Trinity Spectrum (002876) In-depth Research Report: Localization of Panel Material Speed-up Polarizer Leads to Flutter

Trinity Spectrum (002876) In-depth Research Report: Localization of Panel Material Speed-up Polarizer Leads to Flutter

Leading domestic polarizers, covering for the first time, giving “Strongly Recommended” rating as a leading company in the field of domestic polarizers, mainly for the development, production and sales of polarizer products. The main products include TFT and black and white polarizers.Is one of the few domestic TFT-LCD polarizer production capacity of enterprises.

At present, the global LCD panel production capacity is constantly shifting to the mainland. Continental panel manufacturers have already mastered the say in the LCD industry. Localization of panel materials is expected to accelerate. The 合肥夜网 company’s continued expansion of production capacity will help fully benefit from the large-scale development of the downstream panel industry.

It is expected that the company’s net profit attributable to the parent company in 2019-2021 will be 0.



71 ppm, corresponding EPS is 0.



61 yuan, currently expected to correspond to PE of 2019-2021 is estimated to be 89/28/20 times.

Covered for the first time and given a “strong recommendation” rating.

Mainland manufacturers have the right to speak in the LCD industry. The localization of upstream polarizers will be the general trend in 2019. The supply and demand of the LCD industry will accelerate. Major Korean panel manufacturers have grown significantly for several consecutive quarters and are gradually exiting LCD production capacity. Representatives include BOE A and Huaxing.The domestic enterprises are rising in an all-round way, they have mastered the right to speak in the LCD industry, and their market share will continue to increase.

We believe that the rapid growth of mainland panel production will significantly stimulate the demand for polarizers, and localization of polarizers as the core material of panels will be the general trend.

We have estimated the number of polarizers required for domestic LCD panels under construction and already in production: under full production, the domestic demand for LCD polarizers is forecast to be 4.

3.8 billion square meters per year. According to IHS data, the annual production capacity of polarizers in 2020 will only be 2.

7.0 billion square meters, the gap between supply and demand 杭州桑拿 reached 2.

3.1 billion square meters per year. Considering that most of domestic production capacity has been replaced by Japanese and Korean companies, there is huge room for domestic substitution.

Approved major customers, continued to expand production, and benefited deeply from panel capacity transfer. The company is one of the competitive advantages of the domestic polarizer industry. Major downstream customers include BOE A, Shentianma A, Tongxingda and other domestic mainstream panel and module manufacturers.With the concentration of downstream customers, the company will achieve rapid development with the overall rise of downstream enterprises.

The company continues to expand its production capacity. In the initial mass production of the 1490mm polarizer production line in Hefei, due to factors such as the introduction of large customers, the capacity conversion caused a certain impact. We judge that the production capacity and yield will improve significantly in 2020, plus the Hefei plant’s 1330mm production line., Shenzhen Longgang 1490mm production line and subsequent planned production lines, the company’s future production capacity accumulation, for the follow-up development to make up for the basis of long-term continuous growth.

Risk warning: Downstream demand is less than expected, and domestic-made replacement progress is less than expected.