The oversupply of the panel market has a great impact on the company.
In the newly released semi-annual report of BOE, the company achieved operating income of 43.47 billion yuan in the first half of the year, down 2.54% year-on-year; net profit was 2.83 billion yuan, compared with net profit of 4.59 billion yuan in the first half of last year. Decreased by 38.3%.
Regarding the decline in performance, BOE's explanation is that in the first half of 2018, the global economy was running smoothly, but trade conflicts were frequent and the downside risks were increasing. The overall economic performance of China was stable, and the supply-side reforms were effective, but the external environment shocked. The domestic market has a certain impact. The overall growth of the panel market is lower than expected, oversupply, market prices all the way down. BOE believes that the display, tablet, notebook, smartphone, color TV, the five mainstream display panel market is basically saturated, growth Limited space.
The price of TV panels has been declining in the past year. In May and June of this year, domestic TV panel prices have fallen to near the historical lows of 2016, and it has not stopped rising until July of this year.
However, Li Yaqin, general manager of Qunzhi Consulting, told the First Financial Reporter that the TV panel price rebound is phased, and the TV panel industry has two years of 'hardship'.
Li Weihui, a senior analyst at Qunzhi Consulting's TV Industry Chain Research Department, said, 'We believe that as Chinese panel makers actively expand high-generation LCD panel production capacity, panel supply and demand is still surplus in the next few years.' Because of the second half of this year, next year A number of new high-generation LCD panel production lines were put into production. By the end of 2019, China's mainland construction of high-generation panel production lines (more than 8.5 generations) will reach 15.
According to analysts at Ovi Cloud, the market trend of follow-up TV panel prices will also need to see the sales of North America 'Black Friday' and China's 'Double 11' in the fourth quarter of this year, if there is no significant boost in global market demand. With the uninterrupted production of new production lines in the second half of this year and next year, the test of the panel industry will only grow bigger and bigger in the future. Because the global color TV market has basically entered the stock market, relying solely on the large size of the TV market to consume The increased production capacity is more difficult, and the future commercial display, new application display and other directions will continue to mature and expand, which will likely become a new opportunity for the panel industry.
So how do you survive the two years of 'hardships'?
BOE's choice is to expand the application of 'sea estuary' to provide a solution of soft and hard integration. On the one hand, with the mass production of Hefei 10.5 generation line, Wuhan 10.5 generation line planning, BOE will turn the production capacity of Beijing 5th generation line from panel to sensor On the other hand, increasing the capacity of foundry manufacturing and accelerating panel production capacity, its color TV OEM shipments have ranked third in the world in the first half of the year.
According to BOE, due to the rapid growth of applications and market segments, the product structure will be optimized in the future, accelerate the global competitiveness of its products, and promote the rapid development of the sensor industry, accelerate the construction of core competence of information technology to enhance profitability.
In order to seize the opportunity of application and market segmentation, in June 2018, BOE subdivided the original three business segments into seven business groups. Among them, the display and sensor parts business segment, subdivided into displays and sensors Business group, sensor and application solutions business group; IoT smart system business segment, subdivided into intellectual service business group, IoT solution business group, digital art IoT platform business group; smart health service business segment, subdivided into Mobile Health IoT Platform Business Group, Smart Health Service Business Group.