The Zhitong Finance App learned that China Galaxy Securities released a research report saying that the panel industry has entered the traditional peak sales season, and demand is boosted. At the same time, the supply-side competition pattern has improved, and the overall supply and demand situation is gradually improving. The price rebound trend in some segments in the panel is clear. The industry will usher in structured investment opportunities. It is recommended to focus on large LCD & OLED related companies: BOE A (000725.SZ); it is recommended to focus on large LCD related companies: Rainbow (600707.SH); it is recommended to focus on OLED-related companies: Vicente (002387.SZ), Shentianma A (000050.SZ), and TCL Technology (000100.SZ).
The main views of China Galaxy Securities are as follows:
Panel price tracking:
March to April 2024, 1) Smartphone & Tablet panel prices: Smartphone panels continue to maintain a differentiated trend. Among them, the prices of a-si LCD, LTPS LCD, and rigid OLED will stabilize in the short term, and FOLED prices are expected to continue to rise. Tablet panels may face greater price pressure. 2) IT panel prices: Moniter panel prices will continue the slight upward trend in March. Notebook panels are in a state of balance between supply and demand, and prices will stabilize across the board. 3) TV panel price: Currently, the supply and demand sides of TV panels have entered an adjustment period, and panel prices will rise moderately in the short term to an extent acceptable to machine manufacturers.
Industry News & Key Company Announcements:
1) Industry news: Earthquakes and other emergencies affect the industry's supply and demand trends, and may drive some panel prices to rise further. Huawei released the MatebookX Pro equipped with an OLED screen, and the trend of high-end products shifting to OLED is becoming more and more clear. 2) Key company announcements: BOE A, Huaying Technology, Rainbow Co., Ltd., Kaisheng Technology, Vogue Optoelectronics and other companies released performance reports. Among them, although BOE A and Huaying Technology were affected by the slow recovery trend in the macroeconomic environment in 2023, and business indicators declined, BOE A and Huaying Technology performed well in the first quarter of 2024 as industry sentiment recovered, and BOE A and Huaying Technology performed well, and the LCD industry may usher in a new upward cycle.
Section tracking:
1) Panel index performance in the past month: Judging from the level of rise and fall, the panel industry index outperformed the Shanghai and Shenzhen 300 Index by 0.25 percentage points and outperformed the electronics index by 10.15 percentage points. Judging from the specific data, the panel industry index rose and fell -1.34%, the electronics industry index rose and fell -11.49%, and the Shanghai and Shenzhen 300 index rose and fell -1.09%. 2) Panel index performance in the past year: Judging from the level of rise and fall, the panel industry index outperformed the Shanghai and Shenzhen 300 Index by 10.92 percentage points and the electronics index by 19.22 percentage points. Judging from the specific data, the panel industry index rose and fell -2.13%, the electronics industry index rose and fell -21.35%, and the Shanghai and Shenzhen 300 index rose and fell -13.05%.
Risk warning: Risk of downstream demand recovery falling short of expectations, risk of price increases falling short of expectations, risk of technology iteration falling short of expectations, risk of production capacity bottlenecks.