Morgan Stanley: Greater China Tech Hardware — July 2026 TV Panel Prices Down 2%; Monitor and Notebook Panels Flat MoM
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Key Views
Panel stock risk-reward appears roughly balanced after recent corrections. The report cautions against valuing names solely on potential glass advanced packaging opportunities, as incremental contributions may materialize more slowly and competition could intensify at the mass-production stage. AUO trades at 1.3x P/B and Chimei Innolux at 1.7x P/B.
Outlook
Chimei Innolux's glass core substrate project is not expected to generate meaningful contributions before 2028. Key upside risks include stronger-than-expected end demand, stricter capacity control, and faster progress in non-commoditized display businesses.
Recommended Securities
- BOE (000725.SZ): Overweight, target price Rmb9.30 (2.5x 2026E P/B), preferred over TCL for greater scale and faster glass core substrate progress.
- AUO (2409.TW): Equal-weight, target price NT$27.00.
- Chimei Innolux (3481.TW): Equal-weight, target price NT$60.00.
- TCL (000100.SZ): Equal-weight, target price Rmb4.70.
Key exhibits
Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4
Exhibit 5
