Summary of the Conference Call for 深天马 Company Overview - **Company**: 深天马 (Shenzhen Tianma Microelectronics Co., Ltd.) - **Industry**: Display technology, specifically focusing on small to medium-sized displays for various applications including automotive, IT, and mobile devices Key Points and Arguments Financial Performance - In 2024, 深天马 achieved revenue of approximately 33.5 billion yuan, representing a year-on-year growth of 3.79% [3][5] - The company's gross margin improved by 6.47 percentage points, with net profit attributable to shareholders exceeding 1.4 billion yuan [3][5] - Operating cash flow reached 5.752 billion yuan, marking a 45.33% increase year-on-year, providing a solid foundation for 2025 [3][5] Business Segments - Mobile and automotive businesses each accounted for about 35% of total revenue, while professional display and IT display segments contributed 13% and 8%, respectively [3] - The automotive display market has seen significant growth, with the company holding the global number one position in pre-installed displays and instrument displays for five consecutive years, with market shares of 18.3% and 25.1% respectively [3][4] Production and Technology Advancements - The TM18 OLED production line in Xiamen has successfully delivered flagship products for multiple clients, while the TM19 line has entered mass production [6] - The company is investing in new Micro LED technology, with expectations to achieve small batch delivery capabilities by 2025 [6] Market Outlook - For 2025, the company aims to ship 100 million AMOLED screens, with specific targets of 50 million from the Wuhan production line and 40 million from the Xiamen line [10] - The demand for LTPS technology in automotive applications is expected to surge, prompting the company to shift focus towards larger-sized products [12][13] Strategic Focus - Future development will prioritize expanding domestic leadership, particularly in the automotive sector, while addressing challenges posed by LCD price fluctuations [7] - The company plans to enhance its competitive edge through the development of new technologies like Micro LED [7] Market Dynamics - The company anticipates a healthy supply-demand structure in the OLED market, with a projected 10% growth in smartphone OLED penetration in 2025 [15] - The automotive electronics segment is expected to continue outperforming industry averages, with significant growth in both international and domestic markets [20][25] Challenges and Risks - The company faces challenges from price volatility in the LCD market and the need for industry self-regulation to ensure high-quality development [18][24] - The depreciation from production lines, particularly from the Wuhan G6 plant, has increased significantly, but is expected to stabilize in the coming years [14] Additional Insights - The company has a strong customization and delivery capability in the automotive display sector, with a gross margin of approximately 19-20% [8][9] - The competitive landscape between rigid and flexible OLED screens is expected to drive technological advancements and market growth [16] Conclusion 深天马 is positioned for continued growth in the display technology sector, particularly in automotive and mobile applications, with a strong focus on innovation and market expansion. The company's financial health and strategic initiatives suggest a positive outlook for 2025 and beyond.