At the performance presentation meeting held on May 19, in view of the progress of the project of high-performance luminescent materials for AMOLED with an annual output of 10 tons, Xuan Jingquan, chairman and general manager of Jilin Oled Material Tech Co.Ltd(688378) ( Jilin Oled Material Tech Co.Ltd(688378) . SH), said: “at present, the new factory of Jilin Oled Material Tech Co.Ltd(688378) (Shanghai) has entered the trial production stage, and will gradually increase the volume according to the order situation, and it is planned to reach the full production capacity by 2024.”
Jilin Oled Material Tech Co.Ltd(688378) mainly engaged in the R & D, manufacturing, sales and after-sales technical services of the terminal materials of organic light-emitting materials and evaporation source equipment in the upstream link of the OLED industry chain. Among them, organic light-emitting materials are the core materials for OLED panel manufacturing, and evaporation source is the core component of the evaporation machine, the key equipment for OLED panel manufacturing. In recent years, the company has made breakthroughs in packaging materials, evaporation machines and other “neck” products.
Shenwan Hongyuan Group Co.Ltd(000166) research report said that China’s OLED industry is still in a period of rapid development. In the short term, the iteration of new display technology is mainly the gradual penetration of AMOLED technology into LCD technology. According to cinno research, in 2021, the market share of AMOLED panels in China in the global shipping area has exceeded 20%. With the gradual mass production of multiple AMOLED production lines, the scale of China’s OLED industry will usher in a period of rapid growth in the next three years. At that time, the market share of China’s AMOLED panel will be greatly increased, thus driving the rapid growth of the overall scale of the industry.
The annual report shows that in 2021, the company achieved an operating revenue of 406 million yuan, a year-on-year increase of 43.17%; The net profit attributable to the owners of the parent company was 136 million yuan, a year-on-year increase of 89.19%. The company said: “in 2021, the operating revenue increased by 43.17% year-on-year, mainly because the OLED display industry continued to improve in 2021, and the company’s main business maintained a high-speed growth momentum. Among them, the revenue of organic light-emitting materials increased by 52.82% year-on-year, and the revenue of steam source equipment increased by 39.04% year-on-year.”
According to xuanjingquan, as of December 31, 2021, the order of steam source in hand was 407 million yuan. Since steam source is a high-end precision equipment, it is customized according to customer orders. Customer order demand and progress are based on its OLED display panel production line construction plan, and the output change is related to the order quantity of the current year. The company recognizes revenue after obtaining the final acceptance report issued by the customer. There is a certain lag in revenue recognition. The interval from the signing of the contract to the final acceptance of the customer is about one to two years.
There is a view in the market that the growth of Jilin Oled Material Tech Co.Ltd(688378) mainly depends on the steam source, and the growth will slow down with the gradual saturation of China’s panel plant construction line. In this regard, xuanjingquan said: “with the continuous improvement of product performance by customers, the existing steam source products will be continuously upgraded and transformed. At present, the industry is planning a high-generation production line. Our company has arranged in advance to carry out the research and development of high-generation steam source, and has achieved phased results.”
The capacity and demand of packaging materials for new projects are also concerned by investors. Xuanjingquan said: “the capacity of packaging materials is 3 tons / month. Now the testing of downstream manufacturers is normal, and sales are expected in the second half of the year. The demand of downstream manufacturers is affected by the orders of end customers, and the capacity can meet the demand.”
With regard to the progress of customer introduction of thin film packaging materials, xuanjingquan replied: “at present, it has passed Everdisplay Optronics (Shanghai) Co.Ltd(688538) production line test, become the first qualified supplier of packaging materials in China, realize the first order sales of products, and is undergoing production line test in BOE, Visionox Technology Inc(002387) , Tianma.”
