Core Insights - The "Double京 Empowerment Plan" marks a successful three-year collaboration between JD.com and BOE, integrating consumer insights with advanced display technology to reshape the value chain in the display industry [1][3][9] Group 1: Collaboration and Innovation - The partnership is characterized as a strong mutual collaboration, leveraging JD.com's consumer understanding and BOE's display technology expertise to enhance the entire industry chain [3][9] - A joint research institute was established to focus on consumer visual experiences, leading to the successful implementation of the "S+ Display Certification Standard" on JD.com, which has become a key reference for consumer purchasing decisions [3][5] - The introduction of the first online immersive "BOE Technology Brand JD Self-operated Flagship Store" exemplifies a new B2B2C value delivery model, showcasing products powered by BOE's display technologies [4][5] Group 2: Market Performance and Trends - The collaboration has resulted in the successful launch of several high-demand display products, with significant sales growth during key shopping events, such as a threefold increase in sales of 240Hz and above ultra-high refresh rate monitors [5][6] - The partnership has effectively driven the popularity of professional and personalized products, guiding consumer value upgrades and validating the resource integration model [6][9] Group 3: Ecosystem Development - The "Best of Esports High-Level Alliance" was initiated to create a comprehensive esports ecosystem, attracting numerous leading global brands and focusing on enhancing player experiences [4][6] - The "100-inch Big Screen Three Truths Commitment" was announced, emphasizing quality, experience, and service, aiming to provide consumers with the ultimate large-screen experience [8] - A new "High-Value Ecological Industry Alliance" was formed, bringing together top companies to drive technological advancement, ecological collaboration, and sustainable development in the display industry [8][9]

Group 1 - The panel market is experiencing a temporary decline in TV panel prices due to reduced demand and adjustments in production rates, with expectations for stabilization in the third quarter [1][2] - In June, TV panel demand weakened, leading to price drops of $1 for 43-inch, 50-inch, and 55-inch panels, and $1 to $2 for 65-inch and 75-inch panels [1] - The second quarter saw a decrease in production rates among major manufacturers, with TCL reporting a drop in utilization rates below 85% due to reduced orders from TV brands [1] Group 2 - Industry experts anticipate a rebound in TV panel prices in the third quarter, driven by seasonal demand from events like Black Friday and Diwali, as well as domestic shopping festivals [2] - The overall TV panel shipment volume is expected to increase by 3% to 4% in the third quarter compared to the second quarter, as inventory levels become healthier [2] - The gaming monitor market is projected to grow by 34% year-on-year, with high-end gaming displays seeing a significant increase in shipments [5] Group 3 - The trend towards high-end gaming monitors continues, with a 71.5% increase in shipments of 4K gaming displays in the first quarter, surpassing the overall market growth [5] - AI applications are raising new requirements for display technology, particularly in terms of power consumption, which is critical for enhancing device performance without compromising battery life [5] - Technologies related to low power consumption, such as dynamic partitioning and oxide backplane technology, are expected to evolve in response to the demands of AI-driven consumer products [5]

Investment Rating - The investment rating for the company is "Buy" [9] Core Views - The company's television ODM and smart interactive performance continue to show steady growth, with optimism regarding the growth potential from AI-enabled innovations and the expansion of its own brand overseas [5] - Revenue and profit forecasts for 2025-2027 are projected at 17.6 billion, 19.9 billion, and 22.0 billion yuan respectively, with year-on-year growth rates of +13%, +13%, and +11% [5] - The expected net profit attributable to the parent company for the same period is 1.0 billion, 1.2 billion, and 1.4 billion yuan, with year-on-year growth rates of +17%, +19%, and +17% [5] Revenue Analysis - In Q1, the company reported revenue of 3.142 billion yuan, a year-on-year increase of 10.8%, and a net profit attributable to the parent company of 215 million yuan, up 15.8% year-on-year [9] - The smart TV segment saw a revenue increase of 6% year-on-year, with volume and price changes of +31% and -19% respectively, attributed to a strategy of gaining market share through price adjustments [9] - The smart interactive segment experienced a 10% year-on-year revenue increase, driven by a recovery in demand, particularly in professional displays and gaming screens [9] - Innovative products achieved a remarkable 50% year-on-year revenue growth, with significant contributions from the company's own brands [9] Profitability Analysis - The gross margin for Q1 was 13.4%, reflecting a 0.4 percentage point increase year-on-year, primarily due to improved product mix and stable panel prices [9] - The net profit margin for Q1 improved by 0.3 percentage points year-on-year, with a notable decrease in various expense ratios, except for brand-building investments [9] - The company expects to maintain a positive trend in profitability, with net profit margins projected to improve gradually over the forecast period [10]