Industry Supply And Demand Pattern Improves, Shenzhen Textile A May Usher In A Rapid Release Period Of Production Capacity In The Second Half Of The Year

Recently, Shenzhen textile a (000045) announced that the company held a performance presentation meeting. According to a research report released after the meeting of analysts, the supply and demand pattern of the company's industry has been improved, and the company will usher in a period of rapid release of production capacity in the second half of the year.

According to public information, Shenzhen textile a was founded in 1984, formerly known as Shenzhen textile industry company. In 1995, the company carried out strategic transformation and upgrading, from traditional textile and garment processing industry to LCD polarizer industry. At present, the company focuses on the LCD polarizer field, its own property management business and high-end textile and clothing business. From the company's historical financial reports, polarizer products are the main revenue source of the company in recent years. The company's semi annual report shows that the company's polarizer product revenue accounted for 92.77% of the company's total revenue in the first half of 2021.

According to the data of sigmaitell, the average size of LCD TV panel shipment in the world increased by 1.8 inches in 2020, and is expected to grow by 1.5 inches to 48.6 inches in 2021. With an average size of over 1.5 inches, the capacity of the 200K G8.5 generation line is expected to exceed. Zou Lanlan, an electronic researcher at Great Wall Securities, said in a research paper that the current trend of large-scale will help to reduce the production capacity of high-generation panels, and will directly increase the demand for polarizers.

Great Wall Securities said in the research report that the polarizer benefited from the increase in the proportion of local panel production capacity, and its shortage of raw materials will accelerate the process of polarizer localization. With the strong rise of local leading panel manufacturers, the localization process of upstream raw material supply system is expected to accelerate. In addition, at present, there is a shortage of raw materials for panels. The shortage of raw materials such as glass substrate and driving IC is expected to continue. The supply chain management strategy of head enterprises has shifted from cost orientation to strategic cooperation. Local raw material suppliers have ushered in the import window. The new production capacity expansion is expected to be digested smoothly, which will benefit the local raw material supply chain.

According to the public information, Shenzhen textile a has seven mass-produced polarizer production lines, covering TN, STN, TFT, OLED, 3D, dye film, touch screen optical film and other fields. Among them, line 7 is a 2500mm ultra wide production line, which was put into production in July and entered into mass production stage. According to the Research Report of Great Wall Securities, under the background of the gradual improvement of panel supply and demand pattern since May 2020, the price of polarizer also has a slight upward trend, which will bring considerable profit elasticity for Shenzhen textile. The production capacity of the company's large-scale TV polarizer industrialization project on line 7 will be gradually released in the second half of the year, and the polarizer business of the company will maintain a rapid upward development trend.