The panel quotation was in line with expectations, and AUO Group's Q1 was stable

With the TV supply chain after more than half a year of inventory clearance, the supply and demand structure has improved recently, in addition to the 32-inch and 43-inch panels are expected to lead the decline, larger-sized panels above 50 inches also have the opportunity to bottom before the bottom of the first quarter. Although the IT panel seems to have to be corrected for a period of time in the short term, on the whole, the panel quotation trend is roughly in line with expectations, and the operating performance of AUO Optoelectronics and Innolux Optoelectronics in the first quarter has the opportunity to stabilize.

Among them, all the sizes of IT panels, regardless of specifications, basically began to decline significantly from December last year, and it is currently speculated that it may fall all the way to June. Although the panel manufacturers strive to stabilize in the second quarter, it is quite difficult from the perspective of supply and demand.

The main thing is that it is now too much supply of IT panels. Because the price of IT panels is good and the profit margins are still good, the panel manufacturers are very active, and no one is willing to stop first, resulting in oversupply. But because the IT panel has risen so much in the past few months, it is difficult to fall to the cost even if it falls for half a year now, so don't worry too much for the time being.

The situation of TV panels has not changed much, including 32-inch and 43-inch basic size panels after more than half a year of inventory clearance, driven by inventory replenishment, demand is relatively rebounding, supply and demand structure is improving, plus quotations are also close to cash costs, at this time it is reasonable to stop falling.

Even though the quotation of large-size TV panels above 50 inches may continue to fall, it is initially estimated that all size TV panels may have the opportunity to bottom out before the end of the first quarter, and then the second quarter quotations have a chance to be flat. Because the TV panel area is large, it is an important capacity destocking project for the panel manufacturer, and the stable quotation helps to maintain the cost control gross profit.

As for the news that Samsung is about to stop all LCD LCD panel production, from the actual situation in recent years, after all, Samsung is a very strategic company, and whether it will really stop production at that time can continue to be observed.

Source: MoneyDJ News

Cover image source: Paixin.com