Core Viewpoint - The domestic display industry is continuously upgrading towards high-end fields, driven by policy support and technological iteration, leading to significant growth in the upstream equipment market [2] Group 1: Market Performance - In Q1 2025, BOE's revenue reached 50.6 billion yuan, a year-on-year increase of 10.3%, with net profit rising 64.1% to 1.61 billion yuan [3] - TCL Technology reported a revenue of 40.1 billion yuan, with net profit soaring 322% to 1.01 billion yuan in the same period [3] Group 2: Capacity and Production - By 2024, Chinese manufacturers' LCD capacity accounted for nearly 70% of the global total, making China the largest LCD producer [4] - Chinese manufacturers' OLED capacity reached nearly 30% of the global total in 2024, with ongoing expansions in OLED production lines [4] Group 3: Investment in Equipment - Equipment investment in panel production lines can account for up to 80% of total project costs, with BOE's G8.6 AMOLED project costing 63 billion yuan, of which over 50 billion yuan was for equipment [5][6] - The continuous investment in production lines and equipment is providing substantial market demand for the upstream equipment industry, establishing a solid foundation for long-term growth [6] Group 4: Domestic Equipment Development - Domestic display process equipment has gradually advanced from non-critical areas, achieving over 85% localization in the Module segment [8] - In the Cell segment, localization rates are below 50%, while the Array segment remains below 20% due to its complexity and high investment costs [11][12] Group 5: Competitive Landscape - Domestic companies like Zhongdao Optoelectronics have captured over 70% of the Array AOI market share in 2024, significantly reducing the market share of foreign competitors like Orbotech [17] - The shift towards domestic equipment has been accelerated by the emphasis on supply chain security amid geopolitical tensions [15][16] Group 6: Future Outlook - The display industry is expected to continue its growth trajectory, with a focus on semiconductor detection as a new area for domestic equipment manufacturers [19] - The global TFT-LCD and AMOLED panel market value is projected to reach $120 billion in 2024, with Chinese manufacturers accounting for approximately $57.5 billion, representing 48% of the global market share [19]