What kind of upheaval is the industry facing as display panel giants frequently make capital moves?

How can panel companies improve profits after depreciation peaks in the AI era?

Our reporter: Yan Fengfeng Edited by: Wu Yongjiu

The display panel industry’s two giants have recently been busy with frequent capital moves: BOE has rolled out three consecutive share repurchase plans, marking the fifth time it has acted within the past year and a half; TCL Technology, meanwhile, has unveiled a private placement and M&A plan worth nearly 10 billion yuan, aiming to take full control of core assets. A reporter from The Daily Economic News found that, against the backdrop of the industry’s giants making frequent capital moves, the current industry is also undergoing some changes—such as rising product prices, increasing industry concentration, and depreciation peaking among leading companies.

The Daily Economic News reporter, posing as an investor, contacted BOE and TCL Technology separately. Regarding the rise in TV panel prices in the first quarter, a relevant person from TCL Technology said in the call, “The first quarter was indeed a period of moderate increases. But after that, we’re not really able to directly draw a conclusion on market conditions. On the demand side, it’s possible that in the first quarter, prices rose somewhat because downstream companies increased inventory for stocking up. In the second quarter, there may be some added pressure, but the overall upward trend in prices remains unchanged.”

A relevant person from BOE said, “Some of our LCD production lines will gradually reach the end of their depreciation period. There may also be additions in the future, but we judge that depreciation will have peaked in 2025.” A relevant person from TCL Technology said, “In 2025, depreciation really reaches a peak; after that, it will gradually decline. In 2026, there will be some decrease, but the decline may not be particularly obvious. In short, after 2025, it’s a process of gradual decline in depreciation, and the magnitude may be larger around 2027 and 2028.”

For the full text, please see: Display panel giants’ frequent capital moves: BOE launches intensive buybacks, TCL Technology unveils a major restructuring—what kind of changes and twists is the industry facing?

The Daily Economic News