DSCC has published a blog with its data on the sales by panel makers in Q2 2017 which rose 1% compared to Q2 and by 25% year on year to $26.8 billion. There was weakness in small/medium panel sales and pricing, but there were changes in product mix that offset that.
Samsung was the largest supplier by revenue with 25.4% share (up from 23.8%) because of strong OLED demand, while LG Display fell back from 23.0% to 21.8%. BOE, Sharp, CSOT and Tianma also increased in share, while JDI, Hannstar, CPT and AUO dropped back. Sharp saw 18% quarterly growth and only JDI and CPT (who closed fabs) did not achieve year on year growth in double digits.
Margins remain positive and Hannstar was top in gross margins at 29% (although this was down from Q1) although Samsung doesn’t release gross margins. Samsung was top in operating margins at 22% in both its LCD and OLED businesses. OLED is expected to be more profitable for Samsung going forward. Innolux at 19% and HannStar at 18%. JDI and CPT had negative operating margins in Q2’17.
Inventories rose in Q2 as did Capex to a record high at $9.3 billion, with Samsung accounting for 43% of the investment at $3.98 billion. Free cash flow almost got into positive territory and AUO and Innolux both enjoyed positive free cash flow of more than half a billion dollars.
Canon is the biggest winner in gaining revenues (up 298% YoY at $607) although AP Systems saw the most growith at 331%. There is a full table of results on the DSCC website.