Core Viewpoint - Recent developments in the OLED industry chain have been reported in Jiangsu and Anhui, with two key projects completing the introduction and installation of critical equipment [2]. Group 1: He Yi Guang Xian Technology - He Yi Guang Xian Technology Co., Ltd. has completed the equipment installation for its new flat-panel OLED module line from March 15 to March 17, with a total of 33 units weighing approximately 480 tons [3][5]. - The new line marks a significant milestone in the company's development, aiming to provide a diverse range of OLED display products to customers [5]. - The company has achieved full production capacity and is responding to increasing order demands, with the new line being a crucial step to ensure delivery capabilities [6]. - The total investment for this project is 6 billion yuan, with a planned monthly production capacity of 7 million pieces, divided into two phases: construction starting in December 2023 and the first AMOLED product expected to be lit by August 2024 [6]. Group 2: Tian Lu Technology - Tian Lu Technology's TAC film project in Chuzhou, Anhui, has completed the entry of its first batch of equipment on March 18, with key components already in place before the Spring Festival [7]. - The project, managed by Anhui Jiguang New Materials Co., Ltd., has a total investment of 3 billion yuan and aims to establish a high-end TAC optical-grade film R&D and production base [7]. - The first phase of the project is planned to have an annual production capacity of 60 million square meters, with equipment installation and debugging expected to be completed by the second half of 2026 [7]. - The introduction of this project is significant as it aims to fill the domestic high-end TAC film capacity gap and facilitate Tian Lu Technology's transition from an optical film supplier to a core materials enterprise [8].

Business Overview - The company operates in three main business segments, leveraging its core optical film products to expand into adjacent fields, including the TAC film and reflective polarizing film projects, aiming for a second growth curve [1][4]. - Both optical films are part of domestic substitution projects addressing supply chain vulnerabilities, with TAC film primarily monopolized by Japanese suppliers and reflective polarizing film dominated by American and Japanese companies [2][4]. TAC Film Project Progress - The construction of the TAC film factory in Anhui Jiguang is progressing steadily, having obtained the construction permit in June 2025, with major equipment expected to arrive for testing in the first half of 2026 [3][8]. - Initial test results of the trial films sent to downstream manufacturers show no significant discrepancies from internal testing, indicating readiness for further development [3]. Market Dynamics - The demand for TAC film is projected to reach 1.229 billion square meters by 2025, with over 70% of panel production capacity located in mainland China [5]. - TAC film accounts for over 50% of the cost of polarizing film, making it a critical material for profitability in the polarizing film sector [5]. Competitive Landscape - The global market for TFT-grade TAC film is largely dominated by Japanese manufacturers, with Fuji Film and Konica Minolta accounting for approximately 75% of the market [5]. - The establishment of Anhui Jiguang, in collaboration with local enterprises, aims to break Japan's monopoly on TAC film production, enhancing the self-sufficiency of China's panel industry [5]. Equipment Procurement Challenges - The procurement of TAC film production equipment has faced challenges due to the need for customized machinery and the limited availability of new production lines since 2013 [7][8]. - The company has been exploring domestic suppliers to enhance the localization of equipment in future phases of the project [7]. Financial and Investment Insights - The company has undergone multiple rounds of financing, with significant support from stakeholders across the supply chain, ensuring sufficient funding for project advancement [9]. - Following recent financing, the company holds a 56.46% stake in Anhui Jiguang, with expectations to maintain over 50% for consolidation purposes [12]. Future Outlook - The first phase of the TAC film production line is expected to yield approximately 60 million square meters annually, with plans for expansion contingent on the success of the initial project [8]. - The ongoing geopolitical context has further emphasized the necessity of domestic production capabilities for TAC film, reinforcing the project's strategic importance [5].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1][7]. Core Insights - The company's main business in light guide plates is stable, with a market share of 16.70% in display light guide plates and 23.20% in notebook light guide plates for 2024, leading globally. The company offers a diverse range of light guide plate products, with sizes from 8 inches to 86 inches and thicknesses from 0.3 mm to 3 mm, continuously innovating to meet the trends of thinner, brighter, and more energy-efficient displays [4]. - The strategic layout of TAC film presents significant domestic substitution opportunities, creating a second growth curve for the company. TAC film is a core component of polarizers, accounting for nearly 60% of the cost structure. The global demand for TAC film is expected to reach 1.229 billion square meters by 2025, with a strong push for domestic production in China due to the shift of panel production capacity to the mainland [5]. - The company has introduced external strategic investment partners, deeply binding with leading downstream customers such as BOE and Sanli Film. The subsidiary Anhui Jiguang has attracted several industry and investment partners to break the foreign monopoly on TAC film, enhancing the feasibility of domestic production [6]. Financial Projections - The company is projected to achieve revenues of 621 million yuan, 638 million yuan, and 869 million yuan for the years 2025, 2026, and 2027, respectively. The net profit attributable to the parent company is expected to be 28 million yuan, 36 million yuan, and 82 million yuan for the same years [7][10]. - The earnings per share (EPS) is forecasted to be 0.28 yuan, 0.36 yuan, and 0.82 yuan for 2025, 2026, and 2027, respectively, with a significant increase in net profit growth rates projected [10][13].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1][7]. Core Insights - The company's main business in light guide plates is stable, with a market share of 16.70% in display light guide plates and 23.20% in notebook light guide plates for 2024, leading globally [4]. - The company is expanding into the TAC film market, which is essential for polarizers, with significant domestic replacement potential. The global TAC film market demand is expected to reach 1.229 billion square meters by 2025 [5]. - The company has introduced external strategic investment partners to strengthen ties with leading downstream clients such as BOE and Sanli [6]. Company Overview - Latest closing price: 47.41 yuan - Total shares: 1.10 billion, circulating shares: 0.64 billion - Total market value: 5.2 billion yuan, circulating market value: 3 billion yuan - 52-week high/low: 49.16/17.26 yuan - Debt-to-asset ratio: 20.4% - Price-to-earnings ratio: 189.64 [3]. Financial Projections - Expected revenues for 2025, 2026, and 2027 are 621 million, 638 million, and 869 million yuan respectively, with net profits of 28 million, 36 million, and 82 million yuan [7][10]. - The company anticipates a revenue growth rate of -5.05% in 2025, followed by 2.80% in 2026, and a significant increase of 36.09% in 2027 [10]. - Earnings per share (EPS) are projected to be 0.28 yuan in 2025, 0.36 yuan in 2026, and 0.82 yuan in 2027 [10].

Group 1: TAC Film Market Overview - The global market for TAC film is primarily dominated by five suppliers, with Japanese companies Fuji Film, Konica Minolta, and Rion accounting for approximately 80% of the market share [1] - The demand for TAC film is projected to reach 1.229 billion square meters by 2025, with over 70% of the panel production capacity located in mainland China [3] - TAC film constitutes over 50% of the cost of polarizer materials, making it a critical component affecting the profitability of polarizer manufacturers [3] Group 2: Project Development and Strategic Partnerships - JD.com, a leader in the panel industry, has partnered with local companies to establish Anhui Jiguang, aimed at breaking the Japanese monopoly on TAC film [3] - The necessity of the TAC film project has been reinforced by current geopolitical relations, with strong support from various industry stakeholders [3] Group 3: Progress on TAC Film Project - As of June 2025, Anhui Jiguang has obtained construction permits, and the factory construction is progressing steadily [4] - Major equipment for the TAC film production is expected to arrive and undergo testing in the first half of the year [4] - Initial test samples of the TAC film have been sent to downstream polarizer and panel manufacturers for evaluation, showing no significant discrepancies from internal testing results [4] Group 4: Equipment and Production Process - Equipment such as liquid adjustment tanks and carbon fiber rollers have already arrived on-site, with the liquid adjustment phase being critical for ensuring solution purity and stability [5]

Investment Rating - The report does not explicitly state the investment rating for Talant Optronics (Suzhou) [4]. Core Insights - Talant Optronics is positioned in the display panel industry and is developing TAC film materials as a second growth curve. The company has established a subsidiary, Anhui Jiguang New Materials, for the research and production of TAC films, which are crucial raw materials for polarizers in display panels [4][4]. - The TAC film project is progressing steadily, with investments from Talant Optronics and partners totaling 2.4 billion, 0.5 billion, and 0.4 billion respectively, indicating a strong collaborative effort to support domestic alternatives in the supply chain [4]. - The demand for TAC films is urgent, with a projected requirement of 1.229 billion square meters by 2025, as over 70% of panel production capacity is located in mainland China. The report suggests that Talant Optronics is well-positioned to benefit from the trend of import substitution in this market [4][4]. Summary by Sections Company Overview - Talant Optronics was established in 2010 and specializes in light guide plates, which are essential components of backlight modules for LCD devices. The company has seen a revenue of 297 million in the first half of 2025, a year-on-year decrease of 8.4%, primarily due to declines in revenue from desktop monitors and LCD TVs [4]. - The gross margin for the light guide plate business stands at 19.86%, reflecting a year-on-year increase of 1.35 percentage points, attributed to a downward trend in the prices of raw materials [4]. Market Dynamics - The TAC film market is dominated by suppliers such as Fujifilm, Konica Minolta, and others, with Japanese companies holding approximately 75% of the global market share. The report emphasizes the critical role of TAC films in the profitability of polarizer manufacturers, as they account for over 50% of the cost of polarizer materials [4].

Group 1: TAC Film Market Overview - The global market for TAC film is dominated by five main suppliers, with Japanese companies Fuji Film, Konica Minolta, and Rion accounting for approximately 80% of the market share [1] - The demand for TAC film is projected to reach 1.229 billion square meters by 2025, with over 70% of panel production capacity located in mainland China [3] - TAC film constitutes over 50% of the cost of polarizer film materials, significantly impacting the profitability of polarizer manufacturers [3] Group 2: Project Development and Strategic Partnerships - JD.com, a leader in the panel industry, has partnered with local companies to establish Anhui Jiguang, aimed at breaking the Japanese monopoly on TAC film [3] - The necessity of the TAC film project has been reinforced by current geopolitical relations, with strong support from various industry stakeholders [3] - As of June 2025, Anhui Jiguang has obtained construction permits, and the factory construction is progressing steadily [4] Group 3: Equipment and R&D Progress - Key equipment for TAC film production is scheduled to arrive and undergo testing in the first half of 2026 [4] - Initial test samples of TAC film have been sent to downstream polarizer and panel manufacturers for evaluation, showing no significant discrepancies from internal testing results [4] - Equipment such as liquid tanks and carbon fiber rollers have already been delivered, with the liquid adjustment phase being critical for ensuring solution purity and stability [5]

Summary of Conference Call Records Company and Industry Involvement 1. TAC Film Localization Project - The company is actively participating in the localization of TAC film, with project equipment expected to arrive in the first half of this year [1][2][4] - The TAC film market is currently dominated by Japanese companies, with Fuji Film, Konica Minolta, and Rion accounting for approximately 80% of the global market [2][3] 2. Port Crane Market - The company has significant growth potential in the port crane market, with plans to optimize market strategies to enhance sales revenue [5][6][8] - The company aims to accelerate product technology iterations and promote smart brake products to increase core competitiveness and product value [6][9] 3. Waste-to-Energy Project in Vietnam - The Hanoi waste-to-energy project has become a landmark green demonstration project under the Belt and Road Initiative, providing reliable waste treatment and green electricity since its operation began in early 2023 [10][11] - The project is set for expansion, increasing its processing capacity to 5,600 tons per day, which will enhance the company's business scale and competitiveness in Southeast Asia [11] 4. Hydrogen Energy Projects - The company is advancing two major hydrogen energy projects in Jilin and Heilongjiang, with significant progress reported in construction and equipment installation [12] - The Jilin project is expected to complete construction by the end of June 2026, with product testing scheduled for the third quarter [12] 5. Green Methanol Product Development - The company has secured its first global supply order for electric methanol, marking its entry into the international mainstream energy supply chain [13] - Ongoing negotiations with several international energy and shipping companies are expected to yield new orders, reinforcing the company's leading position in the green methanol market [13] Key Points and Arguments TAC Film Localization - The necessity of the TAC film project is underscored by current geopolitical relations, emphasizing the importance of breaking Japan's monopoly [3] Port Crane Market Potential - The company’s market share in port cranes is expected to increase due to the rising demand for smart and digital port solutions [6][8] Waste-to-Energy Project Significance - The Hanoi project serves as a model for environmental cooperation between China and Vietnam, with the expansion reflecting the Vietnamese government's recognition of the project's success [10][11] Hydrogen Energy Initiatives - The company is committed to advancing its hydrogen energy projects, which are crucial for its long-term growth strategy [12] Green Methanol Market Position - The successful entry into the green methanol market positions the company favorably against competitors, with potential for further market penetration [13] Additional Important Information - The company is focusing on the development of wet brake products for mining trucks, which are expected to contribute significantly to profit growth in the coming years [9] - The company’s strategic focus on industrial brakes and port machinery is aimed at optimizing its market presence and enhancing profitability [5][6][9]

1. Reported Industry Investment Rating - No information provided 2. Core Views of the Report - The TFT - level TAC film for polarizers is basically monopolized by Japanese manufacturers, with Fuji Film, Konica Minolta, and Rayon accounting for about 80% of the global market, and Fuji Film and Konica Minolta accounting for about 75% [23][24]. - The demand for TAC film reached 1.229 billion square meters in 2025. Over 70% of the downstream panel production capacity and about 70% of the polarizer production capacity after integration are in mainland China. TAC film accounts for over 50% of the polarizer film material cost [23]. - In 2023, BOE, Sanlipu, and Tianlu Technology jointly established Anhui Jiguang to engage in the TAC film project to break the Japanese monopoly and promote the self - controllability of the panel industry chain. The project's necessity is further strengthened under the current geopolitical situation [24]. 3. Summary According to Relevant Catalogs 3.1 Research Basic Situation - Research object: Tianlu Technology [17] - Industry: Optoelectronics [17] - Reception time: 2026 - 02 - 26 [17] - Listed company receptionist: Investor Relations Director Li Yanru [17] 3.2 Detailed Research Institutions - Institution: Fund management company - Fuguo Fund [20] 3.3 Research Institution Proportion - No information provided 3.4 Main Content Data - **Global TAC film manufacturers**: The main suppliers of TFT - level TAC film for polarizers are Fuji Film and Konica Minolta from Japan, Hyosung Chemical from South Korea, Dahui from Taiwan, China, and Rayon from Japan. Fuji Film, Konica Minolta, and Rayon together account for about 80% of the global market [23]. - **Market space and competition pattern of TAC film**: The demand for TAC film reached 1.229 billion square meters in 2025. Over 70% of the downstream panel production capacity and about 70% of the polarizer production capacity after integration are in mainland China. TAC film accounts for over 50% of the polarizer film material cost. Mainland China's TFT - level TAC film is basically imported, with Fuji Film and Konica Minolta accounting for about 75% of the global market [23][24]. - **Project progress**: Anhui Jiguang obtained the construction permit in June 2025, and the plant construction is progressing steadily. The main equipment will be installed and debugged in the first half of this year. The trial - produced film in the laboratory has been sent to downstream polarizer and panel manufacturers for testing, and the test results are consistent with Anhui Jiguang's own detection [25]. - **Equipment arrival situation**: Before the Spring Festival, the liquid - mixing tank and some carbon fiber rollers have arrived. The liquid - mixing tank is at the front end of the TAC film production process [25].

Core Viewpoint - Tianlu Technology (301045) is strategically positioning itself to break Japan's monopoly on TAC film, which is crucial for the profitability of polarizer manufacturers in the display panel industry [1] Group 1: Market Demand and Production - The demand for TAC film is projected to reach 1.229 billion square meters by 2025 according to market institution data [1] - Over 70% of the production capacity for the panel segment is located in mainland China, with a similar expectation for the polarizer segment after capacity consolidation [1] Group 2: Cost Structure and Dependency - TAC film accounts for over 50% of the cost of polarizer materials, making it a key factor influencing the profitability of polarizer companies [1] - The TFT-grade TAC film used in mainland China is primarily imported, with Japanese manufacturers Fujifilm and Konica Minolta holding approximately 75% of the global market share [1] Group 3: Strategic Initiatives - In 2023, BOE, a leader in the panel industry, partnered with domestic polarizer company Sanli Pu (002876) to establish a subsidiary, Anhui Jiguang, focused on the TAC film project [1] - This initiative aims to collaboratively break Japan's monopoly on TAC film, enhancing the self-sufficiency of China's panel industry [1] - The necessity of this project has been further emphasized by current geopolitical relations, with strong support from various industry stakeholders ensuring decisive project advancement [1]