Open Source Securities: Panel industry boom rebounds, OLED medium penetration rate is expected to increase

The Zhitong Finance App learned that Open Source Securities released a research report stating that from March to April 2023, stocking demand supported the general rise in global TV and IT panel prices, and the panel industry's boom rebounded. Among them, in terms of OLEDs, Japan's JOLED announced that it has filed for bankruptcy and restructuring, and China and South Korea may become the main participants in the OLED panel industry. Among them, South Korea's Samsung Display and LG Display each have an advantage in the small to medium size OLED panel market. The share of Chinese panel companies such as BOE, Vicente, and Shenzhen Tianma in the small to medium size OLED panel market is expected to increase in an orderly manner. Since 2024, Samsung Display and BOE have continued to promote the construction of 8.6-generation OLED panel production lines. Mass production is expected to begin in 2026, mainly for medium-sized OLEDIT products.

OLED materials, optical films, etc. are expected to gradually increase the penetration rate of mid-size OLEDIT panels with the construction of high-generation OLEDIT panel production lines and terminal products and technology. Coupled with the continuous optimization of the LCD panel and OLED panel industry pattern and the recovery in industry prosperity, we will continue to be optimistic about upstream OLED materials, optical films, etc.

The main views of Open Source Securities are as follows:

TV and IT panel prices rose in early April 2023, and the panel industry's boom picked up

(1) In terms of LCD panels, manufacturers in Japan, South Korea, and Taiwan are speeding up the closure or sale of panel factories, and the market share of floor board companies in mainland China is expected to increase further.

(2) In terms of OLED panels, Japan's JOLED has filed for bankruptcy and restructuring, and the competitive pattern of the global OLED panel industry may be further concentrated in China and South Korea. Samsung Display and BOE will continue to promote the construction of high-generation OLED panel production lines, and mass production is expected to begin one after another in 2026.

(3) In terms of technology application and product promotion, Apple, LG Display, etc. lead the mid-size OLED application. Domestic and foreign manufacturers continue to introduce OLEDTandem technology, and brand participation and product richness are gradually increasing. Open Source Securities said that with the release of production capacity for high-generation OLED panels and the expansion of product application boundaries, it is optimistic that the medium penetration rate of OLED will gradually increase. Coupled with the continuous optimization of the LCD panel and OLED panel industry pattern and the recovery in industry sentiment, it will continue to be optimistic about consumer electronics materials such as upstream OLED materials and optical films.

Panel industry pattern optimization, boom recovery, high generation OLED production line launched+medium size applications flourish

According to data from Qunzhi Consulting, from March to April 2023, stocking demand supported the general rise in global TV and IT panel prices, and the panel industry's boom rebounded.

(1) LCD panels: Japan's Sharp, Inntron Optoelectronics's Nanjing factory, LG Display Guangzhou line, and JDI Dongpu factory are all leaving the market, and the market share of LCD panel companies in mainland China is expected to increase further.

(2) OLED panel: Japan's JOLED announced that it has filed for bankruptcy and restructuring. China and South Korea may become major participants in the OLED panel industry. Among them, South Korea's Samsung Display and LG Display each have an advantage in the small to medium size and large OLED panel markets. The share of Chinese panel companies such as BOE, Vicente, and Shenzhen Tianma in the small to medium size OLED panel market is expected to increase in an orderly manner. Since 2024, Samsung Display and BOE have continued to promote the construction of 8.6-generation OLED panel production lines. Mass production is expected to begin in 2026, mainly for medium-sized OLEDIT products.

(3) Technology application and product promotion: Hybrid OLED uses a glass substrate+film package to help achieve a thinner and lighter design; Tandem OLED (laminated) technology can improve the efficiency and lifespan of OLED devices, and is more flexible in the selection and combination of light-emitting materials. Omdia predicts that Apple will continue to use OLED display panels in its mobile computers and tablet products; LG Display is at the top of the global large-size automotive OLED display market and will officially mass-produce 17-inch foldable notebook OLED panels in 2023. Domestic manufacturers such as Honor, BOE, and Huiguang are actively laying out OLED products and introducing new technologies. Increased brand participation is expected to increase the penetration rate of OLED in size.

Recommended targets: OLED materials, Ruilian New Materials (688550.SH), Wanrun Co., Ltd. (002643.SZ), Puyang Huicheng (300481.SZ), etc.; optical films, Dongcai Technology (601208.SH), Jiemei Technology (002859.SZ), Changyang Technology (688299.SH), etc.

Beneficial targets: Wright Optoelectronics (688150.SH), Olaide (688378.SH), etc.

Risk warning: Shows technology iterations, customer orders falling short of expectations, project progress falling short of expectations, etc.