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AUO Surpasses Expectations with Revenue Surge, Innolux Shows Resilience Amid Market Challenges

While AUO celebrates significant growth in panel shipments and revenue, Innolux navigates a modest downturn with a positive outlook on the recovering display panel sector
Taiwan
a 2409.TW Mid and Small Cap 2000 Tech 350
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AU Optronics (AUO) and Innolux, two of the leading panel manufacturers, unveiled their financial performances for February, revealing contrasting outcomes but a shared optimism in the industry’s trajectory. AUO reported a robust consolidated revenue of 19.83 billion yuan, marking a 7.5% increase from January and an impressive 23.5% rise year-over-year, substantially exceeding market forecasts.

In contrast, Innolux experienced a dip in its February revenue, posting 13.9 billion yuan, which represents a 16% decrease from the previous month and a 10.5% fall compared to the same period last year. Despite this, the combined revenue for January and February tallied at 30.367 billion yuan, indicating an 8.1% uplift from the previous year, signaling a gradual resurgence in the display panel market.

AUO’s financial uplift is attributed to the climbing TV panel prices in February and a notable increase in shipments of large-size panels, culminating in a combined revenue of 38.274 billion yuan for the first two months, up by 19.59% on an annual basis. The company also reported a significant 10.1% monthly and 23.1% yearly increase in total panel shipment area for February.

On the other hand, Innolux faced challenges due to seasonal effects and reduced working days, leading to a decline in shipments for both large-size and small to medium-size panels. However, the company remains hopeful, buoyed by recent urgent orders for TV panels, indicating a potential market rebound.

Market research insights from TrendForce further bolster this optimism, highlighting a continued price increase for TV panels into March, which is also positively impacting the pricing of other display panels. Both AUO and Innolux are navigating the evolving market dynamics, with AUO leveraging the rising demand effectively, while Innolux anticipates a broader recovery, symbolized by their expectation of “a whole flock of swallows flying in,” indicating a robust turnaround in the near future.

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