, and third in smartphone panel shipments, with market shares exceeding 10% [7]. - The company's valuation has significantly increased, reaching 610.69 billion by December 2024, up approximately 2.37 times from 181.26 billion in February 2020 [8]. Group 4: IPO Plans and Funding - Huike plans to raise 85 billion through its IPO, with up to 10 billion allocated for debt repayment [2][3]. - The company has received multiple rounds of capital injections from state-owned enterprises, contributing to its rising valuation [8].

Group 1 - The global flat panel display market is expected to grow by 11% year-on-year in 2024, driven by various product categories, with televisions and tablets contributing the most to the growth [1] - Television panel revenue is projected to increase by 19% in 2024, primarily due to rising demand in the large-size segment, which also improves the overall average selling price [1] - The smartphone remains the largest application area for flat panel displays in 2024, but its growth is expected to be flat, aligning with downstream shipment trends [1] Group 2 - The display and PC panel revenue is anticipated to achieve double-digit growth in 2024 after hitting a low at the end of 2023, with future growth expected to maintain mid-single-digit levels [4] - The AR/VR panel revenue is declining due to a drop in device shipments, but growth is expected to resume in the next couple of years, particularly with the integration of AI technologies [4] - The automotive sector is becoming a significant growth driver for panel revenue, with increasing demand for larger and more precise displays in cockpit infotainment systems [4]

Core Viewpoint - Sharp is selling its second factory at the Kameyama plant to its parent company, Hon Hai Precision Industry, in response to deteriorating profitability in the liquid crystal panel business due to increased production by Chinese companies and falling panel prices [1]. Group 1 - The Kameyama plant was previously known for producing televisions that enhanced the Sharp brand's visibility [1]. - The second factory's operating rate has decreased to about 80% of its original capacity as of June 2024 [1]. - Sharp aims to improve the profitability of its liquid crystal panel business by divesting from less profitable facilities [1]. Group 2 - The Kameyama plant currently focuses on producing small to medium-sized panels for smartphones, tablets, and personal computers [1]. - The decision to sell the second factory is part of Sharp's strategy to restructure its liquid crystal panel operations and enhance overall performance [1].