Double blessing of technical capital! Is BOE Black Technology MLED incense?

Author / Baked buns under the stars

Edit/Spinach’s Starry Sky

Typography / Taro Balls under the Stars

Nothing is unachievable.

Just in the past two days, BOE (000725) announced that it has developed an active-driven MLED (divided into Mini LED and Micro LED) transparent display product with ultra-high transmittance (overall transmittance reaches more than 65% ) . What concept? This screen can display the picture while keeping the objects behind the screen at a glance, which can come in handy in some occasions such as AR glasses and exhibitions.

MLED see-through screen

The black technology independently developed by domestic players hopes to be like a dark horse in the future.

I don’t know if it is because of the stimulation of this incident, the Mini LED sector has risen for 8 days in the last 12 days, and it has begun to show a momentum of recovery, with an obvious butterfly effect. In addition, according to data from professional institutions, in the first eight months of this year, more than 30 companies have laid out the Mini/Micro LED track, and the amount of investment and financing is as high as 42 billion yuan .

The growth rate of the MiniLED sector

Under the background of heavy investment and breakthroughs in R&D results, it is expected that the domestic Mini LED market size will increase from only 1.6 billion yuan last year to 40 billion yuan five years later , with a compound growth rate of more than 50% . Compared with traditional LEDs in the context of relatively flat stocking demand in traditional peak seasons, as the next-generation force in the display market, MLEDs have a heavy responsibility on their shoulders.

And players’ transcripts under the spotlight are indeed dazzling. For example, Jingsheng Electromechanical (300316)’s operating income and net profit attributable to the parent in the first three quarters increased by 86% and 81% respectively year-on-year . Players such as Luxshare Precision (002475) and Dongshan Precision (002384) have also increased their net profit by more than 30% , which is a good example of a benign interaction between capital and industry.

So, is this track really that glamorous? Today, the author takes you into the MLED track.

1. Big waves wash away the sand, there will always be gold

Let’s first talk about the fighter Mini LED in MLED (essentially an LED chip with a size of 50-200 microns ), which can be used in the field of backlight and direct display, especially in the field of backlight, in terms of brightness, contrast, color reproduction, etc. It is better than ordinary LED backlight display, and can even have a direct dialogue with OLED.

The evolution process of LED technology path

In today’s capital market, we often hear the term ” first year of commercialization “. It was worthy of the name last year when it was used in Mini LED. Many players have begun to use its backlight products, and they have begun to officially increase the volume, which means that they have passed the After the 0-1 process, the 1-100 fast-starting stage was started. Compared with the domestic market mentioned at the beginning, the market size of the international market has increased from US$150 million last year to US$2.32 billion three years later, with a compound growth rate of more than 100% . This attraction is no less than what food brings to you. Be tempted.

Mini LED product application (partial examples)

From the perspective of downstream segments, the TV and notebook computer markets will vigorously promote the expansion of Mini LED demand. Take TV as an example. According to statistics, the overall TV shipment in 2021 will be 210 million units, of which Mini LED TV shipments will be It has reached 2.1 million units, and the proportion of Samsung products exceeds 70% . What reason do domestic players have to slack off?

Next year Mini LED backlight panel application (prediction)

Even though it has become an absolute leader in the industry, Samsung has not given up its pace of innovation. Two months ago, Samsung even released 89-inch and 110-inch Micro LED TVs. Although the development of Micro LED is difficult now, as a hope for the future, Samsung is also actively preparing for a rainy day, striving to have the first mover on the next track Advantage.

2. The forest is getting bigger, and there are all kinds of birds

After talking about demand above, let’s look at the supply side. If we open the MLED industry chain, we can find that it is a long industry chain. From upstream LED raw materials, LED epitaxial growth, LED chip manufacturing, to midstream packaging, and finally to downstream applications, everyone performs their own duties. . But the manufacturing of chips is undoubtedly the most critical link in the entire industry chain.

List of Mini LED Industry Chain

However, from the analysis of the domestic situation, the value of the downstream industry chain accounts for nearly 85%, and the value chain of upstream chips accounts for very little. Therefore, more domestic warriors are needed at the top of the pyramid.

Taking the packaging process in the midstream as an example, from the perspective of players, the domestic Mini LED industry is gradually maturing, but it has not yet entered the stage of mass production. Most players are still in the process of research and development and small batch trial production . Few players can reach hundreds of billions of dollars in revenue. Some professional organizations have also comprehensively evaluated the comprehensive capabilities of packaging players from different dimensions. As one of the earliest players to develop packaging technology, Ruifeng Optoelectronics has already been ahead.

Overall Competitiveness Ranking of Mini LED Backlight Packaging Players

3. Where is the potential of potential stocks?

Today, under the background of weak macro economy and consumer electronics demand, the overall prosperity of traditional LED is flat, but Mini LED has become an expected dark horse, and it has become a dazzling obvious in the LED market.

The driving force behind this, in addition to the enhancement of the R&D and manufacturing capabilities of players after ten years of sharpening their swords, has a lot to do with the change in the demand of leading terminal players such as Apple and Samsung in the downstream. Ushering in the first year of development is not accidental, but inevitable.

It can be asserted that on this track with long slopes and thick snow, whoever can seize the opportunity now will be able to better dominate in the future.

Note: This article does not constitute any investment advice. The stock market is risky, and you need to be cautious when entering the market. There is no harm without buying and selling.