TV panel prices continued to rise in January; three major A-share companies plan to raise 40 billion yuan in additional capital-EEWORLD

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In 2020, the supply pattern of TV panels changed dramatically, resulting in tight supply and demand and a sharp rise in prices. Entering the first week of 2021, against the backdrop of a shortage of upstream materials, TV panel quotations continued to rise in the first quarter.

At the same time, benefiting from the introduction of new refinancing regulations, the A-share fixed increase market continued to be hot. This week, Kingsignal, Lens Technology, and Fenghua Hi-Tech all released plans for fixed increase; in addition, this week, a large number of chip companies accelerated their entry into the capital market, including Fengqi Technology, Xiangfang Electronics, Hemei Jingyi, Hehong Industrial, Xindonglianke, Naike Technology and many other electronic component manufacturers have started listing guidance.

TV panel prices continued to rise in January

In 2020, due to the impact of the epidemic, the demand for remote work and online education at home increased around the world, which led to the growth of market demand for tablets, laptops and other products, and the demand for display driver ICs continued to increase. In addition, since the third quarter, the demand for TV panels has rebounded, resulting in a tight supply of the display driver IC market as a whole.

So far, component shortages have been affecting China's second- and third-tier panel manufacturers, and have begun to affect first-tier panel manufacturers since the end of 2020. Omdia believes that this situation will continue in the first quarter of 2021, and component shortages will be a factor limiting LCD TV panel shipments in 2021.

AUO Chairman Peng Shuanglang stressed that prices are always determined by supply and demand, and the severe situation will continue until the first half of next year. CINNO Research also told Jiwei.com that due to the second outbreak of the epidemic overseas, many countries have re-intensified their epidemic prevention efforts, and the impact of home demand continues to have an effect. There is no sign of weakening demand for TV panels in the first half of this year. At the same time, due to the supply of upstream key materials such as driver ICs and glass substrates, panel prices will continue to rise.

However, as Samsung Display and LGD plan to delay the closure of LCD factories, the rising trend of TV panel prices may reverse. Some manufacturers are worried that as Chinese panel factories increase production capacity and Korean factories delay the closure of factories, the supply of TV panels may again be in oversupply in the second half of the year, and panel prices will also show a downward trend as the market changes.

Overall, 2021 will still be a challenging year for panel manufacturers. Manufacturers need to adjust their business strategies in a timely and accurate manner according to changes in market conditions. At the same time, they should deepen cooperation with upstream supply chains to ensure the supply security of important raw materials, components and major equipment, and form strategic alliances with high-quality customers, implement key customer strategies, and continue to explore partners with channel resources.

The total fundraising amount is 40 billion yuan, and three major enterprises have released plans for additional issuance

Benefiting from the introduction of new refinancing regulations, the fixed increase market continued to be hot in 2021. This week, Kingsignal, Lens Technology, and Fenghua Hi-Tech all released plans for fixed increase.

On January 8, Kingsignal released the "2021 GEM A-share Stock Issuance Plan to Specific Objects". The company plans to raise no more than 600 million yuan through a private placement, and the net proceeds will be used entirely for the expansion and renovation of the smart factory of Xinfeng Kingsignal Antainuo High-tech Co., Ltd. with an annual output of 1.68 million square meters of multi-layer circuit boards (an additional 1.08 million square meters) and to supplement working capital.

Kingsignal stated that the purpose of issuing A-shares to specific objects this time is mainly to increase investment in PCB production capacity, expand market share, consolidate the main business; improve the company's capital structure and enhance the company's risk resistance.

On the evening of January 7, Lens Technology released a report on the issuance of shares to specific objects and listing on the Growth Enterprise Market. As of December 30, 2020, the total number of shares issued by Lens Technology to specific objects was 589.6 million shares, with an issue price of RMB 25.44 per share, and the actual total amount of funds raised was approximately RMB 15 billion.

Lens Technology stated that the investment projects of the funds raised from this issuance to specific objects are closely centered on the company's main business, and will be used to invest in the Changsha (Second) Park smart wearable and touch-screen functional panel construction project, the Changsha (Second) Park automotive glass and large-size functional panel construction project, the Changsha (Second) Park 3D touch-screen functional panel and production supporting facilities construction project, the industrial Internet industry application project, and to supplement working capital.

On January 7, Fenghua High-Tech released a plan for the private placement of A-shares in 2021, stating that it plans to issue shares privately to 35 qualified investors, including the company's controlling shareholder Guangsheng Company. The total amount of funds raised from this private placement will not exceed RMB 500,000.00 million (including RMB 500,000.00 million). After deducting issuance expenses, the net proceeds from this private placement of shares will be used for the "Xianghe Industrial Park High-end Capacitor Base Construction Project" and the "Increased Monthly Production of 28 Billion Chip Resistors Technical Transformation and Expansion Project."

Fenghua High-Tech stated that the implementation of the investment project with the raised funds is an important measure for the company to improve its industrial layout, further consolidate its core competitiveness and expand its market application areas. It will be beneficial to improve the competitiveness of the company's main products MLCC and chip resistors, and is of great significance to the company's profitability improvement.

Several electronic component companies started listing guidance

With the smooth implementation of the registration system for the Science and Technology Innovation Board and the Growth Enterprise Market, a large number of chip companies are accelerating their entry into the capital market. This week, many electronic component manufacturers including Fengqi Technology, Xiangfang Electronics, Hemei Jingyi, Hehong Industrial, Xindonglianke, and Naike Technology have started listing guidance.

Fengqi Technology

Fengqi Technology (Shenzhen) Co., Ltd. plans to issue its first public offering of shares and list on a domestic stock exchange. It has now accepted the guidance of Haitong Securities Co., Ltd. and filed for guidance with the Shenzhen Securities Regulatory Bureau on December 23, 2020.

Tianyancha shows that Fortior Technology (Shenzhen) Co., Ltd. (Fortior) was established in 2010 with a registered capital of RMB 69.27253 million. It is a high-performance, high-quality motor drive control chip R&D and design company. It has realized the world's first number of three-phase and single-phase Hall-free DC brushless drive technologies and single-phase Hall-insensitive DC brushless drive technologies.

Direction Electronics

Shenzhen Xiangfang Electronics Co., Ltd. plans to issue its first public offering of shares and list on a domestic stock exchange. It has now accepted the guidance of Shenwan Hongyuan Securities Underwriting and Sponsoring Co., Ltd. and filed for guidance with the Shenzhen Securities Regulatory Bureau on December 25, 2020.

Harmony and Beauty

Hemei Jingyi plans to issue shares for the first time and list on a domestic stock exchange. It has now accepted the guidance of Kaiyuan Securities Co., Ltd. and filed for guidance with the Shenzhen Securities Regulatory Bureau on December 29, 2020.

According to information, Hemei Jingyi was established in 2007 with a registered capital of 110 million yuan. The main products of Hemei Jingyi are IC packaging substrates, such as CSP, EMMC, CMOS, BGA, HTCC (ceramic packaging substrates), fingerprint identification cards, flash memory series products, etc. It has successfully developed high-density interconnect 6-8 layer boards (HDI) and has its own independent PCB industrial park and independent environmental protection treatment system.

Hehong Industrial

Hehong Industrial plans to issue shares for the first time and list on a domestic stock exchange. It has now accepted the guidance of China Merchants Securities Co., Ltd. and filed for guidance with the Shenzhen Securities Regulatory Bureau on September 29, 2020.

Hehong Industry has been focusing on the field of consumer electronic peripheral products for many years. It is a leading professional supplier of weak-current signal transmission products in China. It mainly provides signal transmission cables and related products for individual users to domestic and foreign hypermarkets and world-renowned consumer electronic accessories brands. Its product applications cover mid-to-high-end consumer electronics fields such as mobile terminals and audio and video. Some products fill the gap in domestic signal transmission technology.

Xindonglianke

In November 2020, Innosilicon and CITIC Securities signed the "Guidance Agreement on the Initial Public Offering and Listing of Anhui Innosilicon Microsystems Co., Ltd. and CITIC Securities Co., Ltd." and completed the guidance filing registration on December 3, 2020.