Recently, Sehwa Technology announced that the construction of its fundraising initiative, the "Optical Display Film Materials Expansion Project," is advancing steadily and is poised to commence trial operations in early 2027. The company is now intensifying its efforts in project construction to facilitate early production.

According to publicly available information, this project is a component of the broader "High-Performance Optical Adhesive Film Materials Project," with a total planned investment of around 740 million yuan. Once fully operational, it is projected to yield an annual operating revenue of 1.392 billion yuan. The project focuses on three core products—polarizer protective films, OLED process protective films, and OCA optical adhesive films—all of which are optical film materials with low domestic substitution rates and significant technical barriers.

From a global perspective, according to QYResearch's survey data, the market for polarizer protective films is expected to reach approximately 11.9 billion yuan by 2025 and expand to 16.41 billion yuan by 2032. Meanwhile, the global OCA optical adhesive film market is anticipated to reach 4.05 billion USD by 2032.

Focusing on the domestic market, with the ongoing shift of downstream panel production capacity to China, the Chinese optical film market is experiencing rapid growth. Industry forecasts suggest a gradual emergence of a 10-billion-yuan incremental market space. Faced with such immense market potential, Sehwa Technology has opted to accelerate its expansion at this juncture, aiming to capitalize on the window of opportunity for domestic substitution.

Indeed, this expansion project is merely one facet of Sehwa Technology's broader optical materials strategy. According to public data, the company's "High-Performance Optical Adhesive Film Materials Project" entails a total planned investment of 2.05 billion yuan. In addition to the aforementioned optical display film production lines, it encompasses product lines for photosensitive materials and optical display coating materials. Upon completion, the project is expected to position the company as one of the few upstream material suppliers in China capable of meeting the 8.6-generation line matching requirements of panel manufacturers.

Furthermore, the company's "High-Performance Optical and Integrated Circuit Polymer Materials Project" in Zhangjiagang officially commenced construction at the end of June 2026, with a planned investment of 500 million yuan. This project primarily focuses on polymer materials for integrated circuit packaging, new display technologies, and AI smart hardware. The combined investment scale of these two projects amounts to 2.55 billion yuan, underscoring management's long-term confidence in the optical and semiconductor materials sectors.

However, amidst this active expansion, the company's short-term financial performance is experiencing certain periodic fluctuations. The first-quarter report for 2026 reveals that Sehwa Technology achieved an operating revenue of 239 million yuan, representing a year-on-year decrease of 6.45%. The net profit attributable to shareholders was 85.3633 million yuan, slightly down by 2.07% year-on-year. This change may be attributed to increased investments during the company's current capacity expansion phase. Nevertheless, it is worth noting that the net cash flow from operating activities during the same period reached 112 million yuan, marking a year-on-year increase of 53.28%.

Comparatively, the short-term profit pressure primarily reflects the impact of accounting treatments on financial statements, while the significant cash flow growth indicates improvements in the company's main business collection capabilities and operational capital management efficiency. The company's operational quality remains robust, providing strong support for its capital needs during the expansion phase. Sehwa Technology has scheduled the release of its interim report for August 25, and the market is keenly anticipating whether its performance will reach a turning point.

In the realm of photosensitive dry films, the company has also achieved substantial breakthroughs. Currently, this product is in the small-batch shipment stage and is continuously expanding its validation with a diverse customer base. As a key graphic transfer material in the PCB manufacturing process, photosensitive dry films are poised to become another growth driver with explosive potential, following in the footsteps of optical films.

Overall, with its extensive mass production experience and customer base in the polarizer protective film sector, coupled with this expansion project expected to generate an annual operating revenue of 1.392 billion yuan upon full capacity utilization, Sehwa Technology is well-positioned to secure a more prominent foothold in the 10-billion-yuan optical film market. If it successfully enters the trial operation phase as planned in early 2027 and gradually ramps up production capacity thereafter, the company stands to gain significantly.

Of course, uncertainties such as project construction timelines, capacity ramp-up schedules, and demand fluctuations in the downstream panel industry necessitate continuous monitoring. For Sehwa Technology, 2027 represents a pivotal starting point for capacity realization and a crucial transition from "technological breakthrough" to "scaled establishment." OFweek Optical will persist in tracking its subsequent progress.