According to Wanlian Securities, data from Runto Technology shows that LCD TV panel prices from major manufacturers rose in November, though the final settlement price is still expected to decline. However, the rate of decline is likely to narrow month-on-month.
On the demand side, upcoming sports events next year may prompt downstream manufacturers to stock up in advance, potentially stabilizing TV panel prices in December. Driven by increasing demand for large-sized display panels, overall area demand is expected to remain strong.
Looking ahead, as depreciation of high-generation production lines gradually concludes, leading companies' profitability and cash flow are projected to improve. Wanlian Securities recommends focusing on leading panel manufacturers in mainland China.
Key insights from Wanlian Securities include: - **November LCD TV Panel Prices**: The month-on-month decline is expected to narrow, with small-sized panels rising by $0.5–$1 and medium-to-large-sized panels by $2–$3. The settlement price for 65-inch panels is forecast to drop by $2 (a $1 improvement from October), while 75-inch panels may fall by $3 (also $1 less than October). - **December Outlook**: With production control and price stabilization strategies, along with anticipated demand recovery, TV panel prices may stabilize, with medium-to-large-sized panels potentially rising by $1–$2 for non-strategic clients.
**Sports Events to Boost Demand, Larger TV Trends Continue** The 2026 Winter Olympics and World Cup are expected to drive demand recovery, encouraging downstream manufacturers to stock up early, which could support LCD TV panel prices.
In terms of shipment area, Omdia predicts that due to trade tensions, global display panel area demand may grow only 2% in 2025, slower than 2024. However, the trend toward larger TVs (70 inches and above) is expected to sustain growth, with total demand projected to rise 6% year-on-year in 2026.
**High Utilization Rates and Reduced Depreciation Pressure** Runto Technology data indicates that global large-sized LCD TV panel shipments reached 20.6 million units in October 2025, up 8.0% year-on-year but down 4.8% month-on-month.
Since the second half of 2025, LCD panel manufacturers have maintained high capacity utilization, with July–October shipments growing 5%–10% year-on-year. Additionally, depreciation for 10.5-generation LCD production lines is nearing completion, which may ease operational pressures and support production control and price stabilization strategies.
**Investment Recommendation** LCD shipments are expected to stabilize, with mainland Chinese panel manufacturers holding nearly 70% of the global market share, reinforcing their pricing power.
Upcoming sports events and the long-term shift toward larger TV panels are likely to enhance profitability across the supply chain. Leading companies will benefit from pricing power, product competitiveness, and economies of scale. As high-generation production line depreciation concludes, their profitability and cash flow should further improve. Investors are advised to focus on leading panel manufacturers in China.
**Risk Factors** - Escalating U.S.-China tech tensions - Technological substitution risks - Intensified market competition - Heightened overseas trade disputes
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