Focus on thin glass

Ultrathin glass refers to glass with a thickness of 0.1-1.1mm, which is not only thin, but also has many special properties; it is mainly used for liquid crystal display panel substrates. After the rise of touchscreen (TP), ultrathin glass is also used for touchscreen covers. And touch screen sensor substrate.

Ultra-thin glass production barriers are very high, the main process is float, overflow melting method and down hole under the lead method; according to the process and the material composition is divided into non-alkali glass and alkali glass. Alkali-free glass is mainly used for TFT-LCD and touch screens, and alkali glass is mainly used for TN/STN-LCD and middle and low-grade touch screens. Ultra-thin glass is at the top of the smile curve of the LCD industry chain and touch screen industry chain, and its gross profit margin is much higher than other links. Moreover, ultra-thin glass prices and profit margins are much higher than traditional glass.

Liquid crystal display is the main demand, touch screen is the emerging market, liquid crystal display is still the main demand for ultra-thin, touch screen demand has grown rapidly, but the touch screen cover glass on the mechanical strength and wear resistance requirements are high; large size, light and thin is The direction of future development; due to cost considerations, it is expected that the application ratio of alkali glass in mid-to-low touch screens is expected to increase.

Global supply has been monopolized by a few companies For a long time, the global ultra-thin glass substrate industry has been dominated by the four major manufacturers, Corning, Asahi, NEG, and Avanstrate.

The basic process flow and system equipment of ultrathin glass can be duplicated, but the fine design, control level and side effect suppression effect must rely on long-term accumulation of experience, and these are the key factors that determine the yield of ultra-thin glass; This is also the reason why ultra-thin glass substrates have long been monopolized by “bone-sized” companies with 100-year history of glass production experience, such as Corning and Asahi Glass.

Current situation in China: Domestic companies seek breakthroughs Due to the good demand for ultra-thin glass and high profit margins, despite the high barriers to entry, there are still many domestic companies that continue to increase R&D efforts and expand investment scales in an attempt to enter, but these companies’ future development prospects and gains Profitability is not mainly determined by the size of its investment and the number of melting pots. More importantly, it is necessary to be able to maintain a certain yield and stabilize production. The key to the profitability of glass substrates production lies not in the cost of raw materials, but in the cost of production and formulation, and in the Higher yields are steadily produced.

At present, there are CSG A, Luoyang Glass, Gemstone A, and Rainbow shares that are seeking breakthroughs in domestic listed companies. We propose to focus on CSG A. The company has accumulated in the glass industry and electronics industry for many years. Its technology and management capabilities are among the best in the industry. The probability of success of the ultra-thin glass project is even greater.

The risk suggests that the demand for ultra-thin glass will decline; domestic listed companies will have low expected yields and project progress is expected to be low.