Panel producer EverDisplay (pvt) (aka EDO aka Hehui Optoelectronics) is expected to begin trading on the Shanghai Stock Exchange on February 1. The company, which is based in Shanghai, has been focused on small panel OLED production, with a Gen 4.5 rigid OLED fab that was built (phase 1) in late 2014, and a Gen 6 flexible OLED fab (phase 1) that has been in operation since 2019, with a phase 2 expansion project underway. EDO was the first Chinese OLED panel producer but remains a relatively small producer when compared to Chinese leader BOE (200725.CH) or high volume producer Samsung Display (pvt), although their displays do appear in a number of prominent Chinese smartphone brands.
That said, the company has shown negative net margins and cash flow since inception likely using the capital ($1.54b US) raised to continue the Gen 6 phase 2 expansion, which would double its Gen 6 capacity to 30,000 sheets/month when completed, allowing it to increase production of its OLED notebook panels, which it released last year. Given the lack of profitability, it will be interesting to see how local investors react to the EDO listing. More to follow.
That said, the company has shown negative net margins and cash flow since inception likely using the capital ($1.54b US) raised to continue the Gen 6 phase 2 expansion, which would double its Gen 6 capacity to 30,000 sheets/month when completed, allowing it to increase production of its OLED notebook panels, which it released last year. Given the lack of profitability, it will be interesting to see how local investors react to the EDO listing. More to follow.
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