The price of TV panels has dropped to a historical low, and BOE and other companies are facing challenges.

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 The price of TV panels has dropped to a historical low, and BOE and other companies are facing challenges.


The first financial reporter learned from AVC in May 9th that the price of the TV panel has fallen to or near the lowest point in the last wave of the price reduction cycle in 2016. It is expected that the price of the June year will continue to approach the cost line of the panel factory. Zhang Yu, senior vice president of the East, told the first financial reporter on 10 May that the market will always rise and fall, and the key to each enterprises product competitiveness and innovation, there is no weak market, only a weak product. Screen prices fall to historical lows According to Bian Zheng, an analyst at ori cloud network, the price of the TV panel has accelerated, mainly because the new LCD (LCD) high generation panel factory has been producing and climbing since 2017, and the global LCD panel capacity is speeding up, and the global demand for the whole world, including China, has not been effectively improved. After the end of the April World Cup World Cup stocking, the situation of oversupply of panels was even more severe, which accelerated the decline of panel prices. This round of price cuts covers all major dimensions of the panel. In May, the 32 - inch, 40 - inch, 49~50 - Inch panel price will drop by $2 in May, and the 43 inch panel price will drop by 4 dollars and the 55 inch panel price will continue to decline, and even the super size 65 inch panel is no exception, according to the May 9th forecast. Chinas 10.5 generation line capacity is gradually climbing, while each panel factory is increasing production of 65 inches by increasing production capacity, while the terminal market is less than expected by 65 inches of television. The price pressure of the 65 inch panel in the panel plant is increasing, and is expected to fall by 10 dollars. Bian Zheng said. Next, the price of the panel is flat or continues to fall, depending on the confidence of the color TV enterprises in the third quarter when the global stocking season is coming. In the whole year, the pressure of oversupply of panels is persisting. Capacity expansion is too fast Li Yaqin, general manager of QQ consulting, also told the first financial reporter that the price of TV panels in May this year dropped by 25%~30% compared with last May. The drop is greater than expected, which is related to irrational investment. The main contradiction is that the growth of panel supply is faster than the growth of panel demand. In the first quarter of this year, global color TV shipments increased by 7%, but the supply of panels increased by 8%~9%. It is estimated that the demand area of the global TV panel will increase by 6% in 2018, and the supply area will increase by 8%~9%. At present, there are five new generation and built 10.5 generation lines (including 11 generation lines) in the world. Among them, Hefei 10.5 generation LCD panel line will be manufactured in March this year and will build another 10.5 generation line in Wuhan; Huaxing optoelectronic is building 11 generation of LCD panel lines in Shenzhen; LGD will be in the 10.5 generation of OLED panel line in Han Guo Po state; Foxconn is building the 10.5 generation of LCD panel line in Guangzhou. In addition to the above projects, Foxconns 10.5 generation line in the United States, the 10.5 generation line of Huke in Zhengzhou, and the second generation 11 generation lines in Shenzhen are also being planned. Chinas panel enterprises continue to climb in this round of capacity expansion. Data from group intelligence showed that in the first quarter of 2018, the shipments of the LCD TV panel in the East had jumped to the top in the world, although the shipments were still in LGD and Samsung. The panel industry is of scale effect, the larger the scale, the more the right to speak, the better to survive, so the Chinese panel enterprises must continue to expand their scale if they want to be based in the industry. The needs of the development of Chinese enterprises plus the capital support of local governments have led to an increase in supply in the short term. Bian Zheng said. Li Yaqin predicts that the global television panel industry will still face the pressure of oversupply in the next two or three years as the above projects are put into production and production in succession next year and after the next year. Therefore, the industrys investment expansion should be cautious and rational. Profitability is facing a challenge The price cut of this panel is as fierce as that of the previous price rises. The profitability of the main panel factories began to enter the downstream channel from the second half of last year. Cui Jilong, another panel industry analyst, said the worlds first LGD, the worlds largest panel in large size panels, fell into a loss in the first quarter of this year. For the foreseeable months, the profitability of the main panel plants was not optimistic and faced a big challenge. In the first quarter of 2018, the revenue of Beijing also fell 1.32% to 21 billion 570 million yuan, and net profit fell 16.34% to 2 billion 20 million yuan, and Huaxing photoelectricity also dropped 1.19% to 6 billion 460 million yuan in the first quarter of 2018. By raising capacity, reducing cost and optimizing product structure to reduce the impact of panel price fluctuation, the profit and tax depreciation amortization was 2 billion 760 million yuan before the same period. The increase is 9.86%. Last year, the profitability of the panel factory was good, and the performance of the color TV factory was not satisfactory. This year, the production capacity of the panel is oversupplied, and the color TV factory hopes to get a good screen price as far as possible, so as to improve its performance. IHS analyst Wu Rongbing told the first financial reporter. In this context, Beijing Orient and Huaxin optoelectronic are actively adjusting the product structure, reducing the output of the 32 inch panel, increasing the supply of 43, 49, 55 inch panels, and promoting the development of large size color TV. The 65 inch panel, Hefei BOE 10.5 generation line production yield rate has reached 70%, output is larger than expected, but the large size TV market to boost the process, so the price drop. But Wu Rongbing believes that in the long run, this demand for stimulating super size TV is good. In the first quarter of 2018, the 55 inch panel shipments increased by nearly 30% in the first quarter of 2018, the 65 inch panel shipments increased by 136%, and the 4K TV panel shipments increased by 34% over the same period. At the same time, BOE and Huaxing are also working on small and medium-sized flexible screens for smart phones and other mobile end products. When the LCD TV panel industry is shrouded in a gloom of gloom, global OLED television has doubled in the first quarter of 2018, reaching 510 thousand sets and occupying the high-end market. European brands LOEWE and Arcelik also joined the OLED television camp, and Hisense will also produce OLED TV in the second half of this year, giving priority to the Chinese and Japanese markets. At present, LGD is the only supplier of OLED TV panel in the world. Huaxing optoelectronics is also actively tackling printing and display technology. In April this year, the first 31 inch OLED TV screen was printed, and it is expected to achieve industrialization in three years.