Panel industry transferred to mixed crystal domestic production rate increased
The transfer of the global LCD panel industry has experienced a process of "The origin of the United States, the development of Japan, the transcendence of South Korea, the rise of Taiwan, and the power of the mainland". Since 2009, the mainland LCD panel began to exert its power, and the global LCD panel production capacity also shifted from Japan, South Korea and Taiwan to mainland China.
LCD is a liquid crystal display, mainly used in TV, notebook computers, mobile phones and other fields, the market widely used TFT-LCD technology, by adding thin film transistors to make each liquid crystal molecular switch independent, to achieve stable effect.
With the continuous progress of display technology and the continuous improvement of production equipment level, domestic panel manufacturers such as BOE A and Huaxing Optoelectronics gradually occupy A dominant position in the global competition. Mainland China has also become the world's largest area of new display capacity and shipment.
Data show that in 2021, in terms of the proportion of global LCDTV panel production area, boe, Huaxing Optoelectronics and Huike's production area will account for more than 50%. The improvement of production capacity drives the overall development of the upstream and downstream industry chain, and the demand for materials increases substantially.
Due to the technical difficulty of mixed crystal production, the global TFT LIQUID crystal market has been basically monopolized by MERCK of Germany, JNC of Japan and DIC for a long time, and the localization rate is not high. Data show that the three global market share of 80%, among them, Germany MERCK accounted for 55%, Japan JNC and DIC accounted for 20% and 8% respectively.
However, it is worth noting that in recent years, Chinese display materials have gradually achieved home-made breakthroughs, and gradually moved closer to international enterprises in terms of indicators and performance. Relying on cost-effective advantages and technical service advantages, they have gradually gained recognition from customers, and the home-made rate of liquid crystal materials has gradually improved.
At present, the domestic formation of and into the display (Feikai materials (300398) subsidiary), Chengzhi Yonghua (Chengzhi shares (000990) subsidiary), 800 million space-time based tripartite pattern.
800 million space-time's latest Hexun SGI score is 77, ranking 134. What about the company?
Mixed crystal localization substitution drives performance growth
Founded in 2004, 800 Million Space-time was listed on the New Third Board in 2014 and on the Science and Technology Innovation Board in 2020. It is the only mixed crystal company listed separately in China. The company is a high-tech enterprise specializing in the research and development, production and sales of liquid crystal materials for display, polymer dispersed liquid crystal (PDLC) smart film, organic electroluminescent materials (OLED), polyimide (PI), photoresist materials.
The main product is ThinFilm Transistor (TFT) and other hybrid liquid crystal materials, which are widely used in hd TV, smart phone, computer, car display, smart instrument and other terminal display fields.
Data show that in 2018, the sales volume of 800 million space-time mixed LIQUID crystal is 43.84 tons, accounting for 5.79% of the global market. The company's product structure is gradually developing to high-end, from the initial product structure based on TN-LCD(twisted nematic liquid crystal), STN-LCD(super twisted nematic liquid crystal), It has developed into a current business pattern dominated by TFT-LCD(thin film transistor liquid crystal), and fully covers positive-IPS, negative-IPS, PSVA and other products. Since 2016, it has entered the OLED material field, benefiting from the substitution of mixed crystal, and its profitability continues to increase.
2021 performance express shows that 800 million spatio-temporal revenue and net profit was growing. The specific situation is: in 2021, the revenue is 887 million yuan, with a year-on-year growth of 36.71%; The total profit reached 249 million yuan, up 23.61% year on year; Net profit of RMB 207 million, up 21.35% year on year; Non-deduction net profit of 179 million yuan, a year-on-year increase of 25.50%.
According to the company, the main factors affecting its operating performance are the growth of LCD panel demand in 2021, the increase of customer demand for LCD materials, and the continuous expansion of order scale.
For 800 million people, 2015 is a critical year. This year, 800 million time took the express train of BOE and became its main supplier of domestic LIQUID crystal materials. At that time, the revenue of 800 Million space-time was less than 100 million yuan. Since 2016, 800 Million space-time's supply quantity to BOE has continued to increase significantly, and its revenue has increased significantly.
In terms of elongated data, from 2016 to 2020, the operating income of 800 million space and time is 133 million yuan, 231 million yuan, 394 million yuan, 430 million yuan and 649 million yuan respectively, and the growth rate of revenue is 64.18%, 73.68%, 70.76%, 9.3% and 50.71% respectively.
There are three risks
Revenue data has climbed behind, not as smooth as the surface, but also hidden a lot of worries.
First, the company's deep dependence on BOE followed. Data show that, as the company's first customer, BOE accounted for 38.09%, 69.30%, 75.51%, 71.73% and 66.88% of the revenue in the same period from 2016 to 2020.
Among the 800 million customers, BOE is the largest one. Due to the high concentration of customers, the company's lifeline in the hands of the financial owner boe has always been criticized by the industry. It is worth noting that this proportion has started to decline since 2019.
Secondly, panel prices fell, the gross margin is falling.
The panel industry experienced a downturn in the second half of 2021 after a decade of high economic growth. Affected by European and American subsidies retreat, rising shipping costs and partial overdraft demand and other reasons, LCD panel prices fell rapidly.
According to the statistics of Group Intelligence consulting, LCD TV panel prices in the first quarter of 2022 still maintain a downward trend, among which the cumulative decline of small size in the first quarter of 5%-8%; The cumulative price decline of large size panel of 50 inches and above is 10%~12%, while the price decline of LCDTV panel in the second half of last year is more than 25%, the overall decline is significantly moderated compared with the second half of last year.
Downstream LCD panel overcapacity, prices are falling, a number of panel manufacturers are considering production cuts to cope with falling prices.
AVCRevo research forecast, the current demand is depressed, Russia and Ukraine crisis led to the whole machine factory cut orders, panel factory new production line climbing speed slowed down, or even consider reducing production, to prevent further decline in panel prices.
TCL technology said LCD panel prices are expected to stabilize and recover in the second quarter. In terms of capacity utilization adjustment, it is expected that the balance between scale and benefit will be pursued in the face of demand fluctuations in the future. Boe, LGD, Sharp and Taiwan-based panel manufacturers have also reported plans to cut production.
Downstream panel price drop, industry competition intensifies, mixed crystal material price downward pressure is greater. The gross margin of eight hundred million space also declined year by year. The gross margin of mixed LCD was 56.17% in 2018, 48.18% in 2019 and 47.86% in 2020. In the third quarter of 2021, the gross margin of 800 million space was 47.11%, declining significantly.
Secondly, 800 million spatio-temporal products single, in the Red Sea fierce competition.
800 million space-time's main business income comes from mixed liquid crystal, liquid crystal monomer, etc., mainly mixed liquid crystal, TFT mixed liquid crystal as the core product.
Among them, mixed liquid crystal is the absolute main force, from 2018 to 2020, mixed liquid crystal accounted for 91%, 99.93%, 96.86% of the revenue.
And now, domestic panel manufacturers have begun to adjust product structure actively, to deal with the cyclical changes in the industry.
Panel manufacturers such as TCL Huaxing and BOE are making adjustments, such as reducing the proportion of TV panel production capacity, increasing IT panel production capacity, increasing the proportion of medium and high-end products, and actively laying out OLED production lines to gain more profit margins.
However, there is still a long way to go for the company, which still relies on mixed crystal as its main revenue, to realize industrialization of OLED display materials and form a new profit growth point as soon as possible.
