NB Demand Is Strong, Innolux Q3 Operates Better Than Q2

- Aug 28, 2020-

The epidemic catalyzed the demand for laptops. Yang Zhuxiang, general manager of Innolux (3481), said that the previous expansion of IPS production capacity and automated intelligent manufacturing also played a role, which greatly increased the output this year. The average shipment of laptops this year increased by 1.5 times. The electronic panel shipment ranking has jumped to second place in the world. In the post-epidemic era, in addition to IT panels, the demand for medical and automotive panels has also increased. At present, the visibility of orders is high. The first quarter of this year bottomed out and the second quarter heated up. The third quarter was better than the second quarter.

Since the second quarter of this year, Innolux’s operating performance has rebounded strongly. In April, revenue returned to the 20 billion mark, and the annual revenue growth rate has also turned positive since May. The cumulative revenue from January to July this year reached 141.048 billion yuan, almost Same as the same period last year. Yang Zhuxiang said that in the first quarter of the outbreak, the company immediately implemented loss control. In addition to ensuring the safety of employees, it also held daily meetings to keep a close eye on the supply chain and plant conditions. From the perspective of operating results, the revenue and performance of the industry in the second quarter surpassed its peers. In the past 10 months, revenue in 8 months exceeded its opponents.

Yang Zhuxiang said that because of the epidemic, there are more than 1 billion schoolchildren in the world who work at home and work at home. According to statistics, the demand for 11.6-inch CromeBook and the larger 14-inch and 15.6-inch laptops has increased greatly because they still need to work at home. Larger screens open video conferences, and time at home becomes longer, which increases the overall demand for tablets, laptops, monitors, and TVs. This year's demand for laptops is strong, and Innolux has adjusted its production capacity, making the average shipment of laptop panels increased by 1.5 times compared with the same period last year. Innolux has previously expanded its IPS panel production capacity, and automation and intelligent manufacturing have also played a role. This has greatly increased the output this year. In July, Innolux's notebook panel shipment ranking has jumped to the second place in the market.

In addition to IT panels, the epidemic has also increased the demand for medical panels. In the first half of the year, due to the closure of car factories, demand for automotive panels was weak. However, in the post-epidemic era, personal driving is safer than taking public transportation, and the auto market has recovered. Yang Zhuxiang said that on the whole, there is no problem with the panel demand in the fourth quarter, but considering the seasonal situation, the fourth quarter will be slightly worse than the third quarter. This year’s operating performance bottomed out in the first quarter, heated in the second quarter, and delivered a better report card than its peers. The third quarter will be better than the second quarter.

Innolux announced a series of MiniLED products on the 24th, and the world's first rollable MiniLED display also debuted for the first time. Ding Jinglong, executive vice president of Innolux, said that Innolux is divided into two groups, deploying MiniLED backlight and MiniLED display. MiniLED display has contributed revenue, and MiniLED backlight car panels are also mass-produced this year. With the help of Apple, MiniLED has attracted market attention and is expected to accelerate its popularity.