Huawei's smart screen will be unveiled soon, and the Mini-LED industry chain will benefit.

/kloc-in July of 0/5, Huawei brand glory announced at the new product exchange meeting that it would release the glory smart screen product in early August. Zhao Ming, president of Glory, said, "Smart screen is not TV, but the future of TV. Glory's smart screen product positioning is to become the new center of the family and let the family return to the living room. "

As the carrier of innovative technologies such as 5G and Internet of Things, smart screen will show a new experience in residents' homes. At the same time, it will also change the original TV industry, and the relevant industrial chains may benefit from this change.

According to statistics, at present, the market size of LCD TV industry in China is about 654.38+050 billion yuan, with an average annual sales volume of 45-50 million units. From the perspective of industry cost composition, LCD panels account for more than 70%. In LCD panel, LED backlight module accounts for the highest cost, which shows the important position of LED module in LCD panel. With the introduction of smart screens and smart TVs, the first area that will benefit in the future may be the LED field.

From the current mainstream technology of LED industry, there are two mainstream technologies: Mini-LED and Micro-LED. They are recognized by the industry as the future development direction of LED technology, and they are also new products of LED display technology upgrading after LED indoor and outdoor display screens and small LED spacing. The difference between them is that Mini-LED is a transitional scheme between traditional LED and Micro-LED. Mini-LED can also be simply understood as an upgraded version of small-pitch LED (at present, the pitch of Mini-LED can be below P 1.0, so the pixels are higher).

In the downstream application scenario, Mini-LED can be used as the backlight of LCD panel to improve the display performance of LCD panel, thus competing with OLED panel. It is widely used in large and medium-sized realistic panels, such as laptop screens and large-screen TVs. The potential application fields of Micro-LED are small-sized RGB high-resolution display screens, such as mobile phones, watches, VR and so on. It can be seen that Mini-LED is the transition of Micro-LED, but at present, the application fields of these two technologies are different. Moreover, it is extremely difficult to transfer a large number of micro LEDs (transferring a large number of LED chips to the display substrate). Mini-LED can use the existing technology to develop a new generation of products, which poses a potential competitive threat to large-size AMOLED. Therefore, in the short term, Mini-LED is the most promising product for backlight and display, and there is a greater chance for large-scale commercial use.

In terms of market scale, assuming that 4% of TV panels in 20 18 adopt Mini-LED backlight, the demand for Mini-LED chips will reach 654.38+000 billion, corresponding to the demand for 2-inch chips of about 2 million. It is predicted that by 2023, the scale of Mini-LED in the field of large-size display will exceed 60 billion yuan, and the total market space will reach 654.38+0 billion US dollars.

As a new generation of backlight technology, Mini-LED can significantly improve the display performance of LCD. Compared with other LED technologies, it also has the following advantages:

1, brightness, contrast and color reproduction are better than ordinary LED, comparable to AMOLED；;

2. Meet local dimming requirements and better HDR performance;

3. Compared with traditional LED backlight, the thickness of LCD screen is significantly reduced;

4. Life and reliability are better than AMOLED; ;

5. Compared with AMOLED, it has cost advantage.

Based on the above five points, it can be seen that Mini-LED will show greater potential in the application of new products and has higher cost performance. In the future, the increase of penetration in the field of big-screen TV will be a high probability event.

Among A-share listed companies, companies involved in mini LED industry chain mainly include: Sanan Optoelectronics, Guoxing Optoelectronics, Ruifeng Optoelectronics, Zhouming Technology, Lianchuang Electronics, Mulinsen and so on.

Among them, Sanan Optoelectronics (600703) is the world's largest manufacturer of LED epitaxial wafers and chips, with leading technology in China and leading LED chips. The company benefited from the outbreak of LED backlight, lighting, display and other sub-industries, and its performance achieved rapid development. Financially, the gross profit margin and non-net profit margin of sales have been stable for many years, leading the industry. The company has certain advantages in technical level, management level and scale.

At present, mini LED chips have been shipped in small batches, and the company plans to start construction of mini LED production line on 19. Considering the huge influence of Mini-LED and Micro-LED on LED industry, the upstream chip enterprises have a high certainty of benefit.

Guoxingguang Electric (002449) is the global leader in display packaging, with high-end product positioning and brand and technical advantages. With the increasing trend of pixels with small spacing per inch, the demand for high-end packaging lamp beads has exploded, the company's orders are full, and the annual small spacing capacity has doubled.

At the same time, the company is also a packaging enterprise, with sufficient technical reserves of Mini-LED and Micro-LED. The company has benefited from the rapid development of small-spacing LEDs. At present, the Mini-LED technology is developing rapidly and the market is gradually released. And the four-in-one Mini-LED has taken the lead in shipping in China and is expected to become an enterprise that benefits from the development of Mini-LED.

Ruifeng Optoelectronics (30024 1) has been in the stage of traditional LED capacity adjustment and new product layout in recent two years. It has strong technical strength in Mini-LED display technology and has the first-Mover advantage. With the steady commercialization of 5G in the future, large bandwidth and high network speed will definitely promote the continuous improvement and rapid growth of the ultra-high-definition video industry chain, as well as high-definition video represented by mobile phones and televisions.

As a vital link in the industrial chain, the terminal is expected to benefit first. The Mini-LED backlight scheme developed by the company can achieve the display effects of 4K, 6K and 8K in terms of image quality, saturation and contrast, and the product life and cost performance are obviously better than those of the organic light-emitting diode display scheme, which is expected to become the most suitable choice for mainstream manufacturers' ultra-high-definition display terminals. Based on this logic, it is expected that Mini-LED technology will be one of the most important performance drivers of the company in the next two years.

Risk warning: downstream demand is less than expected, and the progress of new product development is less than expected.

(Author: Zhang Xu Practice Certificate: A06806 17 100004)

(Article source: Jufeng Finance)

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