The price of LCD panels fluctuates at a high level, and the performance of leading manufacturers continues to meet current expectations for the whole year

Core reminder: Recently, a number of domestic panel manufacturers have released performance forecasts for the first half of the year. BOE expects to achieve a net profit of 12.5 billion to 12.7 billion yuan in the first half of this year, a year-on-year increase of 1001%-1008%. Another panel leader, TCL Technology, predicts that in the first half of this year, it will achieve a net profit of 6.5 billion to 6.9 billion yuan, a year-on-year increase of 438%-471%.

Undoubtedly, the performance of the panel industry in the first half of this year has far exceeded market expectations. Especially in the second quarter, the net profit of the panel duo’s parent company exceeded that of the entire year of last year, which also set a record for the two companies since their listing. The best single quarter profit performance.

However, display manufacturers may be about to face pressure to stop rising panel prices in the second half of the year. The latest research report of the research institute DSCC pointed out that after reaching the peak in June and July, panels of various sizes will begin to decline. It is expected that 32-inch TV panels will fall by 20% in the second half of the year, even for the 75-inch panels where the supply-demand relationship is the tightest in the industry. It will also fall by 6%.

This has also led to the market's concerns about the future trend of the panel industry after panel manufacturers released the interim report. But now it seems that, at least for leading companies, panel prices stop rising and falling and will not have much impact on their performance.

Industry differentiation has intensified, leading companies are leading high-profile

After the panel Shuangxiong announced its first-half performance forecast, it received a relatively enthusiastic market response. As of noon closing on July 16. TCL Technology's stock price rose 5.36% to close at 8.45 yuan. BOE A shares rose 3.32% to close at 6.53 yuan.

From a single quarter perspective, in the first quarter of this year, TCL Technology achieved a net profit of 2.4 billion yuan attributable to its parent. Even if calculated based on the lower limit of 6.5 billion yuan in profit for the first half of the year, TCL Technology’s net profit attributable to its parent in the second quarter is still as high as 41. 100 million yuan, an increase of 170% from the previous month. Also based on the lower limit of 12.5 billion, BOE’s net profit attributable to the parent in the second quarter was 7.3 billion, an increase of 40.3% from the previous quarter.

In contrast, the profit growth of domestic midstream manufacturers such as Shenzhen Tianma and Rainbow Optoelectronics is far less than that of panel duo. According to Shenzhen Tianma’s previous performance forecast, it is expected to achieve a profit of 1.13 billion yuan to 1.6 billion yuan in the first half of the year. If calculated with reference to its net profit of 519 million yuan in the first quarter, its net profit in the second quarter increased by 17% from the previous quarter.

This growth rate basically overlaps with the trend of panel prices in the second quarter. The latest research report of Guosheng Securities pointed out that in the second quarter of this year, the average price of TV panels increased by 15%-25% from the first quarter of 2021, and the average price of IT panels increased by 10%-20%. Therefore, all panel manufacturers are basically able to Ensure that profit growth in the second quarter will increase from the previous quarter.

However, if you take the panel duo as the reference standard, it is not difficult to find that the operating performance of BOE and TCL Technology not only significantly leads the industry, but even far exceeds the increase in panel prices.

The reason behind this, on the one hand, lies in the strong capacity climbing ability of the panel duo in the current cycle. TCL Technology pointed out in the announcement that in the second quarter of this year, its large-size product shipment area increased by 24% year-on-year, and its large-size operating income increased by over 130% year-on-year.