The information we have obtained shows that TFT-LCDs (thin-film-transistor liquid crystal displays) will account for nearly 90% of the entire display market in the next five years, while the upper reaches of the LCD industry are characterized by high profitability and high added value, so we expect the Chinese LCD industry. Upstream materials and other supporting industries will meet explosive growth.
According to market research company Displaysearch, in 2015, the global FPD (Flat Panel Display) industry will reach US$148 billion, and the shipment area will account for 98% of all display devices. The output value of TFT-LCD panels will reach US$133.7 billion, accounting for the FPD industry. 91%. At present, the flat panel display production lines currently under expansion or preparation are mainly concentrated in high-generation TFT-LCD and AMOLED (active matrix organic light-emitting diode panel) production lines. The production line depreciation period is more than 10 years, but the AMOLED production line scale Relatively small, this determines that the flat panel display will still be dominated by TFT-LCD in the next ten years. By 2020, TFT-LCD will still be the mainstream display technology.
Research shows that the TFT-LCD upstream material has high profitability and high added value. The TFT-LCD industry has a famous theory called the smile curve. The two ends of the smile curve face upwards. In the industrial chain, high value-added parts are reflected at both ends, namely material supply and sales. The gross profit rate can reach more than 50%. The minimum added value of manufacturing at the intermediate stage is the lowest, the gross profit rate is between -25% and 30%, and the lowest added value is obtained. The cyclical fluctuation of the industry is relatively large. Therefore, in terms of the profitability of the TFT-LCD industry chain, upstream materials companies such as glass substrates, liquid crystals, and backlights have significant characteristics of high profitability and high added value.
The survey shows that since 2009, China has entered a peak investment in large-size TFT-LCD panels. Only seven LCD panel production lines were invested or planned to be invested in 2009. The participating companies are BOE, Dragon Optical, Panda, TCL, Skyworth, LGD, and Samsung. We expect that with the rapid development and expansion of China's panel and terminal products, supporting industries such as upstream materials will usher in explosive growth opportunities.
ã€Investment Advice】
We believe that in the coming years, in terms of upstream materials, listed companies that are likely to benefit from the rapid development of the industry include: Rainbow shares, Shenzhen Textile A, Chengzhi shares, Lucky Film, Dongshan Precision and Great Wall Development. In the middle and lower reaches of the industrial chain, BOE A, TCL Group, Shen Tianma A will be the beneficiaries. The proposal focuses on Rainbow shares, Shenzhen Textile A, Chengzhi shares and Lucky Film.
According to market research company Displaysearch, in 2015, the global FPD (Flat Panel Display) industry will reach US$148 billion, and the shipment area will account for 98% of all display devices. The output value of TFT-LCD panels will reach US$133.7 billion, accounting for the FPD industry. 91%. At present, the flat panel display production lines currently under expansion or preparation are mainly concentrated in high-generation TFT-LCD and AMOLED (active matrix organic light-emitting diode panel) production lines. The production line depreciation period is more than 10 years, but the AMOLED production line scale Relatively small, this determines that the flat panel display will still be dominated by TFT-LCD in the next ten years. By 2020, TFT-LCD will still be the mainstream display technology.
Research shows that the TFT-LCD upstream material has high profitability and high added value. The TFT-LCD industry has a famous theory called the smile curve. The two ends of the smile curve face upwards. In the industrial chain, high value-added parts are reflected at both ends, namely material supply and sales. The gross profit rate can reach more than 50%. The minimum added value of manufacturing at the intermediate stage is the lowest, the gross profit rate is between -25% and 30%, and the lowest added value is obtained. The cyclical fluctuation of the industry is relatively large. Therefore, in terms of the profitability of the TFT-LCD industry chain, upstream materials companies such as glass substrates, liquid crystals, and backlights have significant characteristics of high profitability and high added value.
The survey shows that since 2009, China has entered a peak investment in large-size TFT-LCD panels. Only seven LCD panel production lines were invested or planned to be invested in 2009. The participating companies are BOE, Dragon Optical, Panda, TCL, Skyworth, LGD, and Samsung. We expect that with the rapid development and expansion of China's panel and terminal products, supporting industries such as upstream materials will usher in explosive growth opportunities.
ã€Investment Advice】
We believe that in the coming years, in terms of upstream materials, listed companies that are likely to benefit from the rapid development of the industry include: Rainbow shares, Shenzhen Textile A, Chengzhi shares, Lucky Film, Dongshan Precision and Great Wall Development. In the middle and lower reaches of the industrial chain, BOE A, TCL Group, Shen Tianma A will be the beneficiaries. The proposal focuses on Rainbow shares, Shenzhen Textile A, Chengzhi shares and Lucky Film.
Blue Sea Lighting Co., Limited , http://www.gz-led-light.com