Tcl Technology Group Corporation(000100) ( Tcl Technology Group Corporation(000100) . SZ) said in the record of investor exchange activities on March 24 that the price of LCD panel is expected to stabilize and recover in the second quarter. In terms of capacity utilization adjustment, it is expected that in the face of demand fluctuations in the future, the balance between scale and efficiency will be pursued.
“The strategy of panel factory has ushered in a change.” AVC Revo’s research report predicts that the current demand is sluggish, the Russian Ukrainian crisis has led to the cutting of orders by the whole machine factory, the slowdown of the climbing speed of the new production line of the panel factory, and even consider reducing production to prevent the further decline of the panel price.
In the first half of 2021, due to the rapid rise of LCD panel prices in Europe and America and the decline of LCD panel prices in the second half of 2021 Tcl Technology Group Corporation(000100) said that at present, the price of 32 inch and 43 inch panels has basically stopped falling. It is expected that the panel price is expected to stabilize and recover in the second quarter with the arrival of peak demand seasons such as tax rebate in North America and 618 in China.
Tcl Technology Group Corporation(000100) also said that the LCD panel inventory had fallen to less than two weeks in the first quarter of 2022, and TCL Huaxing was fully produced and sold in the first quarter. In the face of the current short-term decline in demand, after the country transfer of LCD panel capacity is coming to an end and the industry competition pattern is reshaped, it is expected that in the future, in the face of demand fluctuations, it will pursue the balance of scale and efficiency.
According to the Research Report of ovelvo, the sales volume of China’s TV retail market fell by more than 9% year-on-year in the first quarter of 2022, and the sales volume of TV in North America fell by more than 15% year-on-year in the first quarter of 2022. When the market demand is not optimistic, the outbreak of the Russian Ukrainian crisis has led to a significant reduction in the TV demand in the Eastern European market.
If the Russian Ukrainian war is deadlocked for a long time, ovirevo predicts that it will reduce the shipment scale of 3.5 million TVs in the Eastern European market. In the Eastern European market, Samsung Electronics and LG Electronics occupy a large market share. After being affected by the war, the pressure on Samsung Electronics to reach the shipment plan increased, and the inventory pressure increased. Therefore, Samsung Electronics had to cut off some panel procurement plans.
Samsung Electronics is expected to significantly reduce the purchase volume in March, April and may. Although some demand will roll to June, cutting orders in the short term will bring shipping pressure to the panel factory. LG Electronics also conveyed the intention of cutting orders to the panel factory. In addition, the Russian Ukrainian crisis caused a sharp rise in the price of upstream raw materials, pushing up global inflation, which is not conducive to the sales of global TV sets.
“If the production is not reduced, the panel factory will face the pressure of inventory growth and may suffer losses,” Chen Hui, general manager of Orville, told the first financial reporter. It is understood that TCL Huaxing Suzhou factory is considering starting annual repair in April; In addition, the latest plan of TCL Huaxing Shenzhen’s second 11th generation line is to maintain the monthly production capacity of 80000 substrates in the second quarter.
The climbing speed is also slowed down by Huike’s Mianyang and Changsha generation 8.6 lines. It was originally planned to climb to 200000 substrates in the fourth quarter of this year. According to the current situation, it will be difficult to achieve. BOE, LGD, sharp and platform panel factories also reported plans to reduce production.
Qunzhi Consulting’s TV panel price research report in early March also believes that the decline in global TV demand is expected to expand due to the situation in Russia and Ukraine. In March, the price of 32 inch panel is expected to stop falling in the short term, and the prices of other sizes of panels still maintain a downward trend.
As of 14:02 on March 25, Tcl Technology Group Corporation(000100) fell 1.01% to 4.88 yuan / share, and BOE ( Boe Technology Group Co.Ltd(000725) . SZ) fell 0.7% to 4.23 yuan / share Tcl Technology Group Corporation(000100) recently, the share repurchase plan has been launched, and the total repurchase amount will be no less than 450 million yuan and no more than 550 million yuan. On March 23, Tcl Technology Group Corporation(000100) has spent about 58.07 million yuan to buy back 0.08% of the company’s equity.
