2.OLED mass production / LCD expansion drive BOE's future performance growth can be expected
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1. Puyang Huicheng access to capital support is expected to accelerate the localization of OLED luminescent materials intermediates
Set micro-mesh news, Puyang Huicheng Dingzeng project line has been completed, a total of 10 million shares issued, the issue price of 20.09 yuan / share, raised 201 million yuan of funds, the proceeds will be used for 'annual output of 10,000 tons of maleic anhydride Derivatives expansion project ',' an annual output of 3,000 tons of hydrogenated bisphenol A new resin material project ',' an annual output of 1,000 tons of electronic chemicals project '.
It is reported that the custom access to Beijing core kinetic energy, civil rights, China Securities Investment Securities participating subscription, is expected to help OLED domestic intermediates intermediates.
Shenwan Hongyuan Group Co., Ltd. Research Report pointed out that this non-public offering of Beijing core kinetic energy investment fund subscription of about 80 million (40%), civil rights of China Investment Securities Venture Capital Fund subscription of about 71 million (35%). Beijing core Kinetic shareholders Side including BOE and National IC large fund, civil rights in the country, including the State Securities Investment Authority Zhengzhou SASAC, Citizens County Finance Bureau. We believe that the company as a domestic production of essential intermediates blue OLED intermediates fluorene-based materials companies in the BOE, Under the support of the National Grand Fund and Zhengzhou Municipal Government, combining the industries and government resources, it will realize the linkage of the upstream and downstream industries and accelerate the localization of OLED luminescent material intermediates. The Company's OLED materials are expected to usher in the development of new opportunities.
R & D investment continued to grow, the project will inject new impetus to increase the company R & D investment from 12.8 million yuan in 2012 to 30.77 million yuan in 2016, accounting for the proportion of revenue increased from 3.29% to 8.19%, the company's new resin material hydrogenated bisphenol A , OLED intermediates and other high-end electronic chemicals R & D projects already have the industrialization conditions.On this basis, the company through the non-public offering to build 'an annual output of 10,000 tons of maleic anhydride derivatives expansion project', 'an annual output of 3,000 tons Resin Material Hydrogenated Bisphenol A Project 'and' Annual Output of 1,000 Tons of Electron Chemical Projects' .Increase in Fixed Assets In addition to the expansion of existing production capacity, the expansion of high-end electronic chemicals business is expected to increase the overall gross profit margin and consolidate the company's leading position in the industry.
Incomplete supply of maleic anhydride derivatives, the price rebound is expected to drive the gross margin rebound. Company maleic anhydride derivatives widely used in electronic components packaging materials, electrical equipment insulation materials, coatings, composite materials and other fields. With the downstream demand continued to grow, the company The sales volume of the products keeps increasing by about 10% every year. At present, the production capacity of 30,000 tons is in short supply. The company will continue to expand production capacity by 10,000 tons to meet the demand. Due to the drop of raw material prices in previous years, the prices of products continue to decline. Fluctuations, gross profit margin decline in the future with the steady rise in raw material prices, product prices rebound, gross profit margin is expected to rebound.
2.OLED mass production / LCD expansion drive BOE's future performance growth can be expected
On January 26, BOE released the "2017 Performance Forecast" saying the company expects to achieve a net profit attributable to shareholders of listed companies of RMB7.5 billion -78 billion in 2017, an increase of 298% -314% from the same period of last year. In 2016, the Company realized a net Profit 1.883 billion yuan.
In 2017, BOE further promoted strategic transformation and upgrading, steadily implemented the DSH business strategy and continuously promoted the display of product structure optimization and rapid deployment of new business areas. Along with the enhancement of core technology innovation capability, the market share of traditional products continued to be at a high level and new Application segmentation market has achieved remarkable results.
In addition, BOE continued to strengthen its lean management to enhance the import and delivery of high value-added products, and the overall profitability of the Company was stable at a relatively high level. Coupled with the booming economy of the semiconductor display industry in 2017, the operating results of the Company significantly increased over the same period of previous year .
Rapid expansion of large-size LCD production, TV panel shipments rose to second in the world
In 2017, TV panel shipments rose quarter by quarter, holiday sales momentum weakened due to high prices, but panel makers subsequently rebounded from the year-end sales due to gradual declines in prices. It is worth mentioning that in the second half of the year BOE's new production capacity at its 8.5 FTE factories in Fuqing and 8.6 F at HKC in Chongqing has been focusing on medium-sized TV panels (43 in and 32 in), driving the global LCD TV panel shipments to exceed expectations last year, reaching nearly 264 million, more than 2016 1.3% annual growth.
BOE TV panel shipments reached 43.81 million pieces in 2017, only a slight increase of 0.4% .But by the Samsung monitor L7-1 off factory, and Fuqing 8.5 generation line capacity in the second quarter of last year, heavy volume, driven 43-inch shipments Annual growth rate of 247.6%, so BOE shipping rankings climbed again for the first time standing on the second highest.
With the commissioning of the 10.5-generation line in Hefei, BOE has been at the forefront of global panel makers in technology, research and development, yield and volume production of high-generation lines. It is understood that the total investment of Hefei BOE 10.5-generation TFT-LCD production line is 45.8 billion Yuan, the main production more than 65-inch 8K ultra-high resolution LCD screen design capacity of 120,000 per month glass substrate (3370mm × 2940mm). The overall level of automation equipment and intelligent use of the core technology to achieve the industry The highest level, put into operation 'Hefei made' large-size ultra-high definition LCD display will be the world's leading.
At present, BOE already has four large-size 8.5-generation lines. The new Hefei 10.5-generation line was put into operation in December 2017 and the company has decided to build a 10.5-generation line in Wuhan to further consolidate the Company's dominant position in large-size LCDs At present, the panel resolution continues to increase, the popularity of 2K and the emergence of 4K, 8K panel makers in the manufacturing process and patents have to quickly follow the BOE in the LCD field of long-term deep plowing and technology accumulation, the company has successfully mass production 55-inch UHD, 65-inch 8K and other high-end products, value and profit margins increased significantly in the short term, the 2018 Summer World Cup will be held based on past experience, the holding of major sporting events will usually stimulate the sales of television that year.Company as a global The second-largest TV panel manufacturer in the shipments is expected to benefit from terminal stocking in the second quarter of 2018, resulting in further performance growth.
OLED layout effect gradually, new engine force soon
With the new Apple IphoneX OLED screen, the industry trend to be more clear, while the flexible OLED screen in full screen design unique advantages, will further help the OLED demand outbreak. Domestic enterprises in the field of OLED card far better than the LCD era, OLED demand Under the trend of sustained and rapid growth, the profit cycle is expected to be drastically shortened, and the BOE has laid the leading position by virtue of many years of technological accumulation, key equipment support and production schedule.
BOE Chengdu 6th generation flexible AMOLED production line was mass-produced on October 26, 2017. The production line is mainly used in the display of mobile terminal products and new wearable smart devices, etc. At present, BOE has provided products including Huawei, OPPO, vivo, millet , ZTE, Nubian more than 10 customers provide production screen for reference and use of the production line of mass production not only opened a new era of flexible display, but also indicates that Chinese enterprises began to lead the global AMOLED industry in the new display era .
In addition to the 6th generation flexible AMOLED production line in Chengdu, the 6th generation flexible AMOLED production line in Mianyang has also commenced construction. With the two flexible AMOLED production lines put into operation one after another, BOE A will have the ability to provide high quality flexible AMOELD screens to global brand manufacturers in the future According to Liu Xiaodong introduction, the company's flexible product planning will be gradual from the Edge phone to the entire screen frameless mobile phone, folding PAD, folding NB layout of the direction of promotion.
CLSA financial analysts believe that BOE to accelerate the production of OLED is expected to BOE ship 19 million smart phone OLED screen in 2018 shipments of 41 million in 2019. CLSA also said that China's major smart phones Manufacturers will launch the first smartphones featuring BOE OLED panels in February or March 2018. It would not be surprising if BOE announced a new OLED production line plan in the first half of 2018.
Although BOE is not the first panel manufacturer in China to develop AMOLED technology, BOE is currently in a good position due to its huge investment in recent years, and BOE will be able to surpass LG Display's capacity in 2021 to become the world's No. 1 Two major suppliers.
Enhance innovation ability and lead China to create
As a model of China's supply-side reform and innovation and an outstanding representative of China's manufacturing industry, BOE will continue to break the monopoly of foreign manufacturers and usher in an outbreak of performance in 2017. The number of patents surged by 62% year-on-year to enter the 2017 United States The number of patents granted TOP30, ranked No. 21. The company has been promoted to China's "core power", will continue to lead China's advanced manufacturing industry to a higher level.
According to OFweek Xiaobian observation network, in the Chinese science and technology industry, BOE is one of several R & D investment companies willing to spend money in. BOE R & D investment in 2015 up to 33.2 billion yuan, even in the most difficult time, BOE technology research and development accounted for Revenue ratio has also remained around 7%, but also continue to increase R & D investment each year, especially for technical personnel training.
Experienced the dark times brought by the concentrated liquid crystal panel production line put into production in 2005, the ups and downs in many industries such as the international financial crisis in 2008, and the technological innovation capability of the BOE appeared an astonishing effect, so that now the BOE is often Huawei Equivalent, and called the 'industry backbone.'
The latest data shows that in 2017, BOE added 8,678 new patent applications, of which invention patents exceeded 85% and the cumulative number of patents available exceeded 60,000. BOE has filed more than 3,000 new patent applications covering the United States, Europe, Japan , Korea, etc. 2017 Thomson Reuters Innovation Report shows BOE has become a global leader in innovation.
'The United States' ability to innovate in science and technology is evident in the world. "According to Li Xinguo, vice president of BOE and director of the Technology and Intellectual Property Management Center," We are benchmarking the world's leading companies and continuously strengthening their own innovative capabilities to enhance International Competence As you can see, in recent years, Chinese enterprises have seen significant improvements in their innovation and international competitiveness in high-tech fields and in some areas they have started to become leaders.
As a global leader in semiconductor display, BOE displays products are widely used in mobile phones, tablets, notebooks, monitors, TVs, automotive, wearable devices and other fields.
In the Internet of Things era, BOE has become an Internet of Things company that provides smart port products and professional services for information exchange and human health from semiconductor display technologies, products and service providers. In the original display and sensing business, Health services business extension, to the integration of software and hardware, application integration, service transformation.
In the recent year, BOE has accelerated the layout of its IoT and jointly released an intelligent interactive shopping mall with Intel to lay a '8K + 5G' industrial ecosystem with Huawei and build 'China Medical Silicon Valley' with Beihang and build a new retail ecosystem with Alibaba Etc. Wang Dongsheng believes that the Internet of things needs industrial chain cooperation and BOE will collaborate with more industrial chain partners to share new opportunities in the Internet of Things market and create new value.
Summary: BOE is expected to jump from the leader of China's display industry to the global semiconductor display industry giant in 2018 with the ramp-up of production capacity and the yield improvement after the new production line is put into operation. In addition, The forward-looking layout will bring diversified growth momentum to the Company, effectively reduce the cyclical fluctuation of the display industry and maintain a steady growth of the Company's performance. OFweek Display Network