Zhitong Financial APP learned that CICC issued a research report that recently, six departments, including the National Development and Reform Commission, issued the implementation Plan for promoting equipment Renewal in the Field of Culture and Tourism, implemented high-tech promotion actions in the film industry, encouraged the use of new technologies and equipment such as artificial intelligence, virtual shooting and virtual rehearsals in film shooting and post-production, and established and upgraded cloud production platforms and cloud data centers. And large-scale implementation of cinema LED screen projection system update plan. The domestic LED display screen has completed the full coverage of the industrial chain and has the ability of independent technological innovation. It is optimistic that after the launch of the "plan", the demand for cinema renewal is expected to contribute to the increment of the LED industry and promote the sustained growth of the market scale.
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The main points of CICC are as follows:
The movie LED screen has obvious advantages over projection, and continuous cost reduction may promote penetration.
According to the statistics of the State Film Administration, the number of screens nationwide reached 86300 in 2023. At present, there are a small number of screens in LED cinemas in China, and the vast majority of cinemas still use traditionalRainbowrichesmegawaysslotProjection technology. From the comparison of technology and supply chain, projection is based on DLP reflection time projection, the main product suppliers are overseas brands such as Christie, Barco and NEC, DMD chip is basically monopolized by Texas Instruments, while LED screen uses active luminous technology, which is superior to projection in many display parameters, and LED screen has completed the coverage of the whole industry chain in China, and the chip, package and display module are in the leading position in the world.
CICC believes that in the past, the main reason for restricting the penetration of LED movie screens is that the investment cost of LED screens is several times higher than that of traditional projection schemes (non-IMAX), but as the LED industry chain continues to reduce costs, the cost gap may continue to narrow, and the new cinema is expected to choose more LED screens to provide audiences with high-quality viewing experience.
LED cinema market has strict requirements for product certification, and the advantage of head brand layout in advance is obvious.
In November 2023, the State Film Administration issued the Technical requirements and Measurement methods of Digital Film LED Cinema, defining the screen parameters requirements of LED cinemas. In addition, in the film broadcast process, for the sake of content copyright security, international blockbusters are required to pass DCI (DigitalCinemaInitiatives) certification before showing. According to Liad, Zhouming, China Film Guangfeng and other official websites and announcements, the above companies layout LED movie screens in advance, and a number of products have passed DCI verification. CICC believes that the strict requirements for LED cinema screens at home and abroad and the advance layout of the head company are expected to be the first to benefit from the demand for cinema screen updates in the future.
The penetration of LED screen drives the increase of multi-link value in the industry, and the core income of LED display and control
CICC believes that considering the higher requirements for the display effect of the LED screen, and more stringent requirements for chip consistency, package yield and module durability and stability, the related products ASP may be higher than the traditional products of the same size, which is expected to increase the average ASP of each link and improve profitability. In addition, cinemas have obvious demand for 4K/8K and 3D film source playback, and the functions of LED video processing equipment are more complex, which is expected to increase the value of related products, and taking into account the verification requirements of the operating system, LED cinema updates are expected to further promote the trend of head concentration of video processing equipment and improve related products ASP.
Risk factors: progress in the implementation of the Programme is not as expectedRainbowrichesmegawaysslotLED screen penetration speed is not as fast as expected.