Panel shortage and ongoing peaked price both triggered Taiwanese panel makers AUO and Innolux to generate good revenues in November.
AUO’s November revenue reached NT $30.24 billion, down 0.7% from October but up 6.1% year-over-year (YoY). Regarding Innolux, its consolidated sales came to NT $29.2 billion, up 3.9% month-over-month (MoM) and up 14.6% YoY. Both comparisons showed rising results.
After AUO’s November revenues exceeded NT $30 billion threshold, AUO has reached its single month’s NT $30 billion target for the second consecutive month.
The first 11 months’ accumulated revenues in 2016 amounted to NT $297.9 billion. Though this figure was 10% less from a year ago, based on current market demand and prices, AUO’s revenues might stay above NT $30 billion in December.
In such way, AUO not only can rebound to NT $90 billion target in the fourth quarter, but AUO might also hit a new historical high revenue since the second quarter of 2015.
By shipment product categories, AUO’s large size panel shipment attained about 9.16 million units in November, down 2.6% MoM. Its mid-and-small-size panel shipment surpassed 11.54 million units, down 0.4% MoM.
Chairman & Chief Executive Officer – Mr. Paul SL Peng pointed out, the panel market status quo will last in the first half of 2017. This meant a prosperous AUO during a traditional off season. On December 9, AUO’s stock closing price came to NT $11.9 per share, down NT $0.1.
In regards to Innolux, its announced un-audited income of November reached NT $29.2 billion, up 3.9% from October and up 14.6% YoY. The accumulated revenues of the first 11 months in 2016 arrived at NT $254.97 billion, down 24.5% from revenues in the year 2015’s same period (NT $337.709 billion).
According to the shipment product categories, in November, Innolux’ large size panel combined shipment amounted to 10.3 million units, up 6.1% MoM. Mid-and-small-size panel combined shipment totaled 20.27 million units, up 8.7% MoM. In the latest institutional investors’ conference, Innolux expressed, display panel prices have rebounded since second quarter. NB panel prices bounced starting from third quarter. The fourth quarter’s revenues are not expected to be worse than the third quarter’s.
In addition, panel price stably rose because consumed inventory and procurement momentum obviously rebounded ahead of Christmas holidays. Thus, Innolux’s profitability was improved. Moreover, automotive panel, public information display, and medical panel markets have been steadily growing. Therefore, even though shipment is predicted to decline quarter-over-quarter (QoQ), panel makers still have bargain power to increase price. Innolux’ share closing price on December 9 came to NT $11.25 per share, down NT $0.15.