CITIC Securities: Short-term price increase in panels is expected to release profit elasticity, sustained realization of mid- to long-term value logic.

The report from CITIC Securities pointed out that in the short term, the inventory preparation for events has driven the improvement in supply and demand of panels. TV panels have seen across-the-board price increases in the first quarter of 2026, and this trend is expected to continue in the fourth quarter of 2026, with the performance of panel factories trending positively on a quarter-on-quarter basis. In the long term, we firmly believe in the value logic of the panel industry under benign competition. We expect that future industry profits will gradually shift from relying mainly on price increases to creating more industrial value. This will mainly be reflected in: the promotion of large sizes balancing supply and demand, continuous domestication and cost reduction as well as upgrading to high-end manufacturing, reaching the peak of depreciation, and a minority of equity buybacks. We are optimistic about the accelerated release of performance of leading companies in the future.