Orders in the second quarter are safe, polarizer prices remain stable

Core Tip: Chengmei Materials (4960) said that although the panel boom is conservative, the company's order visibility in the second quarter is no problem, and it is even expected to be better than the previous quarter. Regarding whether the conservative panel boom affects the price of polarizers, Chengmeicai believes that the price sensitivity of polarizers is not as high as that of panels, and the impact is relatively limited.
Chengmei Materials (4960) said that although the panel boom is conservative, the company's order visibility in the second quarter is no problem, and it is even expected to be better than the previous quarter. Regarding whether the conservative panel boom affects the price of polarizers, Chengmeicai believes that the price sensitivity of polarizers is not as high as that of panels, and the impact is relatively limited.

AUO expressed a more conservative view on the panel industry and company operations in the second quarter than at the beginning of this year, and whether panel prices have fallen sharply has caused panel manufacturers to bargain prices for polarizers. Chengmeicai pointed out that the panel is highly sensitive to price, but the sensitivity of polarizer is low, and the price of polarizer is still relatively stable now. In addition, although the price of upstream materials for polarizers has risen, the evaluation has little impact under the depreciation of the Japanese yen and the New Taiwan dollar.

The visibility of orders in the second quarter was not a big problem, but Chengmeicai also pointed out that under the influence of inflation, interest rate hikes, city closures and wars in the world, the terminal demand was weak, and some customers also revised down the demand for some orders in the third quarter. The magnitude is about 10%.

Chengmei Materials also continued to expand the shipment of high-end products. In the second half of the year, new customers such as mainland China and Japan were added to the automotive products. The proportion of revenue from high-end products in the second half of the year could reach 15%.

Chengmeicai participated in Touch Taiwan 2022 this year, and launched the "Gibbon Film" solution that can be mounted on the global ultra-wide display; Metaverse "AR/VR" thin and high-definition solution; automotive products equipped with "extreme black technology", "moth eye" Technology”; and solutions in four areas of “Wide Viewing Soft Skin Film”.

"Wonderful big screen, enjoy the big vision" Chengmei Materials and the global giant 3M jointly developed "Gibbon Film", effectively breaking through the production limit of traditional polarizer width, using the principle of optical turning, successfully developed ultra-large wide absorption and reflection type The type of integrated polarizer brings the possibility of continuous enlargement of the panel. "Gibbon Film" has excellent energy efficiency, in addition to improving brightness by more than 20%, it can reduce energy consumption by up to 20%. By co-creating green products with the international giant 3M, Chengmeicai will provide customers with environmentally friendly green materials for the next generation.

In addition, 2022 is the first year of the metaverse. Chengmei Materials will display advanced optical film and polarizer AR/VR application modules, which can effectively improve product brightness, reduce color shift and excellent fit through leading technology. The control capability helps AR/VR devices save energy, image clarity, and suppress ghosting area. Combined with the light and thin folded optical path of the photo lens group, it brings consumers the impression of "being in the real world, and the world is turning because of you".