What They Say
AUO and Innolux released their quarterly financials for Q3 2021. AUO was up in revenue by 3.6% QoQ to 3.56 billion with profit of $694 million. Area shipped was 6.44 million m², up 0.7% from Q2, but down 6.1% from Q3 last year. TV panel sales and prices were weak, while IT and panels for retail and industrial systems were firm.
Innolux shipped 7.32 million m², up 3.2% on the quarter, and blended area ASP was $449 per m². In 3Q21, in terms of product application, Mobile PC, Mobile & CP, Desktop, and TV panels accounted for 31%, 24%, 13% and 32% 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%, 34%, 15%, 6%, and 25% of net sales, respectively.
Revenues were up 11% on a year ago, but cost of goods was down by 6.2%, so gross margin rose from 9.3% to 28.9% from a year ago, but down from 33.1% in Q2. Net profit was $668 for the quarter.
What We Think
Happy financial days for panel makers are continuing for now, but there are going to be colder winds for financial directors soon. AUO has done more to move away from TV and should be more stable than Innolux going forward. (BR)
