Summary of Universal Display Corp FY Conference Call Industry Overview - **OLED Market Penetration**: - Smartphones: Over 60% penetration, with growth driven by premium and mid-tier models adopting OLED displays. Foldable smartphones are expected to further boost this market due to increased surface area [5][6]. - TVs: Currently at approximately 3% penetration in the overall TV market, with LG Display being a major player. Growth is anticipated as more consumers adopt OLED TVs [7]. - IT Market: Only about 5% penetration, but significant growth is expected as OEMs invest in OLED displays for tablets, laptops, and monitors [8][11]. Key Market Dynamics - **Smartphone Growth**: Continued growth is projected as more mid-tier and low-end models convert to OLED. The introduction of foldable smartphones is seen as a major opportunity for Universal Display Corp (UDC) [6][7]. - **TV Market Challenges**: The OLED TV market faces challenges due to consumer price sensitivity and competition from premium LCDs. However, the narrowing price gap between OLED and LCD TVs is expected to drive further adoption [14][15][39]. - **IT Market Momentum**: The IT market is gaining momentum with new capacity coming online, and many OEMs are planning to introduce OLED displays into their products [8][11][20]. Capacity Investments - **New Fabs**: Samsung and BOE are investing over $12 billion collectively in new 8.6 Gen capacity for the IT market, expected to come online in Q2 and Q3 of 2026. This new capacity is anticipated to provide a significant tailwind for UDC [21][22]. - **Future Capacity**: Additional investments from Visionox and China Star are expected to come online in 2027-2028, which may present revenue opportunities for UDC in the future [25][26]. Technological Developments - **Tandem Architecture**: Tandem displays, which use two emissive layers, are being adopted in IT products for better brightness and longevity. This technology is expected to increase material usage by 1.5 to 2 times compared to single-layer products [28][29]. - **Phosphorescent Blue**: The introduction of phosphorescent blue materials is projected to enhance energy efficiency by up to 25%. LG Display has showcased this technology, indicating a growing interest in high-efficiency blue materials [42][43]. Competitive Landscape - **Local Competition in China**: Increased competition from local suppliers in China is noted, but UDC maintains a strong position due to its extensive patent portfolio and ongoing partnerships with major players [55][56]. Financial Outlook - **Revenue Growth**: UDC expects growth in 2026, driven by increased demand for OLED materials, particularly in the IT market. The company is monitoring various factors, including component prices, that could impact demand [36][58]. - **Capital Allocation**: UDC has a strong cash position of approximately $1 billion and is focused on investing in IP, returning capital to shareholders, and exploring growth opportunities through acquisitions [62][63]. Conclusion - UDC is well-positioned to capitalize on the growing OLED market across smartphones, TVs, and IT products. The company is actively investing in new technologies and capacity to meet increasing demand while navigating competitive pressures and market dynamics.

Core Insights - The article highlights a significant growth in the domestic Mini LED TV market, with sales increasing by 48.1% year-on-year in Q3 2025, leading to a penetration rate of 32.9% [2]. Group 1: Global LCD TV Panel Trends - The report provides an overview of global LCD TV panel shipment trends from Q1 2022 to Q4 2025, indicating fluctuations in demand and supply dynamics [3]. - It also discusses the monthly price changes of LCD TV panels projected from October 2024 to October 2025, reflecting market pricing strategies [3]. Group 2: Domestic TV Market Sales Trends - The quarterly sales volume trends of the domestic TV market from Q1 2023 to Q3 2025 are analyzed, showcasing the overall market performance [3]. - The report details the quarterly sales revenue trends for the domestic TV market during the same period, indicating revenue growth or decline [3]. Group 3: Pricing Trends - The average price trends in the domestic TV market from April 2024 to September 2025 are examined, providing insights into pricing strategies and consumer behavior [3]. Group 4: Brand Performance - The sales volume ranking of brands in the domestic TV market for Q3 2025 is presented, along with year-on-year comparisons to assess brand competitiveness [3]. - The sales revenue ranking of brands in the domestic TV market for Q3 2025 is also included, highlighting the financial performance of leading brands [3]. Group 5: Size Segment Analysis - The report analyzes the sales volume share trends of various size segments in the domestic TV market from Q1 2023 to Q3 2025, indicating consumer preferences for different TV sizes [3]. - The average price trends for different size segments in the domestic TV market during the same period are discussed, reflecting pricing strategies across sizes [3]. Group 6: Mini LED and OLED TV Sales - The sales performance of Mini LED TVs in the domestic market from Q1 2023 to Q3 2025 is detailed, emphasizing the growth trajectory of this technology [3]. - The sales performance of OLED TVs in the domestic market during the same timeframe is also analyzed, providing a comparative view of display technologies [3].

Investment Rating - The industry rating is "Recommended" [5] Core Insights - In H1 2025, global TV shipments showed a steady performance with a year-on-year decline of 1.5%, totaling 90.8 million units, while high-end OLED TV shipments increased by 6.7% [9][10] - TCL and Hisense are maintaining their market share expansion, with TCL's global shipments reaching 13.4 million units, up 6.3% year-on-year, and Hisense's shipments at 13.1 million units, up 2.6% year-on-year [10] Summary by Sections Weekly Topic: Global TV Shipment Performance - The global TV shipment growth rate for H1 2025 showed a trend of high growth followed by a decline, with Q2 2025 shipments down by 3.5% year-on-year [9] - Mini-LED TV shipments continued to perform well, with a year-on-year increase of 82.9% in Q1 2025, and an expected annual growth of 50% to reach 11.56 million units [9] Company Announcements - Hisense reported H1 2025 revenue of 49.34 billion yuan, a year-on-year increase of 1.44%, and a net profit of 2.077 billion yuan, up 3.01% [15] Data Tracking - Raw material prices showed fluctuations, with copper prices down by 2.6% and aluminum prices down by 4.2% as of August 1, 2025 [17] - The CCFI composite index for shipping rates decreased by 2.3% as of August 1, 2025 [23]

Group 1: Market Overview - Global TV shipment volume decreased by 1.5% year-on-year in the first half of the year, totaling 90.8 million units, while shipment area increased by 2.1% to 7.22 million square meters, indicating a shift towards larger and higher-end screens [2] - The average screen size has risen to 53.7 inches, reflecting a structural change in the market towards big-screen and premium products [2] - OLED TV shipments grew by 6.7% year-on-year, reaching 2.7 million units, showcasing strong performance in a challenging market [2] Group 2: LG Electronics Performance - LG Electronics' TV business faced significant challenges, with shipments of 9.2 million units, a decline of 9% year-on-year, making it the largest drop among the top five global TV brands [2] - For Q2 2025, LG Electronics reported revenue of 20.74 trillion KRW and operating profit of 639.4 billion KRW, reflecting year-on-year declines of 4.4% and 46.6%, respectively [5] - The decline in performance was attributed to weak global market demand, increased U.S. tariffs, intensified market competition, and rising logistics costs [5] - Despite the growth in OLED TV shipments, LG Electronics has not been able to reverse the downward trend in its TV business [5][6] Group 3: Other Business Segments - LG Electronics achieved good performance in other business segments, such as Home Appliance Solutions, Vehicle Solutions, and Environmental Solutions, but the ongoing decline in TV shipments and losses in the TV business continue to exert pressure on the company [6]

Core Viewpoint - The domestic TV market in China experienced growth in both volume and price in Q1 2025, with Mini LED TV penetration reaching 25.0% [1]. Group 1: Global LCD TV Panel Shipment Trends - The report outlines the trend of global LCD TV panel shipments from Q1 2022 to Q2 2025 (E) [2]. Group 2: LCD TV Panel Price Monthly Changes - It details the monthly price changes of LCD TV panels from April 2024 to April 2025 (E) [2]. Group 3: Domestic OLED TV Sales - The sales situation of domestic OLED TVs from Q1 2023 to Q1 2025 is analyzed [2]. Group 4: Quarterly Sales Volume Trends - The report provides insights into the quarterly sales volume trends of the domestic TV market from Q1 2023 to Q1 2025 [2]. Group 5: Quarterly Sales Revenue Trends - It discusses the quarterly sales revenue trends of the domestic TV market from Q1 2023 to Q1 2025 [2]. Group 6: Monthly Average Price Trends - The report covers the monthly average price trends of the domestic TV market from January 2024 to March 2025 [2]. Group 7: Brand Sales Volume Ranking - The sales volume ranking of brands in the domestic TV market for Q1 2025 and year-on-year comparisons are presented [2]. Group 8: Brand Sales Revenue Ranking - The sales revenue ranking of brands in the domestic TV market for Q1 2025 and year-on-year comparisons are included [2]. Group 9: Sales Volume Share by Size - The report analyzes the sales volume share trends by size segments in the domestic TV market from Q1 2023 to Q1 2025 [2]. Group 10: Average Price Trends by Size - It discusses the average price trends by size segments in the domestic TV market from Q1 2023 to Q1 2025 [2]. Group 11: Mini LED TV Sales Situation - The sales situation of Mini LED TVs in the domestic market is detailed [2].