What About Truly?
Disclosure with Chinese companies can be a bit problematic and rarely do you see monthly sales or shipment reports from Mainland companies, but Truly (0732.HK) is a Chinese panel producer that lists on the Hong Kong exchange, which, as in Taiwan, requires monthly sales disclosures. This allows for a comparison with results from Taiwan panel producers as noted above. Truly is a small panel producer, with Gen 2.5 and Gen 4.5 lines producing at a stated capacity of 15,000 sheets/month. While this does not compare directly with AU Optronics or Innolux, Hannstar similarly produces primarily small panel product.
Truly saw an increase of 23.2% in m/m sales for March, very similar to Hannstar, after m/m declines in January and February, again similar to Hannstar. While the incremental gain was similar in March, Truly saw only a 3.1% increase on a y/y basis, while Hannstar saw over 100% y/y growth, a function of what we believe is Truly’s maxed out capacity. As a relatively small player in a market that is increasingly dominated by large panel producers, Truly is one of those producers that lives on the razor’s edge but cannot break out of its niche without capacity expansion. More likely the company will be absorbed by a state-owned entity when panel prices are in cyclical decline, but until then it gives anecdotal evidence as to the relative performance of panel producers in the very short-term, unusual for Chinese companies.
Truly saw an increase of 23.2% in m/m sales for March, very similar to Hannstar, after m/m declines in January and February, again similar to Hannstar. While the incremental gain was similar in March, Truly saw only a 3.1% increase on a y/y basis, while Hannstar saw over 100% y/y growth, a function of what we believe is Truly’s maxed out capacity. As a relatively small player in a market that is increasingly dominated by large panel producers, Truly is one of those producers that lives on the razor’s edge but cannot break out of its niche without capacity expansion. More likely the company will be absorbed by a state-owned entity when panel prices are in cyclical decline, but until then it gives anecdotal evidence as to the relative performance of panel producers in the very short-term, unusual for Chinese companies.
Truly Monthly Sales - 2018 - 2021 YTD - Source: SCMR LLC, Company Data
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