We see (1) the mid-/large-size LCD (TV, IT) and large-size OLED (WOLED) segments remaining in the red as the global economic slowdown erodes demand and (2) the small-/mid-size OLED (P-OLED) segment’s profit margins affected by fluctuations in capacity utilization (caused by North American clients’ new model releases). Given the unpredictability of downstream demand, LGD profit margins should be affected by (1) LCD line restructuring, (2) increases in large-size OLED panel shipments and (3) investment efficiency.
Business Korea
Jeff Kim of KB Securities was analyzing LG’s financials in Business Korea, and sending out positive vibes about demand in the second half of 2023. One factor that influenced his opinion is the potential strength of the European economy. There seems to be some sanguinity about the market there and that’s good news for display vendors.
