Is China Star to become a listed company?
TCL (000100.CH), the parent of China Star (pvt), the 2nd largest display producer in China, is undergoing a reorganization, and while the reorganization is intended to integrate the display producing organizations owned by TCL into a more integrated unit, there is considerable speculation that the reorganization would also include the listing of Huaxing Photoelectric, also known as China Star. Currently shares of TCL are suspended from trading on the Shenzhen exchange until May 21, as is customary during reorganizations for Chinese companies.
A listing for China Star would help to isolate the display production portion of TCL from its other businesses, which include TCL Multimedia Technology (01070.HK) which is among the largest TV manufacturers and distributors in China and worldwide, TCL Communications Technology (02618.HK) which produces mobile devices under the TCL and Alcatel brands, Tonly Electronics (01249.HK) an ODM for audio and video products and TCL Display Technology (00334.HK), which includes China Star Optoelectronics. TCL is also a major appliance brand in both China and in Asia, although Chinese competitor Haier Group () is the largest in both China and the world, followed by US based Whirlpool ().
As a display producer, China Star has 4 production facilities in Shenzhen and Wuhan, ranging from Gen 4.5 to Gen 8.5 and is building a Gen 11 ultra-large panel fab which is expected to begin phase 1 production in 2Q 2019, with some capacity for large panel OLED TVs (unconfirmed). When completed, this fab will have the largest substrate format of any display production fab at 11.52 m2/sheet (124 ft2), with Asahi Glass (5201.JP) being the co-located substrate supplier. China Star also runs a Gen 4.5 OLED pilot line and is building a Gen 6 OLED production fab based on LTPS backplane technology, which will likely be for small panel OLED production. That fab is expected to open in 3Q 2018. On an overall basis, we believe China Star has a 6.4% share of worldwide display capacity this year (up from 5.2% last year) and will reach 7.2% by 2020.
A listing for China Star would help to isolate the display production portion of TCL from its other businesses, which include TCL Multimedia Technology (01070.HK) which is among the largest TV manufacturers and distributors in China and worldwide, TCL Communications Technology (02618.HK) which produces mobile devices under the TCL and Alcatel brands, Tonly Electronics (01249.HK) an ODM for audio and video products and TCL Display Technology (00334.HK), which includes China Star Optoelectronics. TCL is also a major appliance brand in both China and in Asia, although Chinese competitor Haier Group () is the largest in both China and the world, followed by US based Whirlpool ().
As a display producer, China Star has 4 production facilities in Shenzhen and Wuhan, ranging from Gen 4.5 to Gen 8.5 and is building a Gen 11 ultra-large panel fab which is expected to begin phase 1 production in 2Q 2019, with some capacity for large panel OLED TVs (unconfirmed). When completed, this fab will have the largest substrate format of any display production fab at 11.52 m2/sheet (124 ft2), with Asahi Glass (5201.JP) being the co-located substrate supplier. China Star also runs a Gen 4.5 OLED pilot line and is building a Gen 6 OLED production fab based on LTPS backplane technology, which will likely be for small panel OLED production. That fab is expected to open in 3Q 2018. On an overall basis, we believe China Star has a 6.4% share of worldwide display capacity this year (up from 5.2% last year) and will reach 7.2% by 2020.
China Star Gross Capacity - 2011 - 2020 - Source: SCMR LLC, Company Data
Chinese Panel Producers - Market Share - 2004 - 2020 - Source: SCMR LLC, Displaysearch, Company Data
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