BOE's net profit in the first half of the year is expected to increase by nearly 70% year-on-year at most, driven by both the recovery in LCD market conditions and the surge in AMOLED demand｜Financial Report News
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On July 8, BOE released its forecast for the half-year results of 2026, expecting a net profit attributable to shareholders of the listed company of 5 billion to 5.5 billion yuan in the first half of the year, a significant year-on-year increase of 54% to 69%; net profit after excluding non-recurring gains and losses is expected to be 3.08 billion to 3.31 billion yuan, a year-on-year increase of 35% to 45%.
This impressive earnings forecast not only confirms the continued recovery of fundamentals in the panel industry but also highlights the resilience of industry leaders during cyclical fluctuations. From the core driving forces, the profitability recovery of the LCD business and the rising shipment volume of flexible AMOLED together underpin BOE’s first-half performance.
It is noteworthy that beyond the strong recovery of main business, the company’s non-recurring gains and losses also provided significant incremental growth. It is estimated that about 2 billion yuan of non-recurring gains and losses are included in the net profit attributable to shareholders in the first half, mainly due to changes in the fair value of trading financial assets. Even excluding this revenue, over 3 billion yuan of net profit after deducting non-recurring items still validates the substantial increase in the company's core profitability.
LCD Supply and Demand Improve, Panel Prices Stabilize and Rebound
The LCD business has become a key support for BOE's performance recovery in the first half of the year.
After several years of industry downturn, the supply and demand structure of LCD panels is improving. On the supply side, some overseas outdated production lines have exited, the industry continues to implement demand-led production strategies, and capacity expansion is becoming more rational; on the demand side, major sporting events such as the European Cup and World Cup have unleashed stocking demand for TV panels, driving a rebound in the TV panel market.
In terms of prices, from January to April 2026, prices of mainstream sizes of TV panels rose across the board. Entering May and June, as the stocking cycle ended, market supply and demand returned to balance, and prices of mainstream sizes remained stable overall, with no significant decline observed.
Meanwhile, rising storage prices are putting some pressure on consumer electronics demand, and overall terminal shipments still face challenges. However, the trend toward larger sizes continues to yield dividends, and BOE is offsetting some pressure on quantity by increasing the proportion of high-size, high-spec products and expanding shipment area.
The company stated, BOE continues to rank first globally in LCD panel shipments across five major application fields, and shipments of high-end products such as high refresh rate, high contrast, and high resolution panels continue to rise, improving the profitability of the LCD business year-over-year.
AMOLED Business Defies the Trend and Grows, 8.6th Generation Line Kicks Off New Cycle
The flexible AMOLED business has also become a highlight of the company's growth.
Despite pressure on demand in the smartphone market, BOE’s AMOLED product shipments in the first half still exceeded 80 million units. Among these, high-end OLED products such as LTPO continued to increase in volume. As these products are mainly used in flagship devices, they have higher value per unit, helping to enhance the profitability and product structure of the OLED business.
More importantly, the company’s 8.6th generation AMOLED production line has officially entered mass production during the reporting period. This production line targets the mid-size OLED market for tablets and laptops. With increasing demand for mid-size OLEDs, BOE is expected to leverage its mass production capabilities to compete with Korean manufacturers, further expanding the growth space for its AMOLED business.
Panel Cycle Recovery Is the Main Driver, Non-Recurring Gains and Buyback Strategy Provide Positive Contributions
From the profit structure, BOE’s earnings growth this time was mainly driven by two factors.
First are non-recurring gains and losses, estimated at about 2 billion yuan in the first half, mainly from fair value gain on trading financial assets; second is the profitability recovery of its main business. After excluding the impact of non-recurring items, net profit from the main business contributed about 3 to 3.5 billion yuan, mostly matching the net profit forecast after deducting non-recurring items. Although financial asset gains significantly boosted overall profit growth, improvement in panel business profitability remains the core support for improved results.
At the same time, changes in share capital have provided positive contributions to earnings per share. The base for calculation of basic earnings per share this period is about 35.957 billion shares, a decrease of nearly 1.4 billion shares from 37.393 billion shares in the same period last year, mainly due to share buyback and unvested restricted shares. The reduction in share capital has strengthened per-share earnings to some extent and reflects the effectiveness of the company’s strategies in improving capital structure and increasing shareholder returns through buybacks in recent years.
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