What They Say
AUO and Innolux released their results for January with the former saying that although it was down in revenue by 12.4% from December 2021, it was up by 4.5% year on year. The revenue decline was in line with the area reduction at 12.2% at just under $1 billion.
Innolux said that its revenue was down 9.5% month on month to $861 million, and down 12.7% on January 2021. While large panels were up 2.4% from December to 12.4 million, small and medium panels were down by 22.3% to 23.01 million.
Innolux also announced its Q4 result, with revenues of $2.87 billion and operating profit of $179 million. In 4Q21, in terms of product application, Mobile PC, Mobile & CP, Desktop, and TV panels accounted for 35%, 26%, 13% and 26% of net sales, respectively. In terms of product size, 10-inch and below, 10-to-20-inch, 20-to-30-inch, 30-to-40-inch, 40-inch-and-above panels accounted for 19%, 38%, 15%, 4%, and 23% of net sales, respectively.
For the year, the firm saw sales of $12.57 billion and operating profit of $2.25 billion with panel sales area up by 1.82% to 28.57 million m².
Looking forward to the first quarter of 2022, as the subsequent launches of new TV series from customers will drive end demands, Innolux expects that the price decline in TV panels will gradually ease up. Demands for IT products such as monitors and notebooks will still remain stable and as for industrial, commercial, and automotive products, demands will still be relatively balanced
What We Think
What a great year 2021 was for panel makers. The comparison on an annual basis will look relatively grim, I think. (BR)
