On April 12, shentianma announced that it would invest 33 billion yuan to build an 8.6-generation a-Si and igzo LCD panel line, targeting the display applications of vehicle, it display (including flat panel, laptop, display, etc.) and industrial products.
Benefiting from the high outlook of the industry, the performance of leading panel manufacturers increased rapidly in 2021. The net profits of BOE, Tcl Technology Group Corporation(000100) and other companies increased significantly. Market analysis believes that with the integration of production capacity and the improvement of industry concentration, the LCD industry is gradually entering a mature period of rapid development driven by investment, and the cyclical fluctuations caused by the release of production capacity of new production lines will be greatly suppressed. The semiconductor display industry will go out of the cyclical characteristics and become a growth industry in the future, and the profitability of industry leaders is expected to grow steadily and maintain at an ideal level.
Tianma Microelectronics Co.Ltd(000050) United Xiamen guozizhong injection new production line
Tianma Microelectronics Co.Ltd(000050) announced that the company plans to establish a joint venture project company in Xiamen through its wholly-owned subsidiary Xiamen Tianma, Xiamen Itg Group Corp.Ltd(600755) holding, Xiamen rail group and Xiamen Jinyuan Industry to build a one-month processing line of 2250mm × The 8th.6th generation new display panel production line project with 12 Fiyta Precision Technology Co.Ltd(000026) 00mm glass substrates has a total investment of 33 billion yuan.
The registered capital of the joint venture project company is 19.8 billion yuan, of which Xiamen Tianma contributes 2.97 billion yuan and holds 15% equity of the joint venture project company; The partners made a total contribution of 16.83 billion yuan and held 85% equity of the joint venture project company.
The main technology of this project is the dual track parallel of a-Si and igzo technology, and the target product market is vehicle mounted, it display (including flat panel, laptop, display, etc.), industrial products and other display applications.
Tianma Microelectronics Co.Ltd(000050) said that at present, the company remains a global leader in many display segments such as LTPS smartphone, vehicle, high-end medical treatment, smart home, HMI and VoIP. The project will complement the existing production line of the company, increase the scale advantage and cost advantage, and with the help of the rich experience accumulated by the company in technology, process, operation, management, talents and customers, the company will strengthen the opportunity capture ability and product competitiveness of the company in the on-board display business, and maintain the leading position of the on-board business; Accelerate the expansion of it markets such as laptop and tablet, and further improve the layout of small and medium-sized production lines of the company.
At the same time, it will enrich the company’s product portfolio, meet the diversified and incremental needs of customers in all aspects of product layout, enhance the stickiness with customers, continue to enhance the company’s growth momentum, enhance the company’s comprehensive strength in the field of display panels, and consolidate and expand the company’s leading position in the field of display panels.
Tianma Microelectronics Co.Ltd(000050) said that after years of hard work and accumulation in the display industry, the company has improved its production line portfolio and continuously increased its investment in global advanced technology and high-end production lines. It has formed a layout of small and medium-sized mainstream display technologies in the whole field from passive, a-Si TFT-LCD, LTPS TFT-LCD to AMOLED. It has TFT-LCD production lines from generation 2 to generation 6 (including a-Si and LTPs), AMOLED production lines of generation 5.5, AMOLED production lines of generation 6 and TN STN production line.
In the context of the rapid growth of the market demand for small and medium-sized displays, the project is another major strategic layout of the company in the field of new displays, which is in line with the company’s strategic planning. It will help to optimize and improve the production line configuration and business layout, provide customers with more comprehensive product solutions, and accelerate the realization of the strategic goal of leading enterprises in the field of global displays.
however, Tianma Microelectronics Co.Ltd(000050) also suggests investment risks. The company said that with the progress of on-board display technology and the rapid development of new energy vehicle industry, and the superposition of the impact of the epidemic, the market demand for it products is strong, and the small and medium-sized market of panel display industry continues to grow. Major display panel manufacturers around the world have increased investment in the construction of new display technology production lines, accelerated industrial upgrading and product structure adjustment, and the market competition is fierce
At the same time, it shows that the investment amount of industrial projects is large, with complex processes and technical routes. Whether the production line capacity can be released on schedule and effectively is closely related to the capacity utilization rate and product yield. The R & D technical level and process level also affect the competitiveness of products in performance and price. In addition, the technical risk is also reflected in the patent barriers built by the practitioners who first enter the industry.
In terms of finance, the investment of the project is large, and if the funds are not fully available, there will be risks. On the other hand, the main equipment and some raw materials need to be imported, and the change of exchange rate has a certain impact on the investment estimation. Therefore, the company has done a good job in the preliminary demonstration and fund solution of the project, and will do a good job in communication and coordination with shareholders, banks and other institutions in advance, promote the implementation of funds as planned, and plan the use of funds. At the same time, the company will always pay attention to the current economic situation and the change trend of exchange rate, make rational analysis and judgment, and reduce financial risk.
several leading companies’ profits soared
Not long ago, Tianma Microelectronics Co.Ltd(000050) released its annual report. In 2021, the company achieved an operating revenue of 31.829 billion yuan, an increase of 8.88% year-on-year; The net profit was 1.542 billion yuan, a year-on-year increase of 4.61%.
Tianma Microelectronics Co.Ltd(000050) said in the annual report that during the reporting period, the company actively grasped the market growth opportunities, continued to increase resource investment, deeply cultivated the niche market, deeply promoted the upgrading of product structure, optimized business portfolio and continuously increased the proportion of high value-added products.
Each mature production line of the company maintains full production and sales, and the a-Si business continues to improve efficiency and efficiency; While maintaining the leading position in smart phone business, LTPS business has made great efforts to expand notebook computer, tablet computer and vehicle display business, with rapid growth; The technical capability of AMOLED flexible mobile phone display module products has been continuously improved, the shipment and sales have increased significantly, the wearable business has grown rapidly, and the market and industry position have been further improved.
It is noteworthy that the performance of Tianma Microelectronics Co.Ltd(000050) is not outstanding in the industry. According to the data of the annual report, the panel industry has enjoyed a high prosperity in the past two years, and the net profits of industry leaders Boe Technology Group Co.Ltd(000725) , Tcl Technology Group Corporation(000100) and others have increased significantly in 2021.
Boe Technology Group Co.Ltd(000725) annual report shows that the company’s annual revenue is about 219310 billion yuan, with a year-on-year increase of about 61.79%, and the net profit attributable to shareholders of listed companies is about 25.831 billion yuan, with a year-on-year increase of about 412.96%.
On the evening of March 10, Tcl Technology Group Corporation(000100) released the annual performance express of 2021. In 2021, Tcl Technology Group Corporation(000100) achieved an operating revenue of 163528 billion yuan, a year-on-year increase of 112.8%; The net profit attributable to the parent company was 10.062 billion yuan, with a year-on-year increase of 129.3%, and the net profit deducted from the non parent company was 9.417 billion yuan, with a year-on-year increase of 221.1%.
In terms of display business, Tcl Technology Group Corporation(000100) pointed out that in 2021, affected by the fluctuation of supply chain and the adjustment of market demand in some regions of the world, the prices of major large-scale products have been corrected since the third quarter, but the overall profit margin of the industry has improved, and the average price of products is still higher than that in the same period of 2020. At the same time, benefiting from positive measures such as the company’s capacity scale improvement, the implementation of high-end strategy for large-scale products, accelerated breakthroughs in medium-sized products and customers, and focus on differentiation of small-sized products, the net profit of the business increased by about 340% year-on-year.
Haitong Securities Company Limited(600837) pointed out that the optimization of panel industry pattern will bring long-term growth. From the perspective of supply and demand, in terms of future supply, unlike the previous centralized and substantial expansion of production capacity, the demand area basically maintains a stable growth. In some mature application scenarios, the growth rate may be low, but the demand for new application scenarios will show high growth, and the supply and demand of the industry will maintain a dynamic balance.
From the perspective of competition pattern, the price correction will make some production lines with weak cost competitiveness suffer losses, accelerate the withdrawal of backward production capacity of the industry, and the increasing trend of industry concentration will remain unchanged.
In the long run, with the integration of production capacity and the improvement of industry concentration, the LCD industry is gradually entering a mature period of rapid development driven by investment, and the cyclical fluctuation caused by the release of production capacity of new production lines will be greatly suppressed. We believe that the semiconductor display industry will go out of the cyclical characteristics and become a growth industry in the future, and the profitability of industry leaders is expected to grow steadily and maintain at an ideal level.
