OLED leading stocks soared

　On May 5, UDC (Universal Display cor PA, stock code OLED) rose 23.87%, breaking the $100 mark.On May 8, UDC's share price continued to rebound, peaking at $116.85. The main reason for the stock price explosion is the substantial growth of its performance.n the first quarter of 2017, the company's operating revenue increased by 87% to US $55.6 million, of which the revenue from materials increased by 92% to US $46.6 million,Meanwhile, the revenue forecast for 2017 was raised to 260-280 million US dollars, with a year-on-year growth rate of 30% - 40%. UDC is Samsung's OLED material supplier. It has authorized and approved 4200 patents,The company also benefited from the patent licensing of OLED materials. The company's performance changes also reflect the situation of the whole OLED industry. The substantial growth in the first quarter reflects the accelerated growth of the OLED industry.Stimulated by it, OLED concept performance in a shares was also strong, up 2.31% yesterday, earning enough attention from the market. Among the constituent stocks, qianglingxincai (300429, Guba), rainbow (600707, Guba) and Puyang Huicheng (300481, Guba) rose by the limit, while 12 stocks, including Zhongying Electronics (300327, Guba), shentianma A and oufeiguang (002456, Guba), rose by more than 3%.

　Analysts pointed out that OLED has been applied in the field of mobile phones as early as 2010, but the promotion is not ideal due to yield and cost problems. With the emergence of more application scenarios such as VR and smart bracelet, and the continuous progress of process technology, the cost has decreased significantly, and large-scale applications have gradually opened up. UDC's explosive growth may mean that the whole OLED industry is on the eve of industrial explosion.

　OLED industry will meet explosive period

　n 2016, the global AMOLED mobile phone panel shipment volume reached 370 million pieces, a substantial increase of 41.2% compared with 2015. In addition to Samsung, oppo, vivo, Huawei, Jinli, Meizu, Lenovo and other top ten brands in China contributed 26% of the share. In addition, Apple's new products this year will adopt OLED screen, or promote the outbreak of OLED applications in the field of mobile phones.

　With the development of large-scale effect and technology, the yield of rigid AMOLED screen has reached more than 80%, and the cost is lower than that of ltps-lcd. At present, the yield of flexible screen is still about 60%, so the cost is slightly higher. In the future, with the yield rising, the cost will also decline. At present, OLED application market has made a good start. Wearable devices are the breakthrough, mobile phones will be the breakthrough point, and penetration will gradually rise. In the future, LCD will gradually decline, OLED hard screen will be relatively stable, and OLED soft screen will grow rapidly.

　Li Jia, an analyst at CITIC Securities, pointed out that, according to IHS statistics, Samsung's OLEDs accounted for 90% of the total in 2015. In the first quarter of 2016, Samsung's shipments reached 87.35 million pieces, accounting for 96.2%. Since then, Samsung's shipments have continued to rise, reaching 98 million pieces in the second quarter and 99.7 million pieces in the third quarter. Apple will launch OLED mobile phones in the 10th anniversary of this year, and has ordered more than 100 million OLED screens from Samsung, which makes Samsung's capacity supply more tight and difficult to meet the needs of other terminal manufacturers. The contradiction between exuberant demand and insufficient production capacity is prominent, which is a huge opportunity for panel companies. The major panel companies all over the world have turned to OLED production lines, especially domestic panel companies have made greater investment in OLED. At present, the construction of OLED production line is in the initial stage except Samsung, especially for domestic manufacturers. Generally, the construction of the first production line will go through a relatively long process of process exploration, and then the second, third and fourth production line will be introduced more quickly. This means that the next will usher in the peak period of OLED production line investment and construction, which will be a significant opportunity for equipment manufacturers.