Event: On July 13, 2021, the company issued an announcement of performance advancement. It is expected to achieve a net profit of 12.5-12.7 billion in the first half of the year, an increase of 1001%-1018% over the same period of the previous year, and a single-quarter net profit hit a record high.
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The single-quarter net profit hit a record high, opening a stable growth period. According to the company's performance forecast, 2021H1 will achieve a net profit of 12.5-12.7 billion yuan attributable to the parent. It can be calculated that the net profit attributable to the parent in the second quarter is about 7.3-7.5 billion yuan, and the same period in the second quarter of last year was 569 million yuan. The year-on-year growth was 1182.95%-1218.10%, and the quarter-on-quarter growth was 40.87%-44.73%. The single-quarter performance hit a record high. The main reason is that the company's display product prices continue to increase due to the upward boom in the semiconductor display industry. At the same time, the company continues to optimize its product structure, and the market share of mainstream LCD applications continues to maintain its lead. With its leading advantage, the company's profitability has further improved. Looking to the future, we believe that with the continuous withdrawal of Korean manufacturers, the industry's production capacity structure will further shift to the domestic market, the industry concentration will continue to increase, and the company's profitability is expected to continue to rise.
The prosperity of the industry has risen, and the company's product prices have continued to rise. In the first half of 2021, the prosperity of the semiconductor display industry has steadily improved. On the one hand, it has benefited from the housing economy, the fermentation of home office, and the continuous increase in the demand for vehicles and commercial displays; on the other hand, the shortage of raw materials such as upstream driver ICs and polarizers has led to a tight supply and a mismatch between supply and demand. The overall supply of the company's products is in short supply, and the prices of various products such as IT and TV have risen to varying degrees. Among them, the demand for IT products with the highest proportion is far greater than the current production capacity, and the market is in good condition. According to Omdia data, the prices of 32-, 43-, 50-, 55-, and 65-inch TV panels continued to rise in June, with an average monthly increase of about 2%, while the average increase of IT screens reached about 4%. With the transfer of industry pricing power to China, the long-term price center of panel products has risen, and industry cyclical fluctuations will converge under the cessation of industry transfer and industry concentration. The depreciation of the superimposed stock production line has been completed. We expect the company to expand in the next two years. The gross profit margin of the size LCD business is expected to remain in the range of 20%-25%, achieving both volume and price growth, and gradually developing into a stable cash cow.
Optimize the product structure and further increase the company's market share. In the first half of the year, the company's mature production lines maintained full production and sales, and the market share of mainstream LCD applications continued to maintain its lead. The shipment volume and market share of display products continued to rank first in the world. The product structure has further improved, the proportion of high-end products has increased significantly, the profitability has continued to improve, the growth of operating performance has been significantly higher than the increase in prices, and the industry's leading advantage has been further reflected. According to Sigmaintell's forecast data, in the first half of 2021, BOE ranked first in the world in terms of display shipments in the five application areas of smartphones, tablets, laptops, monitors, and TVs, and the flexible screen market accounted for The rate ranks first in the domestic industry and second in the world. In addition, the market share of vehicle display panels over 8 inches will also continue to remain the world's number one. According to Omdia's data, BOE's production capacity in the TFT-LCD field will account for 25.5% in 2021. This figure is expected to reach 29% in 2024. This will be the largest share reached by a single manufacturer in the history of the flat panel display industry. .
Looking forward to the second half of the year, we believe that the replenishment of branded panel inventory and the advent of the traditional peak season of the industry will hedge to a certain extent the possible decline in terminal demand due to the gradual unblocking of the epidemic in Europe and the United States. According to the current supply pattern, LCD products in the second half of the year It is difficult for prices to reverse downward, and we expect to show a trend of slower rising slope and high volatility. With the further consolidation of the leading position, the full deployment of the Internet of Things strategy and the full promotion of innovative businesses, we are optimistic about the company's further growth as a representative of China's scientific and technological power on the world stage.