The price of television panels is expected to return to warm early in 2020, and the cycle will last for a full year until 2021, according to a new report by Credit Suisse.
The japanese and south koreans, who account for 6% of the world's market, see a fairly rapid shift in product structure, a sustained contraction in capacity and a gradual exit from the low-margin product market, a scenario that will last more than a season or half a year.
However, mr rui stressed that the lcd market remained pessimistic and that supply would remain oversupplied by 2021. Overall, overall shipments of overall tv panels will fall 4% to 276m from a year earlier in 2020,32 inches of which will cut production quickly due to a lack of profitability, and the size of the entry-level tv will increase to 40~43 inches directly, and the volume of panel shipments will grow 11% year-on-year, even in the u.s. market, thanks to the support of the 8th generation factory, the entry-level product will reach 50 inches.
But in the second quarter of the year, mr. rui expectse's 55-inch tv panel shipments to fall 10% year-on-year to 41 million tablets. Although chinese second-tier producers such as chinese pandas and huike will expand their production of 55-inch products, overall output will continue to fall as a result of less efficiency and more korean production cuts.
And for larger sizes, such as 65 and 75 inches, will continue to be exported from the 10.5 generation plant, most notably for demand in the chinese and u.s. markets, especially orders from jingdong and tcl huaxing.
At present, more than 65 inches of large panels make up nearly 10% of the overall market, and this year will be expected to increase to 16% to 45 million tablets. And the technology gap in this market is gradually narrowing, although in terms of high-end specifications, such as wide color gamut, high dynamic range, high refresh rate, narrow border technology, there is still a gap in China.
However, this year's consumer budget for panel consumption has not improved, cost-effective will remain the main consideration, the future chinese manufacturers are expected to continue to expand market share. This, of course, is good news for the supply chain as a whole, and Credit Suisse has now improved its ratings to be better than the broader market.
It is worth noting, however, that mr. rui is still more pessimistic about yoda's prospects, arguing that there is limited room for its share-price gains and that lgd is still neutral because its balance sheet is too weak.