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OLED industry boom! Usher in the best development period next year

Summary:Since Apple began using the OLED screen on the iPhone, the entire OLED industry chain has undergone tremendous changes, the demand ushered in the outbreak. The market expects that only OLED mobile phone screen market will reach about 36 billion U.S. dollars by 2020.

  In 2017, OLED industry boom, repeatedly lead to market concerns. So, in 2018, this section is still redouble their efforts to continue to provide investors with high quality investment opportunities?

OLED行业景气度提升!明年迎来最好发展时期

  Apple led the industry demand for innovation

  The so-called OLED, an Organic Light-Emitting Diode (LED), emits red, green and blue light sources according to different formulations under the proper voltage. Only the part that needs to be lit lights up. Compared with the LCD, OLED reduces the backlight module and some polarizers, can make a more thin screen.

  GF SecuritiesResearch reported that supply and demand booming OLED industry, highlighting the opportunities for investment in the industrial chain.

  From the demand side, along with Apple began to use the OLED screen on the iPhone, making the entire OLED industry chain has undergone tremendous changes, the demand ushered in the outbreak. According to IHS's estimates, OLED mobile phone screen alone can reach about 36 billion U.S. dollars in market space by 2020.

  According to the forecast of BIIntelligence and IDC's shipments, it is estimated that the demand for smartwatches will reach 137 million by 2020, and the demand for VR devices will be about 33 million, accounting for about 5.5 million. The total demand for flexible AMOLED screens is about 67 million.

  In the "Investment Strategy for the Electronics Industry in 2018", Cinda Securities wrote that in the future, as the cost of OLEDs declines, the yield of good products rises and the production lines of our country gradually put into operation, the competitiveness of related enterprises in China is expected to be enhanced. Industrial space will also expand.

  According to the latest report released by Display Supply Chain Consulting, global OLED industry revenue is expected to reach 23.2 billion U.S. dollars by 2017, an increase of 57% over the previous year and an increase of 50% by 2018 to reach 34.9 billion U.S. dollars and reach 628 by 2022 One hundred million U.S. dollars. The report predicts that 2019 global OLED smartphone panel shipments will reach 1.37 billion units, and in 2020 by more than LCD panel shipments.

  Flexible OLED is still the seller's market

  From the supply side, with the growth of supply of OLED core evaporation equipment, capacity constraints have been alleviated to a certain extent, which has accelerated the investment of panel makers.

  According to the investment plans of major panel makers, as the mainstream products in OLED, the global compound annual growth rate of AMOLED capacity will reach about 50% from 2017 to 2020. According to the data from IHS, it is expected that the supply status of AMOLED screen is expected to be greatly improved. The growth of flexible screen supply will be especially noticeable from 2017 to 2018, doubling the average annual growth.

  Currently, South Korean panel makers Samsung, LG still maintain the lead in the field of OLED. Domestic panel makers are accelerating the catch-up OLED layout. BOE Chengdu 6th generation flexible AMOLED line was lit in May this year; Pegasus, Verison and other panel makers of new product line construction is also steadily advancing.

  At present, the flexible OLED screen is still the seller's market, with great performance flexibility. Due to its high technological difficulty and low yield, it is estimated that the flexible OLED screen will be in short supply until 2020. If you consider the emergence of collapsible screens, the demand for OLED screens has doubled in size and may remain in short supply for a longer period of time in the future. OLED hard screen supply will maintain steady growth in the future supply and demand is expected to strike a balance faster.

  Guoxin Securities Research reported that the panel is an intensive investment industry, the size of the industry determines the right to speak. In terms of the rate of domestic capacity expansion, it is estimated that by 2020, domestic production capacity will occupy 20% of the global OLED panel shipments.

  Upstream equipment and materials area is a good opportunity

  At the material end, the value of the associated PCBs has risen substantially due to the need to use FPCs (flexible circuit boards) in flexible screens, accounting for nearly half the cost of raw materials and nearly 20% of the total manufacturing cost.

  Luminescent materials are the core components of OLED, the main suppliers of organic materials deserve attention. As for the driver IC, companies need to cooperate with the display manufacturers to customize the development of each IC R & D cycle of about 3 to 6 months, so the size and experience of the R & D team is the key to drive the value of a single unit increased.

  Equipment from the end of view, process changes, related equipment manufacturers room for growth. In the era of OLED, the demand of laminating machine and polarizer laminating machine will gradually decline. The demand of bonding equipment and testing equipment will be improved. Meanwhile, the demand for vapor deposition equipment and packaging equipment will be added.

  OLED technology attaches importance to "custom" equipment support services market. OLED-related equipment market size will be panel companies in the next few years the investment in OLED production line to maintain sustained growth. Related OLED manufacturers involved in the process, including module attached equipment suppliers, coating equipment suppliers, testing equipment suppliers are also of concern.

  Overall, the upstream equipment, especially the core equipment is still mainly controlled by foreign companies, but the rapid rise of mainland panel makers are generating a large number of equipment needs, and promote the localization of equipment.