Visionox Technology Inc(002387) ( Visionox Technology Inc(002387) . SZ) and shentianma ( Tianma Microelectronics Co.Ltd(000050) . SZ) released their first quarterly reports and announcements on April 28 and 29 respectively. They showed that the growth rate of performance slowed down in the first quarter of 2022, and they are overweight their investment in OLED. Tianma will invest in 8.6 generation OLED production line in Xiamen and Visionox Technology Inc(002387) will build 6 generation OLED module line in Hefei. This reflects the trend of accelerating the expansion and transformation of China’s small and medium-sized display panel industry from liquid crystal (LCD) to OLED.
According to the data of qunxi consulting, the global smartphone shipment in the first quarter of 2022 was about 301 million, a year-on-year decrease of about 10.4%, including about 74.3 million in China’s smartphone market, and the decline in the domestic market exceeded that in the overseas market. It is expected that the shipments of smart phones will show a downward trend in 2022, and the medium and high-end machines will be less affected by the peripheral environment.
Affected by the shrinking demand in the global smartphone market, the price of upstream smartphone panels continued to decline this year. According to Qunzhi consulting data, in February and March this year, the price of LCD mobile phone panel fell, and the price of OLED mobile phone panel also fell steadily.
As a major supplier of LTPS LCD mobile phone panel, in the first quarter of 2022, the performance of shentianma was also affected by the industry, realizing a revenue of 8.675 billion yuan, a year-on-year decrease of 0.72%; The net profit attributable to the parent company is 79 million yuan. In 2021, the annual revenue of shentianma exceeded 30 billion yuan for the first time to 31.8 billion yuan, a year-on-year increase of 8.88%.
The growth rate of Visionox Technology Inc(002387) , with OLED mobile phone panel as the main product, has also slowed down. In the first quarter of this year, Visionox Technology Inc(002387) revenue was 1.49 billion yuan, up 22.93% year-on-year, but slower than the 32.32% growth rate of last year; The net profit attributable to the parent company was – 580 million yuan.
Despite the pressure, the popularity trend of flexible OLED in medium and high-end smart phones in the world remains unchanged, and the share of Chinese manufacturers is increasing. According to cinno research, in the first quarter of 2022, the global shipments of smart phone AMOLED panels were about 152 million, a year-on-year decrease of 8%, and the share of Chinese manufacturers increased to 22.6%, a year-on-year increase of 7 percentage points.
Among them, BOE’s share in the global AMOLED smartphone panel market exceeded 10% to 11.2% for the first time in the first quarter Visionox Technology Inc(002387) ‘s share was 4.5%, with a year-on-year increase of 0.4 percentage points. The ltpo panel of Hefei 6th generation line has been mass produced and shipped; The shares of Huaxing and Hehui are 3.1% and 3%; Tianma’s share in the global AMOLED smartphone panel Market in the first quarter was 0.8%.
Facing the potential market and fierce competition, Visionox Technology Inc(002387) and shentianma are increasing their investment in OLED. Shentianma will invest 33 billion yuan to build an 8.6-generation OLED panel production line in Xiamen, focusing on vehicle display, it display and industrial product display Visionox Technology Inc(002387) 4 also announced on the evening of April 28 that it intends to build and operate a 6-generation flexible OLED module production line in Hefei, with a total investment of 11 billion yuan.
Visionox Technology Inc(002387) it is expected that flexible OLED will stimulate more product forms, such as curved surface, half fold, three fold, medium size and other types of flexible products, covering smart wear, mobile phones (including folding mobile phones), on-board and professional display. The industry is in a period of rapid expansion.
