Contents
I. Display investment outlook for 2010F............................................................................3
1. LG Display’s P8-Extension to stoke race for line expansion...........................................3
2. Build Chinese plants to sell display panels in the country ..............................................4
3. Display investment to enter an up cycle this year ...........................................................6
II. Mid- to long-term industry outlook.................................................................................7
1. Display industry re-enters growth phase.........................................................................7
2. Greater competitiveness of Korean equipment makers..................................................8
3. New growth engines: Solar cell, LED, and AMOLED equipment....................................8
III. Valuation and investment strategy .............................................................................12
1. Overweight call on display equipment industry, top pick is KC Tech............................12
2. Comparison of share prices and valuations of global display equipment makers ........13
[Appendix] Overview of display equipment .....................................................................15
1. Overview of LCD manufacturing process......................................................................15
2. Display equipment types and related companies..........................................................17
KC Tech (029460 KS) .....................................................................................................18
DMS (068790 KQ)...........................................................................................................25
Top Engineering (065130 KQ).........................................................................................29
SFA Engineering (056190 KQ)........................................................................................33
AVACO (083930 KQ) ......................................................................................................37