1. The decline of TV panel price narrowed, and the price reduction stimulated the rebound of small-size demand: Recently, the latest price of TV panel disclosed that the panel price has fallen rapidly since the last two quarters, gradually touching the cash cost line of the panel factory, and the decline of each size converged to varying degrees. According to AVC industrial chain data, the price decline of small-size panels contracted significantly in November, and the decline of medium and large-size panels also narrowed slightly. Considering the weak demand side of Q4 and the impact of high inventory, the industrial chain generally believes that the downward trend of panel price will be alleviated in Q1 next year. This price decline narrowed and contracted more than expected, and the panel price is expected to stabilize in advance.
2. The promotion of terminal application exceeded expectations and laid the first year of mini led business: as an advanced technology of small spacing led, mini LED has become one of the main promotion directions of the industrial chain with its multiple advantages in recent years.
Its application fields are mainly divided into two markets: display and backlight. At present, the development of mini LED display is slow due to yield, cost and other factors. The promotion of terminal application in the backlight field exceeded expectations, and is in the key stage of accelerating the application and promotion of mini LED backlight technology, laying the first year of mini led commerce.
3. Sorting out investment opportunities: Mini led was originally only a transitional scheme for the development of LCD to OLED. However, with the product application of major manufacturers this year, the application field of mini LED backlight is advancing rapidly, and the application of OLED large screen still needs 6-8 years. The importance of mini led in the field of display panel is increasing, and the products are in the early stage of large-scale production.
At present, China has mastered the advantages of industrial chain pricing and R & D technology in the field of LCD technology, and the localization of all links of mini led industrial chain has developed completely. In the mini led benefit cycle, on the basis of mature technology reserves and sufficient production capacity, upstream chip, equipment, packaging and testing manufacturers and core panel manufacturers are expected to take the lead in benefiting. Relevant benefit targets include screen manufacturers: Tcl Technology Group Corporation(000100) , BOE, packaging: Mls Co.Ltd(002745) , equipment: Shenzhen Xinyichang Technology Co.Ltd(688383) , film materials: Ningbo Solartron Technology Co.Ltd(688299) .
4. Communication sector view
1) Continue to focus on recommending high growth sectors such as it main equipment, communication + new energy, network security, Internet of vehicles application and military communication.
2) This week, we mainly recommend undervalued stocks: Unisplendour Corporation Limited(000938) , Jiangsu Zhongtian Technology Co.Ltd(600522) , Willfar Information Technology Co.Ltd(688100) , Black Peony (Group) Co.Ltd(600510) (acquisition of Aite energy layout thermal energy management business), Tcl Technology Group Corporation(000100) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Beijing Sinnet Technology Co.Ltd(300383) , Goldcard Smart Group Co.Ltd(300349) , Aisino Corporation(600271) , Hangzhou Anysoft Information Technology Co.Ltd(300571) , Zte Corporation(000063) and other companies.
5. Risk tips
Fierce price competition and sharp decline in gross profit risk; The popularization of EDR has not progressed as expected.
