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2019Q1 global display panel market summary: low demand, large size acceleration, competitive landscape has changed

In the first quarter, the traditional off-season of display panels, superimposed on the high inventory of the whole machine manufacturers, the demand for brand stocking was weak, and the panel prices continued to fall. In order to counter the impact of the price decline, some panel manufacturers transferred some of the main display size capacity to TV and PID applications. Overall, global display panel shipments declined significantly in the first quarter of 2019, and fell for the first time in the past five quarters. According to Sigmaintell data, global display panel shipments totaled 34 million units in the first quarter of 2019, down 8.8% from the previous month and down 2.5% year-on-year.
2018.Q1~2019.Q1 Global LCD panel shipments and year-on-year growth rate (Mpcs, %)

The competition pattern of panel makers is relatively stable, and CEC-Panda is growing against the trend.

From the perspective of panel manufacturers' shipments, the structure is still relatively balanced and stable. In the first quarter, BOE ranked first in terms of shipments. In terms of shipping area, LGD ranked first.

2019.Q1 Global LCD panel shipments (unit: %)

2019.Q1 global LCD panel shipment area ranking (unit: %)

Sigmaintell's analysis of the performance of each panel manufacturer in the first quarter is as follows:

BOE shipments were 7.75 million units, down 13.9% from the previous month and down 15.3% from the same period last year. It is mainly small and medium-sized, with 24% and below accounting for over 90%. Affected by the downturn in the B2B market, shipments of 21.5 inches and below have declined significantly. Therefore, BOE has been actively deploying medium and large size and narrow frame products since the beginning of 2018. In the trend of large-scale display, the main force also extends from 21.5 inches to 23.8 inches.

LGD shipments were 7.69 million units, down 5.9% from the previous month and down 1.4% year-on-year. In the first quarter, LGD actively adjusted its product structure, and its shipments of 23.8 inches and above increased by about 10% year-on-year. Driven by large-scale active shipments, LGD's overall quarter-on-quarter decline was the smallest.

AUO shipments were 6.3 million units, down 6.6% from the previous month and up 1.1% year-on-year. Its 27-inch product line has a complete product line and a stable customer base, and shipments continue to grow steadily.

Innolux shipped 6.17 million units in the first quarter, down 10.4% from the previous month and down 5.1% from the same period last year. Its product line relies on small and medium size, the main size is 23.6 inches and below. Overall, the performance of Group's first quarter is more affected by the market's off-season.

Samsung shipped 3.39 million units in the first quarter, down 19.6% from the previous quarter and down 4.7% year-on-year. Samsung mainly focuses on medium and large sizes, with 24 inches and above accounting for more than 50% of its total shipments. The strategy is based on high value-added products such as curved surfaces and e-sports, and this year, it actively expands its domestic and international B2B market share.

CEC Panda's total shipments were 2.43 million units, an increase of 5.9% from the previous month and an increase of 46.7% from the same period last year. CEC Panda is the only panel maker in the display panel market in the first quarter with a significant year-on-year growth. Its main force is 23.8 inches, 21.5 inches, and will also mass produce 23.8 inches in the Chengdu plant in the second quarter.

CSOT has a total shipment of 320,000 pieces, the main size is 21.5 inches, 32 inches, and the current product planning has layout on both e-sports and curved surfaces.

The average size is 23.8 inches higher and becomes No.1 for the first time.

In the first quarter, the display panel market was significantly larger. According to Sigmaintell data, the average size of display panels has climbed to 23.1 inches since the second quarter of 2018. In the first quarter of this year, the average size of display panels rose again to 23.3 inches. From the size ratio of 23.8 inches, the difference of 2% share for the first time shipped more than 21.5 inches to become the largest size of display panel shipments, an increase of over 30%.

In the first quarter, the main force sizes declined in different degrees, and the small size fell by more than 10% year-on-year. However, large-size shipments rose steadily, with 27-inch growth of 19% year-on-year; affected by the market demand for e-sports and the gradual recovery of the domestic Internet cafe market, 31.5 inches and above still experienced small growth in the off-season.

Q1’17~Q1’ global average display panel shipment trend in 19 years (in inches)

Q1’17~Q1’19 global display panel shipment size structure trend (unit: %)

Prices continue to fall, the decline narrows

According to Sigmaintell data, display panel prices continued to fall in the first quarter, but the decline began to narrow. In terms of single-quarter decline, the 18.5-inch market is weak due to the downturn in the B2B market. The panel factory is not actively shipping, and the price is relatively stable. The decline in the first quarter is less than 1 US dollar; the 21.5-inch price cut in the fourth quarter of 2018 is 2 US dollars. In the first quarter of this year, the panel factory adjusted its capacity allocation response. In the first quarter of this year, the decline has narrowed to less than 1.5 US dollars. In addition, the large-size decline has narrowed from about 8 US dollars in the fourth quarter of 2018 to about 4 US dollars.

Inventory decommissioning initial results 2nd quarter panel price structural differentiation

Overall, the display panel market in the first quarter did not perform well, panel makers continued to face profit pressure, and brand manufacturers actively reduced inventory. According to Sigmaintell data, although the international brands represented by Dell and HP are still weak, the shipments of independent display market in mainland China have more than doubled in March, up 13% year-on-year, exceeding market expectations. The demand for Internet cafes and B2B market has rebounded. At the same time, due to the “618” stocking, the brand stocks have become more active. It is expected that the market demand will gradually pick up in the second quarter. At the same time, the supply side continues to adjust the product structure. Sigmaintell expects that the price of display panels will be structurally different in the second quarter. The price of small and medium-sized panel panels will remain relatively stable, and large-size and high-resolution products will still face downward pressure on prices.