The Zhitong Finance App learned that Tianfeng Securities released a research report saying that Mini LED has both the high-quality performance of OLED and the affordable characteristics of LCD, and its penetration rate is expected to increase rapidly along with the cost reduction cycle, and scale effects may further feed back cost optimization as demand is released. The domestic Mini LED industry chain is perfect, and the advantages of machine manufacturing are remarkable. Chinese brands are expected to further gain market share in the global high-end TV market. It is recommended to focus on Zhaochi shares (002429.SZ) with a perfect integrated layout of the industrial chain and leading scale and technology, as well as global brands Hisense Vision (600060.SH) and TCL Electronics (01070), which benefit from the international development of Mini LED.
Tianfeng Securities's views are as follows:
The size of the global color TV market has gradually stabilized, and the share of leading domestic players has been surpassed
In the past three years, the global black electricity market has been affected by factors such as the epidemic, high inflation, and the diversion of content channels. Market capacity has shrunk, but the sales scale has basically stabilized after the adjustment. There are still structural highlights. Sales of products represented by OLEDs, mini LEDs, quantum dots, and laser TVs have expanded rapidly, and the trend of large sizes continues. In terms of brand competition, the market share of domestic brands in the global TV market is steadily increasing, thanks to the deepening position of mainland panel manufacturers and the cost-effective Mini LED path.
Mini LED product power+price optimization drives accelerated penetration, and innovative scenarios open up room for growth
Mini LED greatly improves the image accuracy and contrast of traditional LCDs through local dimming technology. The image quality performance is basically comparable to OLED, and the latter avoids the pain points of screen burning. Along with the cost optimization process, Mini LED gradually enters the accelerated penetration stage. The domestic Mini LED industry has a mature supply chain and a clear path to cost reduction. Upstream chip and midstream packaging manufacturers are actively expanding production, and downstream brands seek development through a deep integrated layout. We are optimistic that the scale effect will further feed back cost optimization after cost reduction releases demand. Based on the good display performance and high cost performance of Mini LED products, TrendForce predicts that global mini LED TV shipments will reach 24.4 million units in 2027. Assuming global TV shipments of 200 million units, the corresponding shipment penetration rate is about 12% (the penetration rate in 23 years is about 3%). While the domestic Mini LED TV market is developing rapidly, leading companies are also expected to rely on their technological advantages to enter innovative fields such as automotive, VR, and medical care, and broaden development paths.
Zhaochi Co., Ltd.: Mini LED full industry chain layout, COB has entered the harvest period
The company started in home video, TV ODM, and LED, and has now become an important partner for global consumer electronics brands and hardware manufacturers. Among the company's main business, smart display and smart home networking are the basic revenue and profit margins and cash cow business. At the same time, the company focuses on deepening the strategic layout of the entire LED industry chain and continues to make efforts in upstream chips, midstream packaging, downstream lighting and display applications. 1) The company is a leading global TV foundry company, and its market share continues to increase. According to Lotu Technology data, the company shipped 8.42 million units in the first three quarters, an increase of about 36.9% over the previous year, ranking second in the industry in shipments in the third quarter. 2) The company's chip business continues to iterate and upgrade its structure; the packaging business has leading advantages and continues to be rich in application scenarios; application-side COB is actively expanding production, and commercialization is expected to accelerate penetration. Furthermore, from the perspective of the industrial chain, the company's chips, packaging, lighting and display products are upstream, middle, and downstream of each other, which can effectively reduce intermediate links and control costs. It is expected to shift from local optimization to global optimization, and use endogenous system advantages to enhance comprehensive competitiveness.
Risk warning: Risk of Mini LED penetration falling short of expectations; risk of cost reduction in the Mini LED industry chain falling short of expectations; risk of LED production capacity falling short of expectations; risk of exchange rate fluctuations; risk of increased industry competition, etc.