Compiled by Juheng.com Lin Yizhen 2023/1/27
South Korean panel maker LG Display (LGD for short) announced on Friday (27th) that its operating loss in the last quarter hit a record high, reflecting that global demand for smartphones, computers and TVs remains weak amid uncertain economic prospects.
LGD reported an operating loss of 876 billion won , higher than the 797 billion won average estimate of analysts polled by Refinitiv . The company recorded an operating profit of 476 billion won .
LGD pointed out that the reason for the loss is related to the continuous decline in the price of medium-sized panels, as well as the company's measures in inventory management and reduced factory operations.
LGD’s revenue in the last quarter fell 17% to 7.3 trillion won . Among them, TV panels accounted for 25% of revenue, IT equipment revenue including laptops and tablets accounted for 34%, and mobile and other equipment panels accounted for 25%. than 34%, and automotive panels accounted for 7%.
Overall, LGD's 2022 full-year operating loss is as high as 2.08 trillion won , and its annual revenue fell 12.5% to 26.15 trillion won .
For several months, the demand for LCD and OLED panels has declined rapidly, and the poor economy has also dragged down the growth of corporate demand. According to data from research firm Canalys, global desktop and laptop shipments fell 16% to 285.1 million units last year, while smartphone shipments also fell 11% to less than 1.2 billion units.
Canalys predicts that for the PC industry, this challenging environment will continue into the second half of this year, with the smartphone market expected to grow flat or slightly higher.
Analysts estimate that LGD will still be unable to escape operating losses this quarter as consumers cut spending and companies continue to lay off workers.
In order to survive the cold winter, LGD announced last month that it would stop producing LCD TV panels in South Korea and implement voluntary paid leave for some employees in South Korea. The company is also reducing LCD panel production in China and adjusting factory utilization for OLED panels for flagship TVs, analysts said.
LGD said that the company will focus on high-value customized business, and increase the proportion of sales from the current 30% to 50% by 2024, in order to improve stability in an uncertain market environment.https://www.innovtech.tw/hot_450140.htmlPANEL PRICE DROP + SLUGGISH DEMAND, LGD'S LOSSES HIT A NEW HIGH2024-01-182025-01-18
Business Times Yuan Haoting 2022.11.25
In the third quarter, panel makers suffered losses of more than 10 billion yuan, and the outlook for the follow-up market is not optimistic. Peng Shuanglang, chairman of AUO, pointed out that wars, epidemics, and inflation are all killers of economic development, and they have never appeared at the same time. This downturn in the panel business cycle is the most serious one in the past ten years. The previous cycles were all caused by the supply side. Everyone expanded production, resulting in oversupply. This time, the consumer market saw a cliff-like recession and the demand side came. A recession will take a long time to adjust.
Regarding the outlook for the follow-up market conditions, Innolux General Manager Yang Zhuxiang said that there are too many external uncontrollable factors, such as the Russian-Ukrainian war, dynamic clearing, dollar trends, energy policies, etc. will affect the economy and consumption, but none of them can be controlled by enterprises of. In the fourth quarter, panel prices rebounded and rose. How long will this wave of price increases last? He bluntly said that there is no answer, and the price change still depends on whether the demand recovers.
Yuantai electronic paper is in high demand and its performance supplements
Yuantai (8069) will hit a record high in revenue and profit in 2022. The cumulative revenue in the first three quarters of 2022 will be about 21.517 billion yuan, with an annual growth rate of 67%. The gross profit rate will reach 52.46%, with an annual growth rate of 7.96 percentage points. 100 million yuan, an annual increase of 113.4%, and an earnings per share of about 7.08 yuan.
Although the annual growth rate of e-book readers was slightly lower than the previous expectation due to the sluggish demand in the consumer market, the increase in the installation rate of electronic shelf labels and strong demand growth drove the annual operation to a peak. Under the trend of net-zero carbon emissions, the demand for electronic paper is looking forward to. In recent years, Yuantai has aggressively expanded production. The old factory in Hsinchu invested in four new production lines, which will be mass-produced in 2022. The last production line will be in the first quarter of 2023. put into production. In addition, Yuantai plans to open two new material production lines in Hsinchu factory in 2024, and also plans to expand new factories in Taoyuan Guanyin and Yangzhou, China.
BenQ's Medical Business Great Leap Forward
Bright Base Materials (8215)’s consolidated revenue in the first three quarters of 2022 was 11.922 billion yuan, a decrease of 3.9% compared to the same period last year. With the injection of profits from the disposal of the Ruifang plant and the Suzhou plant, the after-tax net profit was about 1.088 billion yuan, with an annual growth of 5.35 billion %, the earnings per share was 3.39 yuan, and the profit surpassed that of last year.
Regarding the follow-up polarizer market situation, Bright Base has a conservative outlook, with a utilization rate of about 65% in the fourth quarter, and this situation is expected to continue in the second to third quarters. And the price of polarizer is still going down.
However, the operation of the medical industry continued to grow. In the first three quarters, the performance of medical products increased by 30% to 40%. Consumer products continued to grow, and the turnover will reach a new high.
Mingjima continues to develop into medical materials, and recently announced the acquisition of Weipu Industrial. The two companies have synergistic effects in technology, operation, and market. In 2023, they will be recognized as consolidated revenue, which will also increase the proportion of polarizer revenue from 80. % dropped to 65%, and the proportion of medical services increased to 30%.
Jingda welcomes unblocked business opportunities
The operating performance of the special-purpose display factory Jingda (4995) has been soaring. In the first three quarters of 2022, the consolidated revenue will be about 1.039 billion yuan, with an annual growth rate of 22.81%. Benefited from the decline in panel and IC prices, the gross profit margin has returned to more than 30%, the after-tax net profit is about 165 million yuan, an increase of 180% compared with the same period last year, and the earnings per share is about 3.93 yuan, which is the highest in the same period of the past.
Jingda is optimistic that in the post-epidemic era, countries will gradually unblock, everyone will go outdoors, game machines will be refurbished, and display boards will be replaced one after another at airports and stations. The demand is quite buoyant. The company has also expanded display emerging applications, and launched an outdoor screen that can be seen in the sun. In addition to displaying charging-related information, it can also play advertisements and will be shipped to the US market. In the future, electric vehicles will have larger display screens and more applications, and Jingda is also working on in-vehicle display applications.
https://www.innovtech.tw/hot_450139.htmlSTAR STOCKS OF PANELS AND COMPONENT INDUSTRY: YUANTAI, MINGJI, JINGDA2024-01-182025-01-18
Business Times Yuan Haoting2022.11.28
South Korean panel makers have reduced their LCD panel production capacity. LGD’s LCD panel production lines in South Korea have completely stopped producing TV panels. The Guangzhou plant plans to transfer 50% of its production capacity to IT panels. Next year’s TV panel shipments are estimated to be only 7 million pieces. Samsung Display will no longer produce LCD panels next year, and it is estimated that the shipments of LCD TV panels by the two Korean panel makers will decrease by another 14 million next year. Korean panel makers withdrew from LCD TV panels, and the two major Korean TV brands will also release panel purchase orders. Taiwan's panel double tiger welcomes the order transfer.
The deteriorating profit rate of LCD TV panels has prompted Korean panel makers to speed up their exit from the LCD panel market. Change strategy. Samsung Display sold its Gen 8.5 line in Suzhou in 2021 and completely stopped LCD TV panel production in its home country of South Korea in 2022. This means that apart from some panel inventory in 2022, Samsung Display will not have any new LCD TV panel shipments in 2023. Samsung Display's LCD TV panel shipments in 2022 will be 4.3 million, but they will mainly be sold to Samsung VD, a subsidiary of the group.
Xie Qinyi, research director of Omdia Display, said that LGD's LCD TV panel shipments in 2022 will be about 18 million pieces. 12 million pieces were lowered to only 7 million pieces. The P7 production line in South Korea will gradually stop LCD panel production in the first quarter of next year, and undergo equipment transformation to convert to WOLED panel production with Oxide TFT as the backplane. As for the P8 production line, the product line will be adjusted. The future product planning will focus on IT, public display and industrial use panels, while gradually reducing the production of TV panels. LGD's 8.5-generation line in Guangzhou produces 55-inch, 65-inch and 75-inch LCD TV panels. In the future, the production capacity allocation of IT panels will increase to about 50%, while the production capacity of TV panels will decrease. With the shutdown of the P7 production line, the supply of 43-inch and 50-inch panels will be stopped. After the restructuring of the P8 production line, the supply of 55-inch, 65-inch, 86-inch and 98-inch panels will be greatly reduced, and the Guangzhou production line will mainly produce 55-inch panels. , 65-inch and 75-inch panels.
The capacity reorganization and shutdown plan of Korean panel factories will not only affect the supply and demand of LCD TV panels in 2023, but also a key indicator for mainland panel manufacturers to further dominate the supply capacity. After the suspension of its own LCD panel supply, the two major Korean TV brands will all rely on outsourcing, and Panel Shuanghu is also expected to undertake more panel purchase orders.
https://www.innovtech.tw/hot_450138.htmlKOREAN FACTORIES STOP PRODUCING LCD PANELS, INNOLUX AND AUO WELCOME TRANSFER2024-01-182025-01-18