Shentianma A: It already has full-size coverage of in-vehicle products. The 8.6th generation line is expected to be capped in H2 in 2023

September 14, 2022

Core tip: Shentianma A (000050.SZ) said in an institutional survey that the company now has the ability to cover the full size of in-vehicle products, and the proportion of medium and large size projects has increased rapidly, with 10+ to 40+ inch large screens
On September 2, Shentianma A (000050.SZ) said in an institutional survey that the company now has the ability to cover the full size of in-vehicle products, and the proportion of medium and large-sized projects has increased rapidly. Products such as screens have been applied in batches to various models including Lincoln, Maserati and other international high-end brands and domestic new energy brands. The Gen 8.6 line is now fully prepared for the official start of piling. The production line is expected to be capped at H2 in 2023, and start mass production at H2 in 2024. At present, the company's in-vehicle display business is mainly supplying tier1 customers, and it has direct cooperation with OEMs on some projects.

 

Shentianma A introduced the product situation of the 8.6th generation production line. The company said that the 8.6th generation new display panel production line announced by the company this year will still focus on the small and medium-sized display field that the company has been working on for many years. In addition to the LTPS production capacity, the company will supplement the company's a-Si and IGZO production capacity in the IT display field, as a key increment for the company's development, to achieve Full coverage of the small and medium size market.

 

In terms of in-vehicle products, the company currently has the ability to cover the full size of in-vehicle products, and the proportion of medium and large-sized projects has increased rapidly. 10+ to 40+ inch large-screen, multi-screen and other products have been applied in batches, including Lincoln, Maserati and other international high-end brands and On many models of domestic new energy brands. The newly built 8.6th generation line (TM19) will be formed with the new display module production line (TM20, with an investment of 8 billion yuan, equipped with medium and large-sized vehicle, industrial products, and IT display module dedicated lines) and the company's existing production lines. Flexible collocation strongly supports the upgrade of vehicle products in dimensions, specifications and other aspects, systematically improves the production capacity and module capability of vehicle business, and further strengthens the company's competitive advantage in the vehicle field.

 

Regarding the project progress of the company's 8.6th generation line, the company said that it is currently progressing smoothly as scheduled. Among them, the 8.6th generation line is currently fully prepared for the official piling start. The production line is expected to be capped at H2 in 2023, and start mass production at H2 in 2024.

 

Regarding the competitive advantages of in-vehicle business, the company said that the company's products have covered the mass production experience of thousands of models of global mainstream brands, and the in-vehicle customer resources have covered major car manufacturers such as Chinese, European, American, Japanese, and Korean series. , to achieve full coverage of international mainstream customers and Chinese independent brands (top 10), including cooperation with new energy vehicle companies is also rapidly advancing.

 

According to the company's introduction, the long-term accumulation and firm investment in the vehicle display market has effectively supported the growth capability of the company's vehicle business. In the first half of 2022, the company's vehicle display business revenue increased by more than 20% year-on-year, and the product structure was continuously optimized. At present, the company's in-vehicle business is full of orders, and the number and amount of future orders in hand will continue to break high. Advanced production capacity such as the module production line (TM20, with an investment of 8 billion yuan) will boost the scale growth and specification upgrade of the company's vehicle business.

 

Regarding changes in vehicle product prices, the company stated that the company's vehicle display products are mainly module shipments and are mainly supplied to the pre-installation market. The order cycle is long, and is relatively less affected by current market factors than consumer electronics, and demand remains strong. . The development of the in-vehicle display market is reflected not only in the extensional growth of shipments and shipment size, but also in the connotative improvement of technology and specifications. The company pays attention to the parallel development of the extension and connotation of the in-vehicle business, and continues to add on the screen. The product solutions are constantly enriched, and the product specifications and added value are continuously improved, including LTPS in-cell medium and large size, narrow frame, large screen / multi-screen and other technologies All solutions have achieved mass production of commercial projects, and continue to increase the penetration of LTPS technology in vehicle products. The company will continue to improve the complexity of vehicle product modules to help improve the overall value of vehicle products.

 

Some investors asked whether the company has carried out tier1 business. The company responded that at present, the company's in-vehicle display business is mainly supplying tier1 customers, and it has direct cooperation with OEMs on some projects.

 

Regarding the competition in the vehicle display market in the future, the company said that with more than 20 years of intensive work in the vehicle display field, the company has a professional team in vehicle R&D, manufacturing, quality, marketing, supply chain management, etc. Competitive in-vehicle professional system capabilities have gradually established a moat to cope with future competition. The company is optimistic about the development of the vehicle display market, and has a targeted forward-looking layout. The evolution of the four modernization trends of automobiles, such as "electrification, intelligence, networking, and sharing", has improved the capabilities of high-definition, large-screen, multi-screen, personalization, interactive upgrade and integrated integration of vehicle display. High requirements, the demand for the diversity of technology and products of vehicle display manufacturers is more significant, and it also tests the customer coverage and customer structure, flexible delivery ability, whole-process quality management level, and long-term guarantee and continuous investment ability of market participants. At the same time, it is necessary for enterprises to always be able to use forward-looking thinking and flexible management capabilities to adapt to the trend of market changes and grow solidly and steadily. The company will rely on the ever-increasing advantages of in-vehicle system, embrace future market opportunities, and have the confidence and ability to maintain a leading position in the field of in-vehicle display.