Forecast: BOE’s OLED panel shipments will increase by 50% this year

According to NH Investment&Securities' forecast, BOE's OLED panel shipments will increase by 50% this year.

Calculated in terms of shipments, BOE's share of the global smartphone OLED market continues to increase, from 1% in 2018 to 4% in 2019, 8% in 2020, and its market share reached 6% as of May 2021. This is mainly due to the increase in BOE's OLED panel production capacity and the impact of customer diversification.

Currently, BOE operates two 6th generation OLED factories, namely Chengdu B7 and Mianyang B11, with an estimated total production capacity of 90K/month. In addition, BOE's Chongqing 6th-generation AMOLED production line B12 completed the main plant capping in July last year. The production capacity is expected to reach 45K/month, and mass production will have to wait until after the second quarter of next year. It is understood that the new production line will use LTPO technology to reduce the power consumption of OLED panels.
< br> In addition, in addition to strengthening its influence on Chinese customers, BOE has also increased its supply of OLED panels to global customers. Its current number of global customers has increased from 2 in 2019 to 5 in 2020.

In the first quarter of 2021, BOE secured Apple as a major customer through the supply of panels for iPhone 12 (6.06 inches). Looking to the future, BOE will continue to focus on expanding its overseas customer base and increasing its global market share. NH expects the company's OLED panel shipments to rise from 17 million units in 2019 to 38.7 million units in 2020, and to 57.9 million units in 2021.

Although the panels JD supplies to Apple are still mainly for older iPhone models, it is expected to provide approximately 11.12 million OLED panels for iPhone 12 in 2021. However, the agency believes that BOE’s shipments and share of new iPhones in Apple’s current panel supply chain will continue to grow.