(Yicai Global) Sept. 13 -- Shares in Appotronics Corp. soared today after the Chinese laser display maker said it has become a supplier of in-vehicle display panels to China’s best-selling auto manufacturer BYD.

Appotronics’ share price [SHA:688007] closed up 10.7 percent at CNY28.42 (USD4.10) today.

Revenue will depend on BYD’s actual purchase volume and there is still some uncertainty regarding the order quantity, Shenzhen-based Appotronics said yesterday. The new contract is not expected to affect the firm's business performance this year, but will be a big boost in the future should all run smoothly.

Appotronics has already obtained the permit needed to supply China’s automotive sector and the new market segment of in-car equipment has great potential, Great Wall Securities said in a research note.

The new source of income will make a difference to Appotronics. The firm has been hit hard by the recent outbreaks of Covid-19 which sank demand for digital laser displays in cinemas, one of its biggest earners. The company's net profit plunged 69.6 percent in the first half from the same period last year to CNY45.9 million (USD6.6 million), while revenue gained 14.9 percent to CNY1.2 billion (USD184 million).

A number of panel manufacturers have turned their focus to in-car display screens since the start of the year. BOE Varitronix, a unit of display panel maker BOE Technology Group, is partnering with electric vehicle startup Xpeng Motors on smart cockpit display screens. While Leiniao Technology, under consumer electronics giant TCL Electronics Holdings, is hooking up with EV maker Li Auto regarding its Leiniao Air extended reality glasses.

The world’s in-car display market was worth about USD7.2 billion in 2020 and is expected to reach USD12.8 billion by 2025, according to UK market research firm Omdia. The value of screens will rise as both their number and size increase in autos and as the market transitions from liquid crystal displays towards organic light-emitting diode ones, it added.

However, there is fierce competition between makers of laser displays, Only five firms, LCDs and OLEDs. Tianma Microelectronics, Japan Display, Taiwan-based AU Optronics, BOE Technology and South Korea’s LG Display, accounted for 65 percent of the world’s in-car display panel market in the third quarter last year, according to statistics from Sigmaintell and Huajing Industry Research Institute.

Editors: Shi Yi, Kim Taylor