The automotive screen display market is growing rapidly, and the separation of screen devices is driving changes in the industrial chain, and the trend of larger screens, multiple screens, and intelligence is driving rapid growth in the automotive screen display market. The domestic automotive display market in 2022 is 87.3 billion yuan. It is expected to exceed 15.5 billion yuan by 2025, and the CAGR (2022-2025) will reach 20%.
Under the separation of screen machines, the industrial chain was changed from the original panel manufacturer - module manufacturer - system integrator - automaker to “panel factory+module manufacturer” - automaker. With the penetration of domain controllers and the trend of one core and multiple screens, automakers are more willing to cooperate with panel manufacturers or module manufacturers during the model development stage.
Short-term highlights: Integrated design industry leadership, full chain production helps transform Tier 1 touch display integrated design: the company's LTPS In-Cell and Mini LED In-Cell can achieve integrated touch display integration to meet customer needs for lighter, narrower frames, and have cost advantages; lock in upstream core resources: establish joint ventures with BOE Precision Electronics and Shentianma to achieve better costs, technology updates, faster response, better quality, and more guaranteed delivery; Full chain production: the completion of the construction of the Nantong production base means, on one hand, The company switched from outsourced contract manufacturing to independent production. On the other hand, it also enabled the company to have full chain production capacity. This will give the industry a competitive advantage over downsizing and cracking down, and accelerate the Tier 1 transformation process. At present, the transformation has received orders from many automakers, and continues to blossom on a targeted basis.
Medium- to long-term highlights: Under the new national standard, CMS welcomed 0-1 growth. The company took the lead in laying out the new national standard with a first-mover advantage was officially implemented on July 1, 2023. The general trend is for CMS to replace traditional rearview mirrors. Due to its significant safety attributes, it is expected that it will rapidly penetrate the commercial vehicle market. It is estimated that the domestic CMS market will reach 7.6 billion yuan in 2025. Currently, there are few domestic CMS suppliers, and Huaan Xinchuang's pioneering layout has a first-mover advantage.