The hottest OLED industrialization process acceler

2022-08-25
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OLED industrialization accelerates, and production capacity is significantly concentrated in mainland China

Abstract: Recently, OLED U.S. stock performance and share price have both soared. Universal display, an American technology star company specializing in OLED display materials, announced its beautiful first quarter results. In the first quarter, the company achieved a revenue of $55.6 million and a net profit of $10.4 million, an increase of 87% and 447% respectively compared with the same period last year when establishing a batch of quality benchmarks and brands

recent OLED US stock performance and share price have both soared. Universal display, an American technology star company specializing in OLED display materials, announced its beautiful first quarter results. In the first quarter, the company achieved a revenue of $55.6 million and a net profit of $10.4 million, an increase of 87% and 447% respectively over the same period last year

public information shows that the largest customer is samsungdisplay, the global leader in OLED panels, and it has more than 4200 OLED related patents and applications. The unexpected quarterly report ignited the enthusiasm of the capital market for the OLED industry. The company's share price soared 24% on the day after the results were announced, breaking the $100 mark. In the recent year, the share price has doubled, and the total market value has exceeded $5billion

Zeng Mingwei, a researcher of Xingquan fund, said that the stock price performance of this company, which controls OLED cutting-edge materials technology, is basically a barometer of the OLED industry, revealing the rise of an industry. Some securities companies believe that since the second half of 2017, the global OLED industry has faced a major inflection point. The release of iphone8 and the collective expansion of panel capacity will drive the rapid outbreak of the OLED industry chain

it is understood that OLED is the abbreviation of organic light emitting diode, which is a new display technology different from liquid crystal screen. Its most prominent feature is ultra-thin and flexible curved surface. At the same time, it also has many advantages, such as rich color, high contrast, fast response speed, low power consumption and so on. The emergence of fatigue testing machine has shortened the time of experiment, so it has attracted much attention since it came out. The industry regards OLED as the next generation display technology that is likely to replace the current mainstream LCD panel

"The first breakthrough is the small-size OLED display technology developed by Samsung. Its production cost even fell below the high-end LCD panel in 2016, and the subsequent rapid replacement is logical and unstoppable. In addition to Samsung taking the lead in configuring OLED screens in most models, other domestic models such as Huawei mate9, Hongmi pro, oppor9, vivo player 5 have begun to use OLED screens, and apple is likely to start using OLED screens in iphone8." Zeng Mingwei said. According to IHS, a consulting firm, OLED screen shipments reached 385million in 2016, and the penetration rate rose rapidly from 14% to 26% in just two years. Samsung, the pioneer of OLED technology, then occupied more than 90% of the small-size OLED screen market

Zeng Mingwei pointed out that at present, the application of OLED panels in large-scale fields such as television lags behind. Due to technical reasons, large and small OLED screens actually use different technical routes. The problem of low yield and high cost has also plagued large screen manufacturers for a long time. At present, LG in South Korea is the leader of large-size OLED panels, and the recent situation has also shown optimistic prospects. LG said that the yield of its large-size OLED panels has reached more than 80%, and the core technical difficulties are being gradually overcome. The most intuitive feeling is that the price of 55 inch OLED TV is close to the level of 10000 yuan. Many domestic mainstream TV manufacturers have begun to bet on OLED TV as the focus of the future, and it is expected that the proportion of OLED TV will follow suit and grow rapidly

Huatai Securities believes that major global smart brands represented by Apple have taken OLED screens as a consensus, and the demand for OLED screens will increase in large quantities. Samsung, LG and other Korean panel manufacturers have significantly reduced the production capacity of small and medium-sized LCD panels and shifted their focus to the OLED field. The OLED supply gap will continue. OLED production lines of domestic panel manufacturers will release capacity from the end of 2017 to 2018 to make up for the supply gap, with great import substitution potential

domestic enterprises are facing double opportunities

"just as the LCD screen replaces the thick CRT display, there is no doubt that the quality passing technology is the same, the rise of OLED will also bring impact, but this time it may be milder." Zeng Mingwei pointed out that the backlight module of LCD panel bears the brunt. Backlight modules account for 20% - 30% of the cost of small and medium-sized LCD panels, and 50% of large-size LCD panels. The global market size is about US $18billion. Because the traditional LCD panel must use an external backlight, and OLED is a self luminous technology, there is no need for backlight module. If OLED replaces LCD in a large number, it will form a strong impact on the backlight module, including the reflective film, brightening film, diffusion film and other optical films widely used in the backlight module

secondly, liquid crystal materials are impacted. Traditional liquid crystal panels use liquid crystal molecules as switches to control whether light passes. Due to the change of light-emitting principle, liquid crystal materials are no longer needed for OLED panels. In addition, OLED is also bad for two other important products. One is polarizer. Traditional LCD panels need two layers of polarizer to filter light, while OLED panels use slightly different polarizers, and only one layer is required in dosage. The other is glass substrate. Firstly, the technical difficulty of glass substrate meeting the requirements of OLED increases greatly. Secondly, the application prospect of flexible substrate in OLED is broad, and glass will no longer be the only panel carrier. Therefore, in terms of quantity, the use of polarizers and glass substrates will be reduced

finally, in the core panel manufacturing link, the popularity of OLED will also have an impact on the traditional LCD panel manufacturers whose transformation is not smooth. At present, Samsung and LG of South Korea have taken the lead in the field of OLED panels, accounting for more than 90% of the market share. Domestic panel enterprises are catching up one after another. For example, BOE Chengdu G6 production line has just been lit up recently, Mianyang G6 production line of the same scale has been started, and panel manufacturers such as Huaxing optoelectronics, shentianma, Guoxian optoelectronics, and Hehui optoelectronics are also actively laying out corresponding OLED production lines

Haitong Securities believes that according to the recent performance data disclosed by overseas companies in the OLED industry chain, the industrialization process of OLED has accelerated, and the leading companies in the industry chain have begun to realize their performance, with a significant increase in shipments. In addition, according to statistical data, there are currently 15 OLED production lines planned and under construction, including 8 in mainland China, with a total investment of nearly 300 billion yuan. OLED production capacity is obviously concentrated in mainland China. Compared with the LCD industry, which has taken more than ten years to catch up in China, mainland China has been in a more favorable position in the competition among the three countries and four places of OLED from the beginning, and domestic manufacturers are expected to win the initiative and voice

Shenwan Hongyuan said that UDC's performance was better than expected, which confirms from the side that the industrialization process of OLED has been significantly accelerated, and the benefits of domestic OLED related companies will lag behind overseas companies. At present, it is in the stage of strategic layout. According to the feedback of industrial chain research, the shipments of domestic OLED material suppliers such as Wanrun and Puyang Huicheng improved significantly in the first quarter. At the same time, it believes that domestic OLED material companies will gradually extend the industrial chain to monomer links with greater value and higher profit margin. In the future, they will use electromagnetic shielding materials and solutions: components made of Ultramid polyamide (PA) and elastolit polyurethane (PU) can achieve electromagnetic shielding performance, facing the double opportunities of industry demand growth and localization rate improvement

relevant reports show that by the end of 2020, the AMOLED market is expected to reach $67billion, and the compound annual growth rate will exceed 45%; It is estimated that the market penetration rate of AMOLED panels will reach 27% in 2017 and 50% in 2020

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