Affected By The Epidemic, IT Products Have A Wave Of Goods

- May 04, 2020-

Although LGD has suffered losses for five consecutive quarters, the losses in the previous quarter have shrunk. LGD bluntly stated that "visibility is not high, and demand fluctuations have increased." The spread of the epidemic in Europe and the United States impacted market demand, and market dynamics became the focus of attention in the second half of the year.

 

Last week, LGD and Ruiyi held legal seminars, and they all released optimistic views on the demand for IT products driven by the housing economy in the second quarter. In particular, LGD and Ruiyi are Apple iPad and MacBook suppliers. Cargo momentum is strong, Ruiyi estimates that the second quarter revenue will have a quarterly growth rate of more than 60%. LGD also revealed that IT products, because countries have offered stay-at-home measures, have increased online office and learning needs, and will actively seize this wave of business opportunities to take advantage of the company.

 

However, the epidemic of Coronavirus has spread in Europe and the United States, and many retail stores have closed, impacting the end market demand. Not only are sales of cars, TVs, and smartphones affected, but the market is also worried that after this wave of IT product pulls, the third season will not be prosperous. LGD released a conservative message on the outlook. LGD Chief Financial Officer Dong-hee Suh said that with the new coronary pneumonia epidemic impacting the panel industry, we expect future demand fluctuations to increase and the current difficult situation may continue.


LGD suffered a huge loss of NT $ 79.2 billion throughout the year last year. Although revenue fell in the first quarter of this year, due to the rebound in TV panel prices and the adjustment of the business structure, the loss was significantly reduced. In the first quarter, revenue was approximately 125.044 billion yuan, operating losses were approximately 9.582 billion yuan, and after-tax net losses were approximately 5.268 billion yuan. This year, the LCD panel business will continue to converge, and the OLED panel production capacity will be increased. It is expected that the interest rate will continue to improve.


This week, Taiwan ’s panel supply chain law has been unveiled one after another. China Optoelectronics held a law conference on the 28th, TPK-KY Chenhong on the 29th, and AUO ’s law conference finale on the 30th. Although the price of TV panels increased in the first quarter and returned to above the cash cost, the new crown pneumonia disrupted the supply chain shipments. The shipment of the first two quarters of the panel Shuanghu was significantly reduced by 15 to 20% compared with the previous quarter. The combined revenue for the first quarter was 53.69 billion yuan, a quarterly decrease of 13.4% and an annual decrease of 19.5%, writing a single-quarter low since 11 years.


Innolux's combined revenue in the first quarter of 2020 was 50.392 billion yuan, a year-on-year decrease of 15.9% and a quarterly decrease of 23.2%, which was a single-quarter low since the 2010 merger. The legal person predicts that the panel Shuanghu's losses in the last quarter are expected to converge, but the panel price reversal in the second quarter, subsequent panel price trends and changes in market demand will be the focus of the law conference.