When a new market opens, the stock price gets a premium. Since the end of last year, display related stocks have been wriggling. Apple’s iPhone 12 equipped with Korean OLED (Organic Light-Emitting Diode) panels was sold ’10 units per second’, and tablet PCs and notebook manufacturers began to install OLED panels. It is analyzed that it is worth investing in display equipment companies as additional investment is expected due to the boom of small and medium-sized OLED panels this year.
Small and medium-sized OLED facility investment notice
LG Display(18,800 -1.31%)Closed at 18,800 won, down 1.31% on the 5th, but increased by about 23% compared to the beginning of last month. In anticipation of a turnaround this year, the increase in iPhone 12 sales was also a boon. Apple installed OLED panels on all models for the first time in the iPhone 12 series, a 5G (5th generation) smartphone. Samsung Display, a strong player in the small and medium-sized OLED market, and LG Display, a latecomer, are supplying all OLED panels to Apple. The iPhone 12 set an all-time record. According to market research firm Strategy Analytics (SA), last year’s iPhone 12 sales reached 52 million units in about two months.
Shinhan Investment Corp. predicted that this year’s iPhone OLED panel shipments will increase by 60-80% compared to last year. This is because 5G smartphone sales are expected to increase explosively in the US and China. Compared to LCD (liquid crystal display), OLED panels have excellent contrast ratio and color reproduction rate, and are specialized in 5G smartphones because of their fast response speed.
It’s not just smartphones. The display industry is eager to sell OLED panels to premium notebook manufacturers. To meet the demand for gaming laptops. Global notebook makers such as HP Dell Asus have been showing notebooks with OLEDs since last year. So Hyun-cheol, a research fellow at Shinhan Financial Investment, predicted, “If OLED notebook sales surge this year, Apple will have no choice but to change its display strategy for the LCD iPad and LCD MacBook series.”
This is the reason for the analysis that domestic display companies will begin to review small and medium-sized OLED investments in the second half of this year. Research Fellow So said, “It is the time when we need to be interested in OLED equipment makers again.”(40,300 +2.03%)And AP system(25,150 -1.37%)Recommended. Due to the sluggish display industry last year, neither companies have recovered to the level of their share prices at the beginning of last year. “There are not many industries that open new markets in the era of low growth, but the small and medium-sized OLED industry is an area where the market is growing,” explained the CEO of Macquarie Investment Trust Management’s Equity Management Division (CIO).
Pay attention to the expansion of Exynos AP market share
It is also noteworthy that the supply chain of the industry is expected to expand its market share in the global market. Kiwoom Securities is Samsung Electronics(83,900 +1.08%)It is predicted that the Exynos series, a mobile application processor (AP) made by the company, will expand its market share this year. The Exynos series hasn’t made any noticeable performance in the market since 2017. The Exynos 990, which was released in the first half of last year, also decreased its share in the Galaxy S series, its smartphone, due to performance problems. Samsung Electronics’ global AP market share fell from 16% in the third quarter of 2019 to 12% in the third quarter of last year.
This year, we aim to counterattack. Park Yoo-ak, a researcher at Kiwoom Securities, explained, “This year’s flagship products, Exynos 2100 and 1080, are expected to recover their market share with outstanding process competitiveness, product performance, and price competitiveness.” The high-end product Exynos 2100 is expected to perform on par with the rival Qualcomm Snapdragon 888. Although the performance is similar, the strategy is to increase the market share by increasing price competitiveness. Exynos 1080, a mid-range product, targets the Chinese smartphone market by being installed not only in the Galaxy A series but also in China’s Oppo Vivo Xiaomi.
Kiwoom Securities is one of the Exynos supply chain Micron(11,100 -3.90%), Nepes Arc(55,000 +2.80%), Tessna(55,900 -1.58%) He advised that it is worth noting. It is expected that Hana Micron will share the Exynos package test, and Nepes Arc and Tesna will share the Exynos EDS test. Researcher Park predicted, “As the effect of launching new products from Exynos is expected from the first quarter of this year, related companies’ earnings will also enter a growth trend from the beginning of the year.”
Reporter Jaeyeon Ko [email protected]