The hottest panel has little excess profit, BOE pu

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The panel surplus profit is meager, and BOE is difficult to catch up with South Korea's OLED technology

for BOE, which first squeezed out LG display (LGD) and won the leading panel shipment in the first half of the year, it also has its own troubles. According to the semi annual report previously disclosed by BOE, its non net profit deduction was 979 million yuan, down more than 70%. At the same time, in the capital market, the market value of BOE evaporated more than 80 billion yuan in eight months, and its share price fell by more than 40%. Once a darling of the capital market, BOE once had a market capitalization of 200 billion yuan at the beginning of 2018. As of the close of September 12, its share price was 3.23 yuan, leaving a total market capitalization of only 112.7 billion yuan

the decline of market value is always closely related to performance. Faced with the decline of both performance and market value, BOE's explanation is that the overall growth of the display market is lower than expected, supply exceeds demand, and market prices are all the way down. At present, the five major mainstream markets are basically saturated, and the growth space is limited

it can be seen that the panel capacity is actually surplus. However, under such a situation, the global panel production capacity is still growing. At least this year and next, many production lines will still be put into actual production

according to data released by WitsView, in the first half of this year, BOE's panel shipments increased by 31.4% year-on-year, surpassing panel giant LGD as the world's largest panel supplier for the first time. The success of BOE is related to the 10.5 generation line put into operation at the end of last year. This production line reached the expected capacity by the second quarter of this year, which made its large-size TV panel capacity nearly quadruple month on month, and finally helped BOE beat LGD in the first half of this year. It is reported that BOE is also stepping up the construction of its second generation 10.5 line, which will further enhance its panel capacity advantage

at the same time, China Star optoelectronics, the second largest panel supplier in China, is also stepping up the construction of its first 11th generation line, which is expected to be put into operation next year, and its second 11th generation line has also been planned. After the acquisition of sharp, Hon Hai in Taiwan, China also owns a 10 generation panel production line of sharp, and is currently building a 10.5 generation line in Guangzhou, China. At present, the construction of advanced generation 10.5/11 lines by multiple panel manufacturers at the same time will undoubtedly aggravate the overcapacity problem of panels, which will inevitably lead to the continuation and even further deterioration of the decline in global panel prices that the industry is worried about since the second half of last year, and the LCD panel is likely to be in a peak period of investment and output in the next year

in addition to the overcapacity of the LCD panel itself, the replacement of the LCD panel by OLED in many fields is also an important reason to aggravate the overcapacity of the LCD panel. We passed the experiment

recently, according to Korean media reports, there was a scene in LGD headquarters where executives smashed LCD panels with goggles in front of thousands of employees. It is said that the senior executive showed his determination to transform the OLED factory on the scene, which also shows LGD's great appreciation for OLED technology. Faced with the transformation of advanced manufacturers and the growth of market demand for OLEDs, BOE is also laying out OLEDs. At the end of last year, its leading small and medium-sized OLED panel production line for the intelligent and other fields has been put into operation, its second small and medium-sized OLED panel production line is also under rapid construction, and the second generation 10.5 line also provides technical reserves for OLED panels for TV

however, things are not always the same. About 10% of the chemical products produced worldwide are transported in Antwerp. The investment scale of BOE's second generation 10.5 line has reached 46billion yuan, and the investment of the second small and medium-sized OLED panel production line has also reached 46.5 billion yuan. The total investment of the two production lines exceeds 90billion yuan. However, in 2017, which had the best performance, the net profit was only 7.568 billion yuan. It is worrying whether BOE will return to the situation of continuous losses and continuous financing in the past. Moreover, relying on financing alone will also face difficulties. Now the capital market is quite depressed, which is not conducive to raising funds in the capital market

the price of traditional LCD panels is still declining, and the demand is saturated. Small profits and quick turnover have not brought profit growth. In this context, the driving mechanism makes the two lead screws rotate synchronously through chain transmission. The new panel production line is obviously difficult to help BOE achieve substantial profit growth again. In the competition that OLED panel technology should pay attention to cleaning the contact parts, Samsung and LGD, the two major Panel Companies in South Korea, have obvious leading advantages. As a latecomer, BOE can only achieve rapid catch-up in OLED panel technology by continuously increasing investment, But the current situation seems to be difficult to achieve. At the same time, in order to resist the risks brought by panel price fluctuations, BOE is also adopting a diversified development strategy, which is bound to further squeeze its future investment in OLED technology development, and is not conducive to catching up or even surpassing South Korea's OLED technology

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