Key Takeaways:
BOE Technology Group Co. expects first-half net profit of 5 billion yuan ($688 million) to 5.5 billion yuan, a 54% to 69% increase from a year earlier, as its core LCD display business benefits from improving supply-demand dynamics.
"The LCD industry has achieved a more balanced供需 relationship, driven by accelerating screen size upgrades, the exit of older overseas production lines, and the industry's commitment to production discipline," the company said in its July 8 filing.
The Shenzhen-listed display maker's guidance implies second-quarter net profit of roughly 2.6 billion yuan to 3.1 billion yuan, compared with 2.4 billion yuan in the first quarter. Excluding gains from trading securities, core profit rose 35% to 45% year over year, reaching 3.08 billion yuan to 3.31 billion yuan.
The results underscore BOE's recovery from a prolonged LCD downturn that pressured margins across the display industry. The company's flexible AMOLED business also contributed, with shipments exceeding 80 million units in the first half, maintaining year-over-year growth. BOE is building an 8.6-generation AMOLED production line to target higher-margin medium-sized OLED applications.
New Growth Vectors
At its July 2 Investor Day in Shanghai, BOE unveiled three new business lines aimed at reducing its dependence on cyclical display markets. The company has achieved breakthroughs in glass-based packaging substrates, completing a pilot line with 1,000 wafers per month of capacity that began producing large-size, multi-layer samples in the first half.
In perovskite solar technology, BOE is pursuing rigid, flexible, and tandem architectures in parallel, having completed full-process integration from small-scale glovebox platforms to pilot lines. The company's HC SemiTek subsidiary has built a 6-inch Micro LED chip production line and delivered samples of Micro LED communication chips to customers for verification in the second half of 2025.
The guidance raise signals management expects LCD pricing to remain supported by disciplined capacity utilization. Investors will watch BOE's first-half earnings release for segment-level margins and an update on its 8.6-generation OLED timeline.
This article is for informational purposes only and does not constitute investment advice.
