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The wave of OLED materials is booming

Both Huawei and Samsung plan to release a foldable mobile phone in February, which has led to a collective outbreak of OLED concepts in technology stocks. Yesterday, many OLED concept stocks opened at the daily limit. As of the close, the OLED concept stocks continued to expand, with 25 daily limit in the sector, accounting for nearly half of the 52 stocks in the entire concept sector.

CITIC Securities expects that the market size of OLED materials will expand rapidly with the increasing penetration of OLED panels in mobile phones (28.3% in 2018 → 43.1% in 2020) and TV terminals (1.1% in 2018 → 3.9% in 2020). From 2018 to 2020, the market size of OLED terminal materials is expected to be 209/262/456 billion yuan. When the penetration rate of OLED screen in mobile phones reaches 60% and the penetration rate in TV reaches 25%, the market size of OLED terminal materials is 171.90 billion yuan, which will reach the order of 100 billion yuan.

CITIC Securities said that the OLED terminal materials market has long been dominated by foreign companies, but in recent years the industry is changing. The localization drive mainly comes from the following factors: 1) independent research and development + foreign patent expiration, breaking through technical barriers; 2) panel companies have The demand for cost reduction; 3) The strategic level requires that core raw materials can be supplied independently. Driven by localization, a small number of domestic materials companies have the ability to produce OLED terminal materials. At the same time, BOE and other manufacturers have increased the product yield to more than 65%. After the improvement of the yield of domestic panel makers, it is expected to introduce domestically produced materials and increase the proportion of domestically produced materials.

Domestic companies are expected to transform from a front-end material foundry to a terminal material design manufacturer, cutting from 30% of Maori's OLED intermediates and crude products to 80% of high-margin end-materials. We expect 2018-2023, referring to the change in the localization rate of liquid crystal materials, the market size of OLED terminal materials localization is 0.6 billion yuan, 390 million yuan, 2.28 billion yuan, 9.49 billion yuan, 18.81 billion yuan, 27.5 billion yuan. Domestic OLED material manufacturers are expected to fully benefit.