What They Say
AUO has reported its Q2 result with revenues of $3.44 billion, up 15.3% from Q1 and net profit was $691 million (operating profit of $726 million). Gross margin was 28.7% and operating margin was 21.2%. The firm said that area shipments were 6.4 million m², up just 0.2% YoY and 0.8% from Q1. The short term outlook seems healthy with commercial display makers re-stocking and solid demand from brands for year end sales.
LG held its investor conference and confirmed its results. It also said that it has an additional 30K of substrates coming from Guangzhou next year, to bring its large panel capacity up to 10 million TV panels in 2022, with further productivity improvements expected to yield 11 million in 2023. The company also said it is making a lot of effort to get its P OLED flexible displays into the automotive segment with an emphasis on making it the best display for EVs, but it still has some work to do.
TV LCDs are down to around 15% of the business and the spokesmen highlighted that the LCD business has and is being re-aligned, not closed.
What We Think
Happy days for the panel business! (BR)
