--- title: "BOE: Capacity curbs collide with the World Cup — will the price hike last?" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/40296054.md" description: "BOE Technology (000725.SZ) posted its Q1 2026 results after the A-share close on Apr 29 (Beijing time), covering the quarter through Mar 2026. Overall results: revenue of RMB 51.0bn (+0.8% YoY).Panel prices were slightly lower YoY (~2%), implying shipments increased YoY. $BOE(000725.SZ) reported Q1 2026 net profit of RMB 1.71bn (-12% YoY)..." datetime: "2026-04-29T16:00:14.000Z" locales: - [en](https://longbridge.com/en/topics/40296054.md) - [zh-CN](https://longbridge.com/zh-CN/topics/40296054.md) - [zh-HK](https://longbridge.com/zh-HK/topics/40296054.md) author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)" --- # BOE: Capacity curbs collide with the World Cup — will the price hike last? BOE Technology (000725.SZ) released its Q1 2026 results (ended Mar 2026) after the A-share close on Apr 29 (Beijing time). Key takeaways are below: **1\. Overall results: BOE posted revenue of RMB 51.0 bn in Q1 2026, +0.8% YoY**. Panel ASPs were slightly lower YoY (~2%), implying shipment volume likely rose YoY. $BOE(000725.SZ) Q1 2026 **net profit was RMB 1.71 bn, down 12% YoY, mainly due to higher R&D and other operating expenses**. The expense mix weighed on profitability. **2\. GPM and expense ratio:** Q1 GPM was 15.6%, down sharply QoQ. Mainly due to company-specific effects. **The company booked substantial reversals of asset impairments last quarter (approx. RMB 2.1 bn).** This inflated the prior quarter's GPM and skewed the QoQ comparison. **Excluding Q1 asset impairment (approx. RMB 135 mn) and related effects, Adj. GPM was 15.3% (+20bps QoQ),** with panel prices ticking up QoQ. **3\. Panel pricing:** BOE's revenue is primarily driven by large TV panels, so pricing directly impacts earnings. Based on 65/55/43/32-inch panel quotes, large panel prices rose ~5% from end-2025 to end-Q1. **4\. Inventory**: **Inventory was RMB 25.5 bn in Q1 2026, -8% QoQ.** The inventory-to-revenue ratio fell to 0.5, a relatively healthy level. **Dolphin Research view: Earnings are highly tied to pricing; watch the durability of this upcycle.** Revenue was broadly flat this quarter. The profit decline was driven by higher R&D and G&A. **Operationally, BOE's true GPM (under original accounting, including impairment effects) was 15.3%, +20bps QoQ.** Combining 15.3% GPM with an opex ratio of 11.9% implies core OPM of ~3.4%. Dolphin Research adjusts profit as GP minus taxes and opex plus impairment losses. **Adjusted profit was ~RMB 1.379 bn in Q1, implying a net margin of ~2.7% on RMB 51.0 bn revenue (after taxes and impairments).** Since 2024, panel prices have been relatively stable with limited volatility. **BOE's adjusted net margin has hovered around 0–3%, near breakeven, underscoring the tight linkage between operations and panel pricing.** Earnings remain highly sensitive to ASPs. **Earlier price rises were driven by supplier-led capacity cuts rather than demand improvement.** As panel makers return to profitability, utilization ramps, restoring supply-demand balance and stalling price gains. **From 2024 to date, panel prices have been range-bound and BOE's core biz sits just above breakeven, suggesting a balanced market.** Notably, **Chinese New Year-led production curbs and the World Cup disrupted that balance.** **Panel prices began to rise modestly from Feb 2026; we will watch the trajectory.** **Capacity modulation by panel makers can influence pricing and directly impact GPM and earnings.** But sustained demand recovery is the key signal for a cyclical upturn. **As the industry leader, BOE benefits from scale and better loss absorption.** Despite cycles, BOE's overall scale continues to expand. BOE and TCL CSOT together hold over 50% share of global LCD panels. **The duopoly enables 'produce-to-demand' to stabilize pricing during weak demand.** Post industry reshaping, top players have more proactive pricing control versus reactive, loss-driven production cuts. **With the World Cup approaching, demand should improve.** That said, if memory prices keep rising, end-demand could be squeezed, potentially capping TV recovery. **Panel prices will sway near-term results, but rising market concentration should dilute cyclicality, making BOE's earnings more stable.** Below are Dolphin Research's charts on BOE. Dolphin Research BOE archive: Mar 31, 2026 earnings review '[BOE: A grinding cycle—can the leader only eke out thin profits?](https://longportapp.cn/zh-CN/topics/39646950)' Oct 30, 2025 earnings review '[BOE: Panel prices fall again—can a 1% margin hold?](https://longportapp.cn/zh-CN/topics/35813461)' Aug 27, 2025 earnings review '[BOE: Core biz just above breakeven—when will price hikes return to save the day?](https://longportapp.cn/zh-CN/topics/33399577)' Apr 22, 2025 earnings review '[BOE: A tailwind for panels, with tariff clouds adding uncertainty?](https://longportapp.cn/zh-CN/topics/29092530)' Risk disclosure and statement: [Dolphin Research disclaimer and general disclosure](https://support.longbridge.global/topics/misc/dolphin-disclaimer) ### Related Stocks - [000725.CN](https://longbridge.com/en/quote/000725.CN.md) - [00710.HK](https://longbridge.com/en/quote/00710.HK.md) - [200725.CN](https://longbridge.com/en/quote/200725.CN.md) ## Comments (1) - **koi · 2026-04-29T16:06:28.000Z**: The stock price of a company with no real substance is consistently low.