Core Insights - The 2025 Self-Luminous Display Industry Seminar held by TrendForce highlighted the promising future and opportunities in the self-luminous display sector [2][5]. Group 1: Micro LED Commercialization - The commercialization of Micro LED is accelerating, particularly in wearable devices, large displays, automotive displays, and non-display applications, despite facing challenges such as high costs and power consumption [9]. - Major manufacturers like Samsung, LG, and BOE are planning to mass-produce Micro LED displays larger than 100 inches, with cost reduction being a common goal [9]. - In automotive displays, Micro LED's high brightness and contrast are advantageous, but issues like color shift at high temperatures remain [11]. - Micro LED shows potential in non-display applications, such as adaptive headlights and light interconnect technology for AI server cabinets, with interest from major companies like Apple and Microsoft [11]. Group 2: AR Glasses Development - AR glasses are seen as suitable devices for integrating AI functionalities, with major companies prioritizing the release of AI glasses before AR glasses [14]. - The main technologies in display for AR glasses include LCoS, OLEDoS, and LEDoS, with LEDoS gaining market attention for its diverse color technology [16]. - The optical technology for AR glasses is leaning towards waveguide solutions, with diffraction waveguides being a mainstream option [17]. Group 3: Global LED Display Market - The global LED display market is projected to grow slightly to $7.5 billion by 2025, with demand in the domestic market not showing significant improvement due to price declines from increased competition [21][23]. - The market is segmented into developed regions, where demand is weak due to tariffs, and developing regions, where LED display adoption is increasing [21]. - Long-term trends indicate continued penetration into developing markets, small to medium-sized clients, and emerging applications, with a forecasted market size of $10.2 billion by 2029 [23].

Core Viewpoint - LG Display's large-size OLED glass substrate input capacity increased by 28% in 2023, reaching 133K sheets/month, but still below the design capacity of 180K sheets/month, indicating potential issues with production line utilization [1][2]. Group 1: Production Capacity - LG Display's monthly input capacity for large-size OLED was 175K in 2021, decreased to 160K in 2022, further dropped to 104K in 2023, and rebounded to 133K in 2024, reflecting market volatility [2]. - The OP1 factory in Paju had an input capacity of 86K in 2021, reduced to 70K in 2022, fell to 39K in 2023, and increased to 58K in 2024. The Guangzhou OLED factory maintained a more stable capacity of 75K in 2024 [2]. Group 2: Market Demand and Future Outlook - Samsung Electronics plans to increase its procurement of OLEDs from LG Display, with expected shipments of approximately 1.4 million units in 2024 and a significant increase in 2025 [3]. - LG Display's CEO aims for profitability in 2024 by strengthening customer structure and driving cost innovation [3]. - The input capacity for OLED glass substrates for Apple products is also growing, from 31K in 2021 to 47K in 2024, indicating strong demand [3]. - LG Display's automotive display business has surpassed 2 trillion KRW in sales, showcasing market potential across multiple sectors [3].

Group 1: Market Overview - In the first 25 days of May, the national retail sales of passenger cars reached 1.358 million units, a year-on-year increase of 16% compared to the same period last year, and a month-on-month increase of 9% [1] - The retail sales of new energy vehicles (NEVs) during the same period reached 726,000 units, representing a year-on-year growth of 31% and a month-on-month increase of 11%, with a market penetration rate of 53.5% [1] - Cumulatively, 8.23 million passenger cars have been sold this year, showing a year-on-year growth of 9% [1] Group 2: HUD Technology Insights - The delivery volume of head-up display (HUD) vehicles in China is expected to reach 3.56 million units in 2024, marking a year-on-year growth of over 55%, with the penetration rate increasing from 11% in 2023 to 16% in 2024 [1] - The HUD market has surpassed the early adopter threshold of 16%, indicating a shift from linear to exponential growth in technology diffusion [1] - The domestic HUD industry chain benefits from a more complete structure and lower costs, approximately 50% lower than foreign counterparts, due to rapid development in the automotive sector [2] Group 3: Company Performance - Sunny Optical Technology (02382) is recognized as an industry leader in automotive lenses, with expectations for continued market share growth, driven by new growth engines such as laser radar, smart car lights, and HUD [3] - BOE Technology Group (00710) is a leading developer of TFT LCDs, focusing on automotive and industrial displays, with its BOEVx platform gaining market recognition for advanced display technologies [4] - Xinyi International (00732) reported a cumulative net revenue of approximately HKD 17.78 billion in 2024, a year-on-year increase of about 14.1%, with significant production capacity in TFT automotive displays [4]

Company Insights - Weichai Power (2338 HK/000338 CH) is expected to see a strong expansion in engine profit margins in 2024, with a projected net profit growth of 27% year-on-year to RMB 11.4 billion, aligning with expectations [2] - The company plans to distribute a final dividend of RMB 0.347 per share, resulting in a historical high payout ratio of 55%, up from 50% in 2023 [6] - The target prices for Weichai Power have been adjusted to RMB 18.7 and HKD 18.0, reflecting an increase from previous estimates [6] Market Performance - The Hang Seng Index closed at 23,579, up 0.41% for the day and 38.31% year-to-date [3] - The Hang Seng Tech Index rose by 0.29%, with a year-to-date increase of 48.48% [3] - The Shanghai Composite Index saw a slight increase of 0.15%, with a year-to-date growth of 13.41% [3] Sector Analysis - The healthcare, consumer staples, and energy sectors led gains in the Hong Kong market, while materials, information technology, and real estate sectors faced declines [5] - In the U.S. market, defensive sectors such as consumer staples and healthcare outperformed, while energy and information technology sectors experienced declines [5] - European markets saw declines in information technology, materials, and healthcare, with defensive sectors like utilities and consumer staples performing better [5] Future Outlook - Haidilao (6862 HK) is expected to accelerate store openings in FY2025, with a projected net increase of approximately 40 stores, reflecting a 3% year-on-year growth [7][9] - The company anticipates an improvement in profit margins, driven by a stable gross margin and operational efficiency enhancements [8] - Atour (ATAT US) plans to open around 500 new hotels in FY2025, aiming for a 30% year-on-year growth in hotel numbers, while closing about 60 underperforming locations [12]