At the end of last year and the beginning of this year, the strong panel companies are facing severe 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. Can Chinas leading enterprises, such as BOE and Huaxing photoelectricity, which are expanding the capacity of the TV panel, be able to smooth down this downward cycle? 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. 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. Oversupply 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%. Li Yaqin said. 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. 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. However, Wu Rongbing believes that in the long run, this demand for stimulating super size TV is good. Source: first financial responsibility editor: Bai Xin _NT4464 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. However, Wu Rongbing believes that in the long run, this demand for stimulating super size TV is good.