TIANMA(SZ:000050)2022-12-08 03:04Product Structure and Market Focus - The company has been optimizing its product structure since 2013, focusing on mid-to-high-end products and high value-added products, primarily in the consumer sector with smartphones as the main product line [2] - In 2013, the company mainly produced WVGA and qHD products, shifting to HD products in 2014, and expects to have more FHD products in 2015 [2] - The specialized display market encompasses approximately 30 sub-markets, with a focus on automotive, industrial control, medical, HMI (Human-Machine Interface), and financial POST machines [3] Profitability Comparison - Static analysis shows that specialized display products have higher profit margins than consumer products due to higher market entry barriers, reliability, and quality requirements [3] - Dynamic analysis indicates that if the company can align with mainstream product trends and market demands, consumer products can also achieve significant profits, especially given the large market demand for smartphones [3] Automotive Sector Insights - The company has nearly 20 years of experience in the automotive sector, with increasing trends in colorization and larger screens [3] - The growth of the automotive market, along with the rise of smart and connected vehicles, is expected to drive significant growth in the company's specialized display business [3] - The company supplies automotive displays to global leading automotive electronics manufacturers through instrument assembly suppliers [3] Competitive Advantages - The company has over 30 years of experience in the small and medium-sized display sector, providing advantages in management, technology, product quality, and pricing compared to foreign competitors [3] - The company is closer to customers in the domestic market, allowing for faster response times and long-term supply guarantees [3] Strategic Goals and Future Developments - The company aims to become a leading player in the global small and medium-sized display sector, with plans to expand cooperation with major clients like Apple and Xiaomi based on market trends and customer needs [4] - In 2014, the company announced investments in two new LTPS production lines to enhance market penetration and customer coverage [4] - The company initiated the first domestic AM-OLED pilot line in 2010, with plans for mass production and a new production line expected to be completed by the end of 2015 [4][5] Government Support and Investment - The government is increasingly supporting new display technologies, with the flat panel display industry being part of the national strategic emerging industries development plan [5] - The investment amount for the Wuhan G6 LTPS project is 12 billion RMB, with a planned capacity of 30,000 sheets of 6th generation LTPS TFT glass substrates per month [5]