BOE Shows The Status Of Leading Enterprise

BOE Shows The Status Of Leading Enterprise

Mar 24, 2017

Panel prices remain stable, the new line to boost revenue

The supply and demand of global panel market are tight in 2016, the panel price of various size rebound. BOE and other panel industry benefit from the rising market, the rapid increase in capacity utilization, strong shipments. We expect that this wave panel prices will continue until mid 2017, although the second half of the new capacity supply, but limited callback space. BOE capacity utilization will be maintained at more than 90% level, while the company flexibly adjust product mix to achieve profit optimization. With the production line of Fuzhou G8.5 2017Q2 into mass production, and further improve the company's production line structure and revenue contribution. 16Q4 performance has ushered in the inflection point, we believe that the company has a long-term profitability and new production line, and it will promote future revenue growth.

Grasp market opportunities

We expect the average size of the global TV will increase 1.8 inches to reach the level of 44 inches in 2017, the demand of application for other terminals ,such as display, is stable. The use of large size high-definition TV and OLED display, resulting in high generation LCD and OLED capacity in short supply. BOE 2015 accurately grasp the direction of the market, contrarian large-scale investment, Fuzhou G8.5, Hefei G10.5 and Chengdu G6 generation (flexible OLED) line from this year, mass production, leading to create growth momentum.

DSH business planning is cclesr, hard and soft integration

The company long-term work display manufacturing business, is committed to "display, sensor, artificial intelligence, big data" technology development and accumulation, in 2014 the company launched D (display), S (Intelligent Systems) and H (health services) the strategic planning of the three major business groups, combined with their own advantages in resources and technology to expand the business space.

At present, the company's business intelligence system has contributed revenue, health services layout positive. We believe that S and H business market space is huge, long-term development can be expected.

BOE as a domestic flat panel display manufacturing, production line layout is complete, customer resources are stable. Based on the recent boom of flat-panel display industry and judge the company's main revenue split, we believe that the company's main business gross profit level has returned to 22% to 25% levels of 2013-2015, and the revenue growth rate is expected to remain at around 25%.