NEW POWER(300152)2025-02-21 02:39Summary of Foldable Screen Industry Conference Call Industry Overview - The foldable screen industry is experiencing significant growth, with Huawei leading the market. In 2024, Huawei's sales are projected to reach 4.45 million units, capturing 48% of the domestic market share. Meanwhile, OPPO and Samsung are witnessing a decline in sales, indicating a trend where "the strong get stronger" due to differences in brand investment and technology [1][3][4]. Key Insights - Huawei has established a comprehensive product lineup across various price segments, from the budget-friendly nova series to high-end tri-fold models, catering to diverse consumer needs and solidifying its market position. It is expected that in 2025, the Android camp will focus on left-right foldable designs, with Huawei potentially launching a compact foldable device and innovative tablet products [1][5][7]. - The value growth in the foldable screen supply chain is notably driven by hinges and flat components, with the cost share of OLED screens increasing. Major suppliers include BOE and Visionox for screens, while domestic companies like Kaisi Technology provide UTG glass and OCA optical glue [1][8]. - The market's potential is influenced by the pricing of components and hardware from both the Android ecosystem and Apple's entry, which is anticipated to introduce variables into the market. The high technical requirements for hinges and flat components are expected to lead to significant value growth [1][9]. Market Dynamics - The foldable screen market is expected to be catalyzed by frequent innovations in the consumer electronics sector, particularly in the foldable screen niche. Key events in 2023 and 2024, such as Huawei's return to the foldable market and the anticipated release of innovative tri-fold phones, have already sparked market momentum [2]. - The anticipated launch of Apple's first foldable phone in 2026 is generating high expectations, with potential shipments reaching over a thousand units. Companies in Apple's supply chain, such as Lens Technology (UTG glass) and Amphenol (hinge design), are expected to benefit from this development [3][6][15]. Competitive Landscape - The disparity in resource investment and new product launches among major brands in the foldable screen market is evident. Companies that invest heavily and possess a rich product line and advanced technology are experiencing faster sales growth and larger market scales [4]. - The Android camp's focus for 2025 will be on left-right foldable designs, while some brands may reduce investment in up-down foldable models. Huawei is expected to launch a compact foldable device in March and potentially introduce a more affordable left-right foldable model by the end of the year [7][10]. Supply Chain Insights - The cost of components in foldable phones varies by folding design, with up-down foldable components costing around 100 yuan, while left-right designs may reach 150 to 200 yuan. Tri-fold designs will have even higher component value [10]. - MIM (Metal Injection Molding) technology is widely used in the hinges of foldable devices, with major suppliers including Dongmu Co., Jingyan Technology, and Tonglian Precision. The MIM industry is currently dominated by a few players capable of large-scale production, which may benefit from Apple's entry into the foldable market [11][12][13]. Future Outlook - The market anticipates significant growth in foldable phones, particularly with left-right designs, which show clear value enhancements in structural components like PCBs, frames, and batteries. The core focus remains on screen and hinge technologies, especially in addressing crease issues [17]. - Companies in Apple's supply chain, such as Lens Technology and those involved in hinge production, are expected to gain from the anticipated product launches. The overall market dynamics will be influenced by the successful resolution of technical challenges and the subsequent upgrades in hardware [16][18][19]. Investment Recommendations - Recommended investment targets include companies that are clearly positioned to benefit from core hardware developments, such as Dongmu Co., and those with high potential from a value perspective, like Lingyi Technology and Lens Technology. These companies have established roles in the supply chain and are under continuous monitoring [20].