After 15 consecutive months of price increase, the panel price began to loosen in July this year, ending its rise, and began to fall dramatically in August, and is expected to continue to plummet in September.
According to a survey by panel market research agency WitsView, the quotations of 32 and 43-inch TV panels fell by 14.9% and 11.7% respectively in late August, with the worst decline, with the 55 and 65-inch TV panels falling by about 5% to 7%. Judging from the latest quotation on September 6, the price of TV panels has basically returned to the price at the beginning of this year. The price of
panel fell, mainly due to the increase in vaccine coverage in advanced European and American countries, the epidemic tends to flu, and economic activities are gradually unblocked, people are moving from home to outdoors, and the allocation of consumer spending has changed significantly. According to research company Sigmaintell Consulting, in the third quarter of 2021, the total purchase volume of panels in the world's top nine TV brands was 42.6 million yuan, a year-on-year decrease of 8%.
has been rising prices continuously in the past. The commercial performance of panel manufacturers has increased by more than 10 times. Due to the epidemic, LCD panels have increased their prices since April last year. As of June 2021, the year-on-year increase of 55-inch and below small and medium-sized sizes has increased by more than 90%, while the increase of 55-inch, 43-inch and 32-inch panels is 97.3%, 98.6% and 151.4% respectively. Benefiting from high demand and high price growth, panel manufacturers' business performance increased significantly in the first half of this year.
BOE and TCL Huaxing net profit increased by more than 10 times. In the first half of the year, BOE achieved revenue of 107.285 billion yuan, a year-on-year increase of about 89.04%, and net profit attributable to shareholders of listed companies was approximately 12.762 billion yuan, a year-on-year increase of about 1023.96%. It ranks first in shipments in five major fields: smartphones, tablets, monitors, TVs and laptops.
TCL Huaxing achieved operating income of 28.2 billion yuan in the first half of this year, an increase of 131.9% year-on-year, and the net profit attributable to shareholders of listed companies was 7.17 billion yuan, an increase of 1384.6% year-on-year. Its 55-inch TV panel share was the world's first, and the 65-inch and 75-inch panel share was the world's second.
In addition, manufacturers such as Huike , Shentianma , Rainbow Co., Ltd. , Longteng Optoelectronics , Visionox and other html all achieved good growth in the first half of the year. In addition, previously, Samsung and LG have announced their withdrawal from the LCD panel market. Due to the increase in panel prices, both of them have temporarily suspended the clearance of production capacity. LG's production capacity has gradually recovered, and its LCD TV panel shipment area accounts for 9.4%, returning to the fifth place in the world.
BOE, TCL Huaxing and Huike shipments exceed half of the world
At present, most of the LCD panel production capacity is concentrated in China, and the concentration is becoming more and more obvious. According to CIDI Consulting data, mainland China's LCD production capacity accounts for 50% of the world in 2020. According to the latest data from CINNO Research, the LCD panel shipment area of the three major manufacturers BOE, TCL Huaxing and Huike accounted for 50.9% of the global total shipment area in the first half of the year, more than half.
The global panel industry has gone through several stages: the first stage is that before 2000, it was mainly dominated by Japanese manufacturers, and at the same time, Korean manufacturers were also vigorously developing the industry. At that time, South Korea's Samsung accounted for the first place in the world in shipments;
The second stage is that from 2000 to 2010, technology began to transfer from Japan to Taiwan, China, and companies represented by BOE also developed rapidly during the same period. The third stage is that from 2010 to now, Japanese and Korean manufacturers have gradually shifted their focus and withdrawn from the LCD market, and mainland Chinese manufacturers have grown to the world's number one.
From the perspective of shipments in the first half of this year, the shipment area of BOE, TCL Huaxing and Huike LCD panels accounted for 22.7%, 17.7% and 10.4% respectively. BOE and TCL Huaxing have completed the acquisition capacity integration, and the new production lines have gradually increased. Huike has benefited from the improvement of delivery capabilities of large-size products. The layout of LCD production lines of BOE, TCL Huaxing and Huike is as follows:
will inevitably usher in a decline after a long-term price increase. At present, from a global perspective, the LCD panel industry is basically maturing, and the supply pattern is gradually becoming more concentrated. China's leading manufacturers also have strong bargaining power.
As the price continues to decline, Samsung and LG may continue to push the exit of LCD production lines. Chinese manufacturers' share of LCD panels is expected to increase. At the same time, for domestic panel manufacturers, there are two issues that need to be paid attention to.
First, increase investment in important materials upstream of the LCD industry chain, such as polarizers and color filters. These two materials account for the highest proportion of LCD screen costs, while the proportion of domestic LCD manufacturers is still relatively low, and most of them rely on Japanese imports.
Second, in addition to ensuring that LCD production capacity is sufficient to meet market demand, we still need to increase investment in new OLED displays to avoid lagging behind Japanese, South Korea and other manufacturers in emerging technologies and markets.
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