LGD Another bet: Panel industry contrarian Investment

LG launched a flexible OLED panel for smartphones. South Photographers Wang Haiyan "LG officially announced that the mass production of smart phones with flexible OLED panels, the four-quarter market will be able to see the product." Soon June, senior director of LG Public Relations, told reporters that the product had replaced the traditional glass substrate with a plastic base plate. This is the global panel giant LG's "contrarian" bets on the next generation of new display technology. At this time, the Chinese market because of the end of the policy dividend, weak demand, the global market is facing the problem of economic malaise. DisplaySearch released data showed that in October, panel prices continued to fall, which unit area TV panel prices fell 4 to 6 U.S. dollars. At the same time, the domestic Beijing-Orient, Suzhou Samsung, Guangzhou LGD also has a high generation line in the construction, the industry supply and demand relationship is not optimistic, the rise of overcapacity theory. LG said that in the history of the company's development, LGD had been investing in a number of industry lows and proved to be a successful choice, focusing on differentiated technology and future technology response challenges. OLED for 2015 reserve profit power South reporters in the new technology products scene, LG launched the smart phone with flexible OLED panel size of 6 inches, weighing 7.2 grams, thickness of 0.44 mm. In addition, the flexible OLED panel using film packaging technology, and the back of the panel to paste Protective film, so that the panel can be bent, not easy to break. Earlier, the brothers company LG Electronics and Samsung Electronics has just launched OLED TV in China. "Now the real OLED era has been ushered in. "Soon June said that by 2015 OLED will reach the scale of development, the market share is significantly increased." "We expect 2016 OLED panels to account for a 10% share of the entire panel industry," he said. OLED market is forming, the price is high inevitable, at present LG is striving to improve the yield rate, in order to reduce prices as soon as possible to achieve product popularization. "It also means that in the short term OLED is not a profit driver," he said. China LCD Network Director Zhang Xingang that OLED TV, and mobile phone flexible display panel this year and next two years also difficult to form a significant profit contribution, is expected to become a profit after 2015, "relatively speaking, LG for the future technology to make a relatively large reserve." OLED technology is also a large area of domestic enterprises. "However, in the next two years, LG and other panel companies will also have to face a poor industry impact." Soon June said that the end of the Chinese government subsidy policy, the color TV market has shrunk to a certain extent, market demand declined, the third quarter of this year due to the national day promotional season demand, a small increase. It will not be a problem to achieve the expected sales volume and shipments throughout the year, but the overall trend in the industry will not improve significantly in the future, "we have a conservative estimate of the market and expect oversupply next year." Guangzhou Project investment unchanged industry will faceYu Qui of the situation for panel investment also has implications, recently there are rumors that LG and Samsung began to compress the Chinese panel investment plan, LG has planned to reduce the investment in Guangzhou to 1.8 billion U.S. dollars, capacity also to repair to 60,000 pieces/month. In this respect, LG Business Support Center Senior Vice President Li Bongyu to South reporters stressed that the investment in Guangzhou project will not change, the production of LCD panels will not change the plan, the first half of next year is expected to be put into production, the second half of the production, "but the specific capacity of the market needs in accordance with the changes in the Li Bongyu said that the Guangzhou factory is mainly used for the production of TV with large size panels, and in South Korea will not have large size panel investment, so the Guangzhou plant in the LG the status of the overall strategy is very important, "we will be the latest technology to apply in Guangzhou factory." He also said he was not worried about oversupply in the LCD panel market, "The local production line in South Korea will be converted to OLED and other new technologies to upgrade, for LG itself, LCD capacity has not increased significantly." In addition, LG said, other manufacturers are also moving some of the capacity from LCD to OLED, which will also reduce the LCD supply. Soon June said that LG is very concerned about the rise of China's mainland panel enterprises, the future will accelerate the pace of development of differentiated technology, in addition to TV, display, mobile phones, tablets and other major areas, will also explore public displays, professional display and automotive display and other new markets. Short-term focus on ultra-high-definition, OLED and other high-end products strategy, in the next period of time, can be curved, foldable, can be curled, transparent display, the naked eye and so on a variety of display products are future-oriented storage technology. Market Theory 2014 Panel market is now "down" pressure LG one of the pressure is the rapid rise of domestic panels. In addition to the Beijing-Orient and huaxing photoelectric 8.5 generation line, domestic panel enterprises are also actively investing in new production lines, including the Beijing-Orient Hefei and Chongqing, two 8.5 generation lines, it is said that Huaxing photoelectric is also expected to finalize 8.5 generation panel production line 2nd phase project. Next year's situation is expected to be slightly worse than this year, the price will generally be "down" adjustment, the new capacity will not be too much, LG and other companies are still expected to remain profitable. "4K Super HD products will be the main source of profit." South reporter Wang Haiyan South Korea report