Introduction:

The year 2020 is the year of 5G mobile phones and the year of OLED display. With its advantages of fast response speed and power saving, OLED screen will become one of the most important core products of 5G mobile phones. In the OLED subdivision industry chain, the gross profit margin of terminal materials is about 70%, of which the most important part is luminous materials, mainly blue materials with low luminous efficiency and short life, which has become the main bottleneck of the wide application of OLED materials. This article will help you sort out the investment opportunities of the OLED subdivision industry chain in detail, from comparing the advantages and disadvantages of OLED and LCD to the core materials of OLED.

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Smartphone sales have declined in recent years, but Samsung can still maintain its leading position in the world, and Huawei has bucked the trend. In addition to the mobile phone market share, Samsung ranks first in the world all the year round, as well as its DRAM memory and OLED screen. For example, Samsung accounts for 40% of the global memory market share and 90% of the global OLED screen.

According to the report of Ping an Securities Research Institute, when we disassemble the cost of a mobile phone, we can get: the cost of the mobile phone is mainly in the screen, chip, memory and camera.The price of the screen is the most expensive.。

Mobile phone OLED screen VS LCD screen:

According to the backplane technology of mobile phone panel, it is mainly divided into four categories: flexible OLED, rigid OLED, low temperature polysilicon LTPS-LCD and amorphous silicon α-Si-LCD.在OLEDIn the supply pattern of mobile phone panels, Samsung occupies a close position in the industry, whether it is rigid, flexible or folding panels.90%The share of.

For the screen, the core problem is how to fingerprint the screen. At present, OLED is mainly optical fingerprint unlocking (direct touch screen unlocking), which mainly places the optical sensor CIS on the OLED display screen, and then receives the light and shade refracted by the fingerprint to unlock the screen. The unscreenings of LCD phones are mainly through the phone's rear fingerprints or traditional touch fingerprints (similar to Apple Inc's home button).

Note: Samsung's OLED (including rigid OLED and flexible OLED) is close to 90% of the global market share.

注：

* at present, more than 1 billion mobile phones use LCD rear fingerprints or traditional touch fingerprints. LCD fingerprint leading company in the global industry is the domestic Huiding technology, and its company is also the first supplier of Android fingerprint recognition.

* an engineering machine with off-screen fingerprints of LCD has been exposed on 2019Q3 Huawei. Huiding Technology says it will begin mass production of LCD fingerprints at the end of 2019.

OLED screenMarket conditions:

Judge the relationship between the strength of the manufacturer of mobile phone display screen:Comprehensive yield。

Samsung has an overall yield of 90% in the field of OLED screens, but only 80% of flexible OLED screens. The yield of flexible OLED of other companies is between 65% and 75%. Low yield will limit enterprise capacity utilization, in addition, flexible OLED production line investment is larger, and is a new line, high depreciation, so the yield leads to low capacity utilization, OLED production line is difficult to make a profit.

In the supply pattern of OLED mobile phone panelSamsung is still in the absolute lead.Samsung accounts for nearly 90% of the industry, whether it's rigid, flexible or folding panels. Samsung shipped 287m rigid OLED panels in 2019, of which about 50 per cent were for Samsung's own use, while the rest of the production capacity was mainly absorbed by manufacturers such as OPPO, Vivo, XIAOMI and Huawei. In addition, flexible OLED panels are mainly supplied to Samsung's flagship models and Apple Inc's two models, and a small number of them will be supplied to Huawei's new flagship Mate 30 Pro from 2019.

Note: * LG flexible OLED has entered Apple Inc's supply chain

* according to the latest news from the photoelectric display online, the good rate of JD.com Fang's flexible OLED folding screen is too low, resulting in a poor supply of Huawei. Huawei will replace the Samsung display screen in the second generation folding screen.

LCD屏Market conditions:

On the face of it, OLED panels will become mainstream, but LTPS-LCD has great advantages in the performance and cost of low-and middle-end models, especially with the introduction of post-fingerprints or traditional touch fingerprints in LCD fingerprint recognition, so LTPS-LCD will maintain its market share in low-and middle-end mobile phones in the future. In addition, Q3 Huawei has developed LTPS-LCD off-screen unlocking technology in 2019, and Huiding Technology began mass production at the end of 2019. But in the end, it was amorphous silicon α-Si-LCD that gradually withdrew from the market, and BOE suffered (because BOE is the largest maker of amorphous silicon α-Si-LCD mobile phone panels).

The global low-temperature polysilicon LTPS-LCD competition has changed from the previous eight to five (JDI, Shentianma, Huaxing Optoelectronics, Jingdong and Youda Optoelectronics), and Shentianma leads the industry with a market share of 21%.

Investment opportunities for OLED material end：

Light-emitting layer material asOLEDThe most important part of the material, and the part with the highest gross profit marginIt directly determines the display effect and service life of the OLED panel. At present, among the mass-produced luminescent materials, red and green are phosphorescent materials, and blue light is fluorescent materials.蓝At present, optical materials have the advantages of insufficient luminous efficiency and short lifetime.OLEDThe main bottleneck of wide application of materials。

OLED front-end materials account for about 30% of the total cost of OLED screen products, but the gross profit margin of OLED terminal materials is 70%. High gross margin means high barriers to entry, few competitors, and high bargaining power for both upstream and downstream, so the terminal material of OLED is in the blue ocean market.

Source: Ruihua New Materials prospectus, Oriental Wealth Research Institute

Note: UDC is a light asset model, and its income is mainly patent licensing and outsourcing processing.

From the market concentration point of view, red and blue phosphorescence materials concentration is very high, is the blue sea market, the threshold is high, competitors are few.

Summary-Investment opportunities:

Samsung: OLED is the core component of 5G mobile phone. In the supply pattern of OLED mobile phone panels, whether it is rigid, flexible or folding panels, Samsung has an absolute advantage and is in the leading position that can not be shaken for a long time.

Deep Tianma: in the LCD display screen in the leading position, the product positioning in the low and medium mobile phone consumer end. As the fingerprint technology under the LTPS-LCD screen continues to mature, the advantage over the rigid OLED display is gradually reduced, and the deep Tianma LCD display has an absolute advantage in cost.

The core luminescent materials in the OLED industry chain mainly come from Japanese luminescent materials such as Guoguang Industrial Co., Ltd., American Dow Chemical, etc.