2022 is the key year for the Android camp to impact high-end. Oppo, Huawei, Xiaomi and glory have successively released new folding screen mobile phones, whose strategic value exceeds the market value and establishes market awareness for the main models. According to IDC data, the global shipments of folding screen mobile phones reached 7.1 million in 2021, an increase of 264.3% year-on-year over 2020, and the penetration rate increased from 0.15% to 0.5%. We expect to exceed 50 million units in 2025, seven times that in 2021.
Folding screen smartphone models continue to be enriched and prices continue to decline. We expect that in the future, the product form of folding screen mobile phones may be mainly vertical folding, and the price will be lowered to 5 Faw Jiefang Group Co.Ltd(000800) 0 yuan, facing the mass medium and high-end market. The horizontal inward fold is the second, positioning the high-end business market, and focusing on the gear of about 10000 yuan.
The volume of folding screen mobile phones has driven the evolution of materials and processes upstream of the industrial chain. Although the industry is still facing difficulties such as the upstream is not large-scale and the downstream product ecology, we believe that the brand will accelerate the iterative upgrading and folding of terminal products to drive the growth of the whole industry. We are optimistic about the growth space of folding screen industry and related industrial chain companies.
Hinge: most brands are self-developed and designed, and the assembly process is mainly completed by Korean factories and Taiwan factories, involving MIM, liquid metal and other processes. The value of MIM parts is relatively flexible, which is related to the complexity of hinges and the number of parts. At present, Korean suppliers such as khvatec and s-connect mainly provide mature solutions, while Amphenol is the supplier of oppo find n and vivo x fold; Mainland manufacturers Jiangsu Gian Technology Co.Ltd(300709) , Kunshan Kersen Science & Technology Co.Ltd(603626) and other existing technologies and customer reserves.
Cover sector: UTG glass gradually replaces CPI and becomes the mainstream material of folding screen cover sector. Considering the limited domestic supply of UTG, compared with overseas high-cost manufacturing of thin glass, at present, Chinese enterprises mainly develop based on UTG thinning route, with lower cost and higher yield. Mainland manufacturers Wuhu Token Sciences Co.Ltd(300088) (thinning) and Triumph Science & Technology Co.Ltd(600552) (UTG Integration Leader) plan more actively.
Other important links: AMOLED display panel, BOE, Visionox Technology Inc(002387) etc. have become the main suppliers of downstream brands; OCA optical adhesive Jiangsu Sidike New Materials Science & Technology Co.Ltd(300806) mainly participates in the aftermarket.
Risk warning: the demand is less than expected; Technical iteration risk; Intensified industry competition, etc.
