According to the latest report released by Display Supply Chain Consultants (DSCC), the OLED panel production value in 2023 saw a year-on-year decrease of 4%, which was lower than the previous expectation of 9%. Moreover, there was a noticeable recovery trend in the latter half of last year. The report indicates that in the second half of 2023, many niche markets experienced a resurgence due to the continued improvement in excess inventory and the arrival of the back-to-school and holiday sales peak season, driving a 9% increase in OLED panel shipments. David Naranjo, Senior Director at DSCC, pointed out that with Apple’s entry into the OLED tablet market, OLED tablet shipments are expected to achieve triple-digit year-on-year growth in 2024.
This news has implications for several stocks in the display supply chain, particularly those involved in OLED technology and production. Companies like Samsung Display, LG Display, Universal Display Corporation (OLED), and BOE Technology Group Co., Ltd., which are major players in the OLED panel manufacturing sector, could experience shifts in their performance and stock prices.
Given the positive outlook for OLED panel shipments in the coming years, companies heavily invested in OLED technology, such as UDC, could see a boost in their financial performance. UDC, as a leading supplier of materials for OLED production, stands to benefit from increased demand for OLED panels. This could translate into higher revenues and potentially drive up the stock price.
Similarly, Samsung Display and LG Display, as major OLED panel manufacturers, may experience improved financial performance as the demand for OLED panels grows. Both companies have significant expertise and infrastructure in OLED production, positioning them well to capitalize on the anticipated increase in shipments. Consequently, investors may view these stocks more favorably, leading to potential gains in stock prices.
BOE Technology Group Co., Ltd., a Chinese display manufacturer, could also benefit from the growing demand for OLED panels. As the industry expands and more companies adopt OLED technology, BOE’s OLED panel production capabilities could become increasingly valuable. This could positively impact the company’s financial results and drive its stock price higher.
Overall, the outlook for OLED panel manufacturers and related companies appears optimistic, fueled by expectations of continued growth in demand for OLED panels. As a result, investors may consider these stocks attractive investment opportunities, anticipating potential gains in both financial performance and stock prices.