Global Demand for TVs Likely to Surge in 3Q20
The authors are analysts of Shinhan Investment Corp. They can be reached at johnsoh@shinhan.com and chank@shinhan.com, respectively. -- Ed.
32" LCD TV panel price to rise 17.3% QoQ in 3Q20 on hike in global TV demand
Consumers in developed countries, due to the COVID-19 pandemic, are spending their summer vacation at home watching big screen TVs. Market researcher Omdia thus expects global demand for TVs to increase 21.8% QoQ to 55.6mn units in 3Q20. We, however, believe actual demand will surpass that projection, driving up the price of 32-inch LCD TV open cell panels by 17.3% QoQ to USD40.7 in 3Q20 as a result.
Successful release of iPhone12 in 4Q20 to benefit Korean OLED suppliers
Apple is preparing to release four OLED-screen iPhone 12 models in 4Q20. Strong sales are expected for iPhone 12 and iPhone 12 Maxmodels, with price tags likely similar to previous LCD models at USD649-849. Domestic companies supplying OLED panels and materials for iPhone 12 smartphones stand to benefit from the successful release of new models in 4Q20.
Top picks: LG Display, Seoul Semiconductor, Duk San Neolux, Silicon Works
We recommend focusing on LG Display as operating earnings are set to rise into positive territory in 3Q20 with OLED operations back to normal. Non-memory chipmaker Silicon Works also deserves attention in our view. Meanwhile, Seoul Semiconductor shares are likely to rally with LED market conditions rapidly recovering on the steep upturn in LCD TV panel prices this quarter. In addition, Duk San Neolux, the domestic leader in OLED materials, is expected to see sharp improvement in earnings from 2H20.
