Core Insights - The new display industry has become a focal point in global technology competition, with increasing penetration in flexible, foldable displays, and AI glasses [2] - Chinese display panel manufacturers have achieved nearly 50% of the global OLED market share in Q2 this year, marking a historical high [2][6] - TCL's investment in the world's first 8.6-generation printed OLED production line in Guangzhou is expected to significantly enhance China's position in the new display industry [3][8] Industry Developments - Major cities like Guangzhou, Hefei, and Beijing are emerging as winners in the new display industry, with TCL's T8 project set to commence in November with an investment of approximately 29.5 billion yuan [3][10] - The competition among leading panel manufacturers is increasingly focused on high-end display technologies like OLED, with Samsung and LG Display shutting down LCD factories to pivot towards OLED [4] - The investment in the T8 project is seen as a critical move for Guangzhou to develop a high-end display industry and to address long-standing issues of high costs and low yield in medium-sized OLED production [8][10] Market Trends - The IT device OLED market is experiencing a "gold rush," prompting accelerated construction and mass production of display production lines, with investments exceeding 50 billion yuan in the first half of the year [5] - Major Chinese panel manufacturers, including BOE and Visionox, have announced investments in 8.6-generation OLED production lines, totaling 63 billion yuan and 55 billion yuan respectively [6] - The T8 project aims to process approximately 22,500 glass substrates monthly, positioning China as a leader in high-generation AMOLED technology [8] Future Outlook - The T8 project is expected to achieve mass production between 2027 and 2028, coinciding with a surge in demand for medium-sized OLEDs, thereby enhancing Guangzhou's display industry ecosystem [12] - The display industry's future will involve deeper integration with various sectors, moving beyond traditional screens to applications like flexible displays and smart glasses [13][14] - Guangzhou's strategy to become a "world display capital" involves attracting major projects and fostering industry clusters, with a focus on technological innovation and market competitiveness [15][16]

溅射机是一种物理气相沉积（PVD）设备，用于在真空环境下将金属或其他材料分解成原子级，随 后在基板上形成薄膜。该设备适用于在Mini和Micro LED芯片所用的BP（背板）上构建电路。BP 作为LED器件的载体，能够精准传输并控制各LED单元独立发光的电信号。其中，Mini LED用的 BP通常集成于背光模组（BLU）中，实现对多个背光区域亮度进行独立调节的局部调光功能；而 Micro LED用的BP则可分别精确控制每个LED单元。 近日，必联网披露信息显示，韩国爱发科（ULVAC）已中标鄂尔多斯市源盛光电有限责任公司 （下文简称"源盛光电"）MLED BP设备更新及技术改造项目，将为该公司供应一台溅射机。 资料显示，源盛光电为 京东方旗下 全资 子公司，主要负责运营位于内蒙古的B6工厂 。该工厂于 2013年正式投入运营，具备生产5.5代LCD与刚性OLED的能力。 其中，工厂产出的LCD面板主 要应用于车载显示及医疗设备领域，OLED产品则聚焦移动设备市场。 | | 一般的生 | | --- | --- | | 8:30-9:30 | 签到 | | 9:30-9:35 | 开幕致辞 | | | Tren ...

Core Viewpoint - The global display panel industry is experiencing a shift from "scale expansion" to "value restructuring," with Chinese manufacturers gaining market share and profitability [2][4]. Revenue and Market Share - In the first half of 2025, global panel manufacturers' revenue reached approximately $56.2 billion, remaining stable year-on-year, with Chinese manufacturers surpassing 50% market share for the first time [2]. - Chinese mainland panel manufacturers generated about $29.3 billion in revenue, a year-on-year increase of approximately 7%, capturing around 52.1% of the global market share, up 3.3 percentage points [2]. - Korean panel manufacturers saw a revenue decline of 9.5%, with their market share dropping to 30%, down 3.2 percentage points [2]. - Taiwanese panel manufacturers experienced a revenue increase of 4.4%, holding a market share of 13.2%, up 0.6 percentage points [2]. - Japanese panel manufacturers faced a revenue decline of 16.7%, with their market share decreasing to 3.5%, down 0.7 percentage points [2]. Company Performance - BOE Technology Group led the revenue rankings with 101.28 billion yuan, a year-on-year growth of 8.45% [3]. - TCL Huaxing followed with 50.43 billion yuan in revenue, a year-on-year increase of 14.4%, narrowing the revenue gap with Samsung Display and LG Display [3]. - Samsung Display remains the leader in operating profit, but the gap with Chinese manufacturers is closing [3]. - TCL Huaxing reported a net profit of 4.32 billion yuan, up 74% year-on-year, while BOE's net profit was 3.247 billion yuan, a 42.15% increase [3]. - Other companies like AUO, Innolux, Tianma, and Huike reported revenues above $2 billion, but their operating profits were below $100 million [3]. Industry Trends - The display panel industry is transitioning towards high-value products such as Mini LED, OLED, and AI applications, which are expected to drive structural growth in the Chinese mainland display panel market in the second half of 2025 [4][5]. - TCL Technology indicated that demand for TV panel inventory is expected to recover in the third quarter, with the acquisition of LGD's Guangzhou LCD production line anticipated to become a significant profit source [4]. - BOE stated that the global economic slowdown and price declines are compressing profit margins, prompting the company to enhance AI applications and advance its "screen IoT" strategy [4].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for the stock price in the next six months [4]. Core Insights - The company reported a revenue of 101.28 billion yuan for H1 2025, representing an 8.45% year-over-year increase, and a net profit of 3.25 billion yuan, up 42.15% year-over-year [1][2]. - The company's overall gross margin for H1 2025 was 14.41%, a decrease of 1.39 percentage points compared to the previous year [1]. - The company is expected to benefit from a recovery in the LCD market and an increase in demand for OLED products, particularly in the second half of 2025 [2]. Financial Performance Summary - For H1 2025, the company achieved a net cash flow from operating activities of 22.736 billion yuan, down 8.61% year-over-year [1]. - The company’s LCD TV panel shipments reached 33.2 million units in H1 2025, a 17% increase year-over-year, while the global LCD TV panel shipments grew by 2% [1]. - The flexible OLED shipments were approximately 71 million units in H1 2025, marking a 10.3% year-over-year increase, with a market share of 23.8% [2]. Future Projections - The company is projected to achieve revenues of 222.22 billion yuan, 244.37 billion yuan, and 268.51 billion yuan for the years 2025, 2026, and 2027, respectively [2]. - The expected net profits for the same years are 8.50 billion yuan, 12.35 billion yuan, and 14.95 billion yuan, with corresponding P/E ratios of 18.09, 12.45, and 10.29 [2].

Core Viewpoint - The article provides an in-depth analysis of the materials used in display panels, focusing on the evolution from LCD to OLED and Micro-LED technologies, highlighting the complexities of material science and engineering involved in their production [2][46]. LCD Panel Material System - LCD technology operates by using backlight and liquid crystal gates to produce images, structured into backlight modules (BLU) and liquid crystal cells (LC Cell) [4]. - The backlight module includes LED chips made from sapphire or silicon substrates, with GaN-based multi-quantum well structures, and uses gold and silver for electrical connections [6]. - The liquid crystal cell consists of various layers including glass substrates, gate electrodes, and pixel electrodes, with materials like a-Si, IGZO, and ITO being critical for performance [10][11]. OLED Panel Material System - OLED technology is characterized by self-emissive pixels, with a material system focused on energy level matching and exciton management [23]. - Key components include high-temperature resistant glass substrates, LTPS or IGZO for the TFT array, and various organic materials for the emission layers [24][26]. - The encapsulation layer is crucial for protecting the organic materials from moisture and oxygen, utilizing both rigid and thin-film packaging techniques [30]. Micro-LED Panel Material System - Micro-LED technology utilizes miniaturized LED chips as individual light-emitting pixels, offering advantages like high brightness and low power consumption [32]. - The material system involves advanced semiconductor epitaxy, mass transfer, and chip bonding technologies [33]. - Key materials include sapphire or silicon substrates, n-type and p-type layers, and quantum well structures for light emission [34]. Trends in Display Panel Materials - The display panel industry is transitioning from LCD to advanced technologies like OLED and Micro-LED, with a focus on high-end materials such as flexible OLED substrates and Micro-LED mass transfer materials [46]. - There is a growing demand for diverse applications, particularly in automotive displays and AR/VR technologies, which require high-performance materials [46]. - Localization of supply chains is becoming essential, with a push for domestic production of core functional materials to reduce reliance on foreign suppliers [47]. Investment Logic in Panel Materials - Investment opportunities lie in capturing breakthroughs in high-barrier, high-growth segments of the panel materials market, particularly in domestic replacements [49]. - Focus areas include OLED red/green host materials, precision metal mask manufacturing, and core process materials for Micro-LED technologies [50]. - Companies achieving breakthroughs in these areas are expected to gain strong customer loyalty and pricing power, benefiting from the domestic replacement trend [51].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 5.76 CNY [6][4]. Core Insights - The company reported a revenue of 101.3 billion CNY for 1H25, representing an 8% year-over-year increase, with a net profit of 3.25 billion CNY, up 42% year-over-year [1]. - The LCD business is expected to improve in 3Q25 due to the upcoming consumer electronics peak season, which will enhance the supply-demand balance and potentially restore ASPs [2]. - The OLED business is also anticipated to see improvements in shipment structure and profitability in 3Q25, driven by new orders from major North American clients [3]. Summary by Sections Financial Performance - In 1H25, the company achieved a revenue of 1,013 million CNY, with a gross margin of 14.4% and a net profit of 32.5 million CNY [1]. - For 2Q25, the revenue was 507 million CNY, with a gross margin of 13.0%, reflecting a decline due to reduced demand for LCD panels [1]. LCD Business Outlook - The average price of large-size LCD panels decreased by 3.2% year-over-year in 2Q25, impacting the company's profitability [2]. - The report forecasts a recovery in the LCD business in 3Q25 as clients prepare for the consumer electronics peak season [2]. OLED Business Outlook - The OLED segment faced challenges in 1H25 due to a deteriorating shipment structure and price competition [3]. - Anticipated improvements in 3Q25 are linked to new orders from major clients and the expiration of depreciation pressure on production lines [3]. Valuation Metrics - The target price of 5.76 CNY is based on a price-to-book ratio of 1.52x for 2025, which is above the average of comparable companies [4]. - The current stock price corresponds to a 1.11x price-to-book ratio, indicating a historically low valuation level [4].

Core Insights - BOE successfully supplied 43 million panels for the iPhone 16 standard model last year and is expected to supply around 5 million panels for the iPhone 17 Pro in 2025, bringing total shipments to 45-50 million [2] - Apple’s total iPhone panel shipments exceeded 230 million last year, with Samsung and LG Display capturing the remaining market share after BOE [2] - UBI Research predicts that BOE, Samsung, and LG Display will remain the core panel suppliers for Apple, with competition among these three companies becoming a significant variable in the global smartphone panel market [2][3] Company Performance - Samsung Display shipped 63.8 million panels for the iPhone 16 series, with total iPhone panel shipments reaching 124 million. It is expected to ship 78 million panels for the iPhone 17 series this year [3] - LG Display shipped 42 million panels for the iPhone 16 series, with total shipments of 67.42 million. Projections indicate an increase to 45.6 million and 75.1 million for the iPhone 17 series [3] - BOE's entry into the iPhone 17 Pro panel supply chain marks a significant milestone, as it has been increasing its shipment volume and market share since it began supplying panels for the iPhone 12 [4] Market Dynamics - The competition for iPhone panel orders has intensified, transitioning from a two-player market (Samsung and LG) to a three-player market with the inclusion of BOE [2][4] - The ongoing patent disputes between BOE and Samsung highlight the competitive landscape, with both companies engaging in legal battles over OLED technology [6][7] - If the ITC's preliminary ruling against BOE is upheld, it could significantly impact both BOE and Apple, forcing Apple to shift its supply chain [7] Future Outlook - UBI Research forecasts that by the first half of 2025, BOE will supply approximately 22.7% of OLED panels for iPhones, slightly surpassing LG Display's 21.3% [7] - The global AMOLED smartphone panel shipment is projected to reach 420 million units in the first half of 2025, with Chinese manufacturers, including BOE, accounting for 51.7% of the market share [7] - Despite fierce competition, there remains potential for collaboration, as BOE and Samsung are reportedly discussing partnerships for high-end display panels [8]

Core Viewpoint - LG Display has seen a significant increase in the average selling price of its panel products, surpassing $1000 for the first time in over a year, primarily due to the suspension of lower-priced LCD panel sales [1][2]. Group 1: Pricing and Market Share - In Q2, LG Display's average panel price exceeded $1000, marking a notable recovery in pricing [1]. - The company's market share in the global large-sized panel segment was 12.9% in the first half of the year, down from 15.7% in the same period of 2024 [1]. Group 2: Strategic Focus and R&D Investment - Chinese manufacturers are increasing investments to expand their share in the LCD panel market, prompting Korean companies to focus on OLED panel development [2]. - LG Display plans to allocate 10.4% of its sales revenue to OLED technology research and development in the first half of 2025, up from 8.4% in the previous year [2]. - The company is gradually exiting the liquid crystal television business and shifting towards an OLED-centric business structure, with OLED products accounting for 56% of total revenue in Q2, a 4% increase year-on-year [2]. Group 3: Future Outlook - The CFO of LG Display has indicated that the company's performance is expected to rebound significantly in the second half of the year as the scale of the OLED business expands [2].

Group 1 - The semiconductor industry is experiencing a comprehensive rebound, driven by a triple resonance of macro policy cycles, inventory cycles, and AI innovation cycles, leading to valuation expansion [1] - TSMC has raised its annual revenue growth forecast from 25% to 30%, indicating strong ongoing demand for AI and a moderate recovery in non-AI demand [1] - The storage technology sector is at a critical juncture, with DDR6 expected to complete certification by 2026, significantly enhancing bandwidth and channel count [1] Group 2 - Google has increased its full-year capital expenditure to $85 billion, reflecting strong demand for AI infrastructure [1] - There is a positive feedback loop between AI applications and computing infrastructure, with Google AI search monthly active users surpassing 2 billion [1] - LCD panel prices are stabilizing overall, with a slight decline in 65-inch products, indicating a reshuffling of the competitive landscape in the industry [1] Group 3 - The Chip ETF (512760) tracks the China Semiconductor Index (990001), which focuses on the Chinese semiconductor industry chain, selecting relevant listed companies from design, manufacturing, to packaging and testing [1] - The index constituents exhibit high technical content and growth potential, reflecting a distinct technology innovation style in asset allocation [1]

Group 1: LCD Market Insights - The LCD industry is adopting a "demand-driven production" strategy, adjusting production rates based on market demand fluctuations [1] - In Q1 2025, the average utilization rate of the LCD industry exceeded 80%, but it decreased in Q2 due to a drop in demand [5] - As of July, prices for certain LCD TV sizes have slightly decreased, while prices for MNT and NB panels remain stable [2] Group 2: AMOLED Business Development - The company has established a strong presence in the flexible AMOLED market, covering major top smartphone brands and increasing the proportion of high-end products like LTPO and foldable displays [3] - The 8.6 generation AMOLED production line in Chengdu began equipment installation four months ahead of schedule, transitioning from construction to operational phase [4] Group 3: Financial and Depreciation Outlook - The company anticipates a depreciation expense of approximately RMB 38 billion in 2024, with an increase expected compared to 2023 due to the completion of several production lines [6][7] - The company plans to distribute at least 35% of the net profit attributable to shareholders as cash dividends annually from 2025 to 2027, with a minimum of RMB 1.5 billion allocated for share buybacks [8] Group 4: Future Capital Expenditure - Future capital expenditures will focus on the semiconductor display business and will include new projects, completion payments for existing projects, and maintenance of current production lines [9]