FOLDABLE phones are creating a buzz in the consumer electronics sector, and in China’s equity market.

Display maker Tianma Microelectronics Co. rallied 73 percent this year through Friday, in the lead up to Samsung Electronics Co. unveiling a US$1,980 smartphone with a foldable screen.

Fellow display producer BOE Technology Group Co. had jumped 45 percent since the start of year.

Turnover in both Shenzhen-listed stocks soared as investors bet on hefty demand for screens, especially if Chinese smartphone makers like Huawei Technologies Co. follow Samsung into foldable models.

More than US$612 million worth of Tianma shares traded Wednesday, about 18 times the daily average turnover for last year, while more than US$1 billion in BOE shares traded every day in the past week in Shenzhen, far outdoing Tencent Holdings Ltd., Asia’s biggest stock by market value.

Both companies continued to see heavy turnover Thursday and Friday.

“The surge in flexible panel makers was partly due to valuation recovery, coupled with support from easing liquidity,” said Mark Huang, an analyst with Bright Smart Securities. “Samsung’s release of its foldable phone may kick off a new round of upcycle,” he said.

Investors went beyond panel makers in the hunt for potential beneficiaries of a foldable phone frenzy.

Puyang Huicheng Electronic Material Co., which provides materials used in panels, has jumped 60 percent this year and Shantou Wanshun Package Material Co. is up almost 30 percent. China International Capital Corp. counts both among its top picks for investors to capture the theme. (SD-Agencies)