As an indicator of the Open Cell (semi-finished products without backlights, etc.), the 32-inch November single-price discount price dropped to about $49 per piece, down 6% from the previous month. 55 inches also fell to around $152, down 2%. As China's panel makers increase production, the sense of oversupply is strengthening.
The large single-price discount for TV LCD panels increased in July-September at the end of the year, but it fell again after October. The demand side seems to be demanding to trade at a level below the recent low in June.
China's large panel makers such as BOE have expanded their production capacity and are improving their yield. The demand for large-size LCD TVs has remained firm in China and the United States, but the supply of panels is oversupplied.
According to the panel price of IHSMarkit, the senior director of the UK research company, "the possibility of maintaining a downward trend in 2019 is high." For panel makers, it may become a factor in the deterioration of earnings.
The harsh winter of the panel industry continues. In addition to the narrowing of profits of panel companies such as Jingdongfang Technology Group Co., Ltd. (000725.SZ, hereinafter referred to as “BOE”), Huaxing Optoelectronics, LGD, etc., China Taiwan Panel Enterprise CPT also recently announced that it was forced to suspend production due to the debt crisis.
At the same time, BOE is adding non-stop medical and flexible screen services. Recently, BOE said that its first digital hospital, the Beijing-Hebei Hefei Digital Hospital, has obtained various qualifications and is expected to be officially opened in the first quarter of 2019. Subsequently, BOE also announced that it plans to build a sixth-generation AMOLED production line in Fuzhou with a total investment of 46.5 billion yuan.
In this regard, industry analysts said that the current price decline is mostly LCD liquid crystal panels, flexible OLED panels have not yet been widely popularized, BOE's move may be to invest in flexible OLED panels to achieve cornering overtaking, and as the highest gross profit rate of medical care Business, with the increase in investment, the proportion of revenue in the later period may increase.
