Affected by the trade war between China and the United States, coupled with the slowdown in economic growth this year, Zhao Qinxiao, chairman of the Xuhui Ying material of the metal mask factory, revealed that the progress of the new factory in the mainland OLED has indeed been delayed.
According to the current order grip, it may be delayed for half a year to one year, so it is challenging whether next year's revenue and profit growth rate can be maintained at this year's level, but the long-term trend is optimistic. The OLED panel replaces the TFT LCD trend unchanged, the legal person is optimistic that the operation performance of Xuhui next year will continue to create new initiatives.
Zhao Qinxiao said that at present, there are two mainland OLED mainly hard products, the rest are mainly flexible OLED, and then the new investment of mainland OLED factory will be based on 6 generation line. At present, it has been supplied to five 6 generation line OLED panel factories, and the investment amount of each line is as high as 40 billion yuan.
At present, these OLED manufacturers in mainland China have the financial support of national or local governments, so it will be imperative to continue to develop. Recently, TFT LCD has set off a wave of production reduction, whether it has further affected the expansion of mainland OLED plants. In response, Zhao Qinxiao revealed that the Sino-US trade war may make some mainland OLED factories delay the speed of building new plants, and the market atmosphere is relatively conservative, resulting in a gap between the real production capacity of the OLED panel and the estimated figures, but the trend of OLED replacing TFT LCD in the future will remain unchanged, and it is estimated that this wave of new plants will reach between half a year and one year.
Xu Hui will hit an all-time high this year, with a gross profit margin of 44.07 percent in the first half of this year, with a earnings of NT $1.85 per share. The company expects the fourth quarter to be the same as the third quarter and will continue to hit a new high next year. Optimistic about the long-term production expansion demand of mainland OLED manufacturers, Xuhui has also added new investment in Yellowstone Factory, the first phase of the project has been put into production in the second half of this year, using only one third of the area, as customer demand continues to grow, Yellowstone Factory will also continue to start the later production expansion plan.
At present, Xuhui has a market share of up to 40% in the mainland OLED market. Apart from Xuhui, no other manufacturer can provide precision metal mask, mesh, parts regeneration, equipment component manufacturing and other services at the same time.