Expansion of OLED Panel Demand... Attention Needed on Materials and Equipment Stocks

[Asia Economy Reporter Minji Lee] As demand for OLED panels is expected to grow in the second half of the year, there are opinions that interest in domestic materials and equipment companies should be expanded.

According to the industry on the 25th, global OLED TV sales in the first quarter of this year reached 1.19 million units, an increase of about 90.7% compared to the same period last year, with the North American market alone increasing by 180.4%. OLED TVs have made remarkable progress in the premium TV market. Soh Hyun-chul, a researcher at Shinhan Financial Investment, said, “In developed countries, OLED TVs are overwhelming LCD TVs in contrast ratio and color reproduction,” adding, “Disney-affiliated studio producers are simulating home viewing environments with OLED TVs.”

OLED panels are expanding from smartphones and TVs to tablet PCs, laptops, and PCs. OLED panel installation has also begun in automobiles, and Apple has announced plans to equip iPads with OLED panels. This is analyzed as an effort to grow the premium tablet PC market by installing excellent OLED panels for augmented reality, virtual reality, and gaming in the iPad. In the mid to long term, Apple is expected to equip MacBooks and iMacs with OLED panels as well. The fact that the initial volume of iPhone 13 was set at 90 million units, about 20% more than the previous year, is also positive.

Accordingly, interest in OLED materials and equipment companies should be increased. Researcher Soh said, “Growth opportunities are emerging for OLED materials and equipment companies, and it would be good to expand interest in top picks such as Duksan Neolux, LX Semicon, SFA, AP System, SK Materials, and Hansol Chemical.”

On the other hand, a conservative approach is needed for the LCD industry. This is because the price of LCD TV open cells is expected to decline further as demand slows. Earlier, due to the U.S. government's strong unemployment benefits policy, consumer and TV purchases surged explosively, causing the price of 32-inch LCD TV panels in June this year to rise sharply by 170% compared to May last year. However, as vaccination expands mainly in developed countries, reopening demand for travel, casinos, and clothing is increasing, while TV demand is beginning to slow, so the decline in LCD TV open cell prices is expected to deepen in the second half of the year. Researcher Soh said, “It should be noted that the stock price of Taiwan’s AUO, which operates only in the LCD business, has recently shown a downward trend.”

This content was produced with the assistance of AI translation services.