What They Say
On its blog, DSCC said that flat panel revenues hit a new peak in Q3 2021, but the drop in LCD panel pricing is reducing profits. The company released an interesting chart with the results from 14 publicly traded panel makers. Total revenue increased by 4% from Q2, and 27% from 2020 to $39.3 billion. BOE is top in terms of revenue with $8.7 billion. Samsung was up by 25% from Q2 to nearly 20%, while LG was flat with 16%. Then there is a cluster of four companies between 8% and 9% share: AUO, Innolux, CSOT and Sharp, each with revenues in the range of $3.3 billion – $3.6 billion.
Net profit figures exclude Samsung and Sharp, which do not report net profits of their display businesses, but the rest of the display industry posted a net profit of $3.5 billion in Q2’21, the second highest total ever. BOE led the industry with a net profit of $1.1 billion, followed by Innolux, AUO and CSOT.
The article also showed how display industry margins peaked in Q2 2021. Although declining, they remain at healthy and historically high levels. It also looks at EBITDA, inventories and free cash flow, so worth a look if finance is your interest,
What We Think
There is a lot of useful information in this article. (BR)
Overall Revenues
Panel Maker Operating Results, Q3 2019 to Q3 2021
