Most of us spend hours a day staring at a computer screen or tapping a cell phone, followed by more hours in front of a big-screen TV. So we spend much of our waking lives screen-bound.

And Pacific Wealth Aggressive holding LG Display is the world leader in the technology we stare at an increasing large portion of our lives. In terms of both market position and technological know-how, this Korean company represents the kind of Pacific Basin firm that every portfolio should include.

Its share price has been weak in the last year and prices of its products are being squeezed, but the display business is central to today’s life. Plus, you’re buying market leadership cheap.

A Growing Market

LG Display is currently attractively priced, trading at 6.1 times trailing four-quarter earnings and only 5.5 times estimated 2016 earnings. It also offers a modest 2% dividend yield. The company has little leverage, with only a 10% debt-to-equity ratio as of March 2015, and more than $2 billion in cash and short-term financial assets.

Despite the highly competitive nature of the display business and the risk of technological obsolescence, LG Display’s leading position, solid financial standing and relatively low valuation make it a highly attractive holding.

The display market has grown exponentially since the first TV monitors, and now stretches across every facet of the information technology industry, with major display markets in televisions, monitors, notebook computers, tablet computers, telephones and now watches.

All in the Wrist

LG Display is the principal supplier of displays for the Apple Watch.

The growing popularity of smart watches is a boon for LG Display, and it got in early and now dominates the category.

In the first quarter of 2015, by making the screen for the Apple Watch, LG Display achieved a 68% share in unit sales of smart watches and a 91% share in revenues.

LG Display is also the clear leader in organic LED (OLED) displays, a technology that is expected to become a $16 billion market by 2020.

The company is well diversified across all sectors of the display business, with concentration in large and high-technology displays.

The global display market is highly competitive, with massive Chinese competition, primarily at the low end, which LG Display counters by manufacturing scale and the ability to manufacture in its own Guangzhou plant. Since 2011, the market has moved from traditional televisions, monitors and notebook computers to smartphone and tablet products.

LG Display’s stock price has been knocked in 2015 by fears that prices of LED displays are declining, affecting profitability. But business is looking up.

LG Display’s selling price per square meter was up 4% in the first quarter of 2015 from the previous year. In terms of shipments, in the first quarter of 2015 shipments were up 18% from the previous year’s first quarter. In general, any softness in the smartphone market should affect LG Display less than its competitors, because of its concentration in large and high-tech displays.

The company is a major holder of intellectual property, with 26,518 patents at the end of 2014, and can therefore expect to benefit substantially from the Trans Pacific Partnership, with its strengthening of intellectual property protections in the treaty’s member countries.

LG Display regards intellectual property as critical to its business, enabling it to develop new products and technologies that stand apart from its competitors’. For example, in LCD panels, LG Display differentiates itself through its in-plane switching technology, allowing ultra-HD TV panels and curved monitors. In OLED technology, it produced the first 55-inch OLED 3-D television in 2013 and supplies curved ultra-HD panels for televisions, curved plastic OLED panels for smartphones, and round OLED panels for wearable items.

Around 90% of sales are to overseas markets and 10% to Korean markets.

Historically, the business was dominated by Asian producers from Japan, Korea, Taiwan and now China. LG Display sells primarily to brand-name manufacturers.

Incorporated in Korea in 1985, the company absorbed the display businesses of the LG Group (one of Korea’s major chaebol conglomerates) in 1998.

Owns two production facilities in Korea and one in Guangzhou, China.

It had a 19% market share in small and midsize LED displays in 2014, ranking neck-and-neck with Samsung.

It was a clear leader in large-scale displays, with a 27% market share and segment market shares ranging from 25% in televisions to 33% for monitors.