BOE VARITRONIX Shares Surge Nearly 7% on Milestone for New Production Facility

Stock News06-30

Shares of BOE VARITRONIX (SEHK: 00710) rose nearly 7% during the trading session. At the time of writing, the stock was up 5.42% to HK$4.28, with a turnover of approximately HK$12.02 million.

Key Development Driving the Move

The catalyst for the share price movement was a significant milestone at the company's manufacturing base. On June 26th, the topping-out ceremony was held for the third-phase project at BOE VARITRONIX's Heyuan manufacturing base. This project represents a total investment of 2 billion yuan and is anticipated to commence large-scale mass production in December.

Projected Capacity and Strategic Impact

Upon reaching full operational capacity, the new facility is projected to add an annual production capability of over 10 million units for automotive displays. The focus will be on supplying OLED cockpit screens and other high-end automotive display products. This expansion will significantly boost the company's production capacity for medium and large-sized automotive panels. It will also optimize the collaborative supply structure among the company's three major manufacturing hubs located in Heyuan, Chengdu, and Vietnam.

Company's Market Position and Future Outlook

As the dedicated automotive display listed platform under BOE, BOE VARITRONIX has maintained its global leadership for multiple consecutive years in terms of both shipment volume and shipment area for automotive panels. The company collaborates with over a hundred automotive brands worldwide. The Heyuan base serves as a core production hub for the company in Southern China. The completion of the third phase is expected to substantially enhance order fulfillment efficiency for domestic new energy vehicle manufacturers and international clients. This move is set to strengthen the company's dual advantages in scale and technology within the competitive smart cockpit sector.

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