Foldable Indicator
Shindo ENG (290520.KS) is a South Korean company that produces specialized equipment for the display industry. In particular equipment that laminates various materials to other materials in both LCD and OLED displays. Their 3D laminator is used to attach an OLED panel to the touch panel and cover glass (as seen below) that have curved sides, however they also produce a 2D OLED laminator for devices that have flat displays. While this sounds rather mundane, the 2D OLED laminator product has seen a bit of a resurgence this year as it is used to attach the foldable display to the hinged frame for Samsung (005930.KS) foldables on an exclusive basis. This gives a bit of insight into the plans for foldables both in 2020 and 2021 as follows.
Shindo supplied 15 laminators to Samsung in the first half of 2020 and 13 in 2H, but was expecting to ship more in 2H than in 1H. While Samsung could certainly have over-ordered a bit in 1H, more likely the effects of COVID-19 on smartphone sales was a factor that might have made Samsung a bit more cautious about how smartphones and particularly foldables would sell in 2H. Also revealing is that the company also sold 4 units to China’s BOE (200725.CH), which the company used to produce Huawei’s (pvt) Mate X foldable and 1 unit to Visionox (002387.CH), who we expect is using it to develop a foldable display for Xiaomi (1810.HK) to be released in 2021.
Shindo did say that some orders for its equipment (not specified) that were expected in 3Q and 4Q had been pushed to 2021, with their major clients being BOE, Chinastar (pvt), Tianma (000050.CH) and Visionox, we expect that was another cautionary note about the more realistic expectations of Chinese panel producers, despite the continuing aggressive rhetoric. The company did note that it expects Royole (pvt) and EverDisplay (pvt) to begin new investments in foldable in 2021 (Royole has stated that they are building a new flexible OLED fab) and they expect strong shipments to Chinese customers through 2023. While these are just data points it does give some clarification to the level of commitment panel producers have toward foldables and the general prospects for the OLED display business both in 2020 and in 2021. “If we have data, let’s look at data. If all we have are opinions, let’s go with mine.” — Jim Barksdale…
Shindo supplied 15 laminators to Samsung in the first half of 2020 and 13 in 2H, but was expecting to ship more in 2H than in 1H. While Samsung could certainly have over-ordered a bit in 1H, more likely the effects of COVID-19 on smartphone sales was a factor that might have made Samsung a bit more cautious about how smartphones and particularly foldables would sell in 2H. Also revealing is that the company also sold 4 units to China’s BOE (200725.CH), which the company used to produce Huawei’s (pvt) Mate X foldable and 1 unit to Visionox (002387.CH), who we expect is using it to develop a foldable display for Xiaomi (1810.HK) to be released in 2021.
Shindo did say that some orders for its equipment (not specified) that were expected in 3Q and 4Q had been pushed to 2021, with their major clients being BOE, Chinastar (pvt), Tianma (000050.CH) and Visionox, we expect that was another cautionary note about the more realistic expectations of Chinese panel producers, despite the continuing aggressive rhetoric. The company did note that it expects Royole (pvt) and EverDisplay (pvt) to begin new investments in foldable in 2021 (Royole has stated that they are building a new flexible OLED fab) and they expect strong shipments to Chinese customers through 2023. While these are just data points it does give some clarification to the level of commitment panel producers have toward foldables and the general prospects for the OLED display business both in 2020 and in 2021. “If we have data, let’s look at data. If all we have are opinions, let’s go with mine.” — Jim Barksdale…
3D OLED Display Lamination Process - Source: Shindo
Shindo In-Line 2D Laminator - Source: Shindo
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