Core Insights - The electronic shelf label (ESL) market is experiencing explosive growth driven by the digital transformation of the global retail sector, with significant contributions from major retailers like Walmart [1] - E Ink Holdings, a leader in electronic paper technology, anticipates record revenue and profit by 2026, reflecting confidence in the growth of its ESL business [1] - Tian De Yu (688252.SH), a key supplier in the ESL supply chain, is well-positioned to benefit from the surge in demand for electronic paper driver chips [1] Market Growth - The shipment volume of electronic shelf labels is projected to increase from approximately 360-370 million units in 2024 to 510-520 million units in 2025, indicating a strong growth trend [1] - The acceleration of ESL adoption is influenced by retail giants' initiatives, tariff policies, and labor shortages, leading to a reduced investment return cycle of 12-18 months [1] - The European and UK markets are also experiencing robust demand, driven by equipment upgrades and new customer acquisitions [1] Technological Advancements - The electronic shelf label technology is evolving from monochrome to multicolor and from simple displays to smart interactive features, with Tian De Yu leading the way in technological deployment [2] - The company has successfully launched a full range of four-color electronic paper driver ICs, entering the smart retail and IoT application markets [2] - Tian De Yu's four-color electronic shelf labels have achieved mass production and are becoming mainstream, with ongoing development of multicolor products to meet diverse customer needs [2] Policy and Market Environment - The 20th National Congress of the Communist Party of China emphasized the importance of advancing digital China, with retail digitalization being a key area benefiting from both policy and market support [2] - As a core hardware component of smart retail, the market space for electronic shelf labels is expected to continue expanding, with Tian De Yu poised for performance and market share breakthroughs during this high-growth cycle [2]