Guosen: Global revenue of large-size LCD panels in February increased month-on-month and year-on-year, optimistic about companies like Boe Technology Group (000725.SZ).

Guosen released a research report stating that it is optimistic about leading domestic panel companies such as Boe Technology Group (000725.SZ) seizing the opportunity of China's consumption upgrade and localization era, gradually improving profitability by leveraging scale effects, cost advantages brought by high generation lines, industry discourse and pricing power brought by leading market shares. At the same time, the rise of the LCD industry has strengthened the competitiveness of domestic TV brands and ODMs in the overseas market. Guosen's main points are as follows: LCD Industry Monthly Report: Panel demand in the off-season is not weak, global revenue of large-size LCD panels increased month-on-month in February. Market & Performance Review: From March 2025 to now, the panel (Shenwan) index has fallen by 13.39%, while the average gross profit margin of major Chinese LCD manufacturers in 3Q24 has decreased by 0.77% on a year-on-year basis, reaching 14.91%. As for valuation, as of April 11th, the total market value of A-share panel industry is 477.38 billion yuan, with an overall PB (LF) of 1.37x, ranking at 44.6% in the past five years. Performance Review: According to Omdia data, the monthly revenue of global large-size LCD panels in February was 5.54 billion US dollars, with a month-on-month increase of 3.15% and a year-on-year increase of 18.88%. Tianma Microelectronics, TCL Huaxing, Boe Technology Group, Caihong Display Devices, and Infovision Optoelectronics (Kunshan) Co., Ltd. saw changes in revenue. The average gross profit margin of these major Chinese LCD manufacturers in 3Q24 decreased by 0.56% month-on-month to 14.91%, with a net profit margin of 1.75%. Price: In March, LCD TV panel prices rose month-on-month, and it is expected that various sizes of LCD TV panel prices will remain stable in April. Television: In March 2025, the prices of 32, 43, 50, 55, and 65-inch LCD TV panels were $39, $65, $104, $130, and $178 per panel respectively, with month-on-month growth rates. Omdia predicts that in April, the prices of these panels will remain stable. TrendForce indicates that in April, brand factory inventories continued to increase, downstream demand may weaken, although panel manufacturers have plans to adjust production capacity to stabilize supply and demand, but there is currently no clear adjustment in production capacity. Laptops: In March 2025, the prices of 10.1-inch (tablets), 14-inch (laptops), and 23.8-inch (monitors) LCD IT panels were $16.4, $26.2, and $44.3 per panel, with most prices remaining stable, except for the 23.8-inch monitor which rose by 0.5% month-on-month. Omdia predicts that in April, the prices of these panels will remain stable. Supply & Demand: In February, the global shipment area of large-size LCD panels increased by 28.27% year-on-year, with TV, Monitor, Notebook, and Tablet panels all seeing growth in shipment area. On the supply side, the bank predicts that the global production capacity of large-size LCD panels will increase by 2.31% in 2024 compared to 2023, with fluctuations throughout the quarters. As for demand, in February 2025, the global shipment area of large-size LCD panels increased by 28.27% year-on-year, with significant growth in TV, Monitor, Notebook, and Tablet panels. The bank believes that as the LCD industry gradually stabilizes capacity, with overseas manufacturers closing down and selling production lines, the industry's market share is expected to further consolidate. The advantage of concentrated market share on the supply side will help in controlling LCD TV panel prices. The cyclical nature of the industry is gradually fading, and the growth attributes are becoming more prominent, leading to a strengthening of the profitability of LCD panel companies. Risk Warning: Risk of lower-than-expected demand for display devices; Risk of price fluctuations in display devices; Risk of production equipment and raw material supply.