Innolux Corporation reports net profit of NTD 2.2 billion in 2018

Innolux Corporation has reported its 4Q18 consolidated revenues of NTD 72.2 billion, operating loss of NTD 1.4 billion, net loss of NTD 0.7 billion, a basic EPS of NTD –0.07, depreciation and amortization of NTD 8.7 billion, and capital expenditure of NTD 11.8 billion. For the full year of 2018, the company has reported consolidated revenues of NTD 279.4 billion. Gross profit was NTD 26.8 billion, for a gross margin of 9.6 percent. Operating profit totaled to NTD 4.8 billion with an operating margin of 1.7 percent. Net profit amounted to NTD 2.2 billion and EPS equaled NTD 0.22.

In 4Q18, the company shipped 8.05 million square meters, a decrease of 3.9 percent quarter-on-quarter. Blended area ASP for TFT-LCD panels averaged USD 292 per square meter. Small- and medium-sized panel revenues were NTD 16.1 billion in 4Q18, a decrease of 11.5 percent quarter-on-quarter. The company shipped 594.2 thousand square meter area of small- and medium-sized during 4Q18, a decrease of 21.7 percent  quarter-on-quarter. The company shipped 30.64 million square meters of panel in 2018, an increase of 7.62 percent over 28.47 million square meters in 2017. For the full year 2018, the company shipped 272 million for small-and-medium-sized units, a 0.4 percent increase over the 271 million units shipped in 2017.

In terms of product application, mobile and CP, mobile pc, desktop, TV panels accounted for 24 percent, 20 percent, 13 percent, and 43 percent of net sales, respectively. In terms of product size, 10-inch and below, 10- to 20-inch, 20- to 30-inch, 30- to 40-inch, 40-inch and above panels accounted for 22 percent, 23 percent, 16 percent, 4 percent, and 35 percent of net sales, respectively.

Due to slipping panel market prices, revenues declined 2.3 percent quarter-on-quarter in 4Q18. However, the company continued to generate profits with gross margin and EBITDA margin achieving 6.2 percent and 10.0 percent, respectively. In 2018, under macro uncertainties and trade dispute circumstances, the company still delivered net profits and a basic EPS achieving NTD 2.2 billion and NTD 0.22, respectively.

Entering into 1Q19, the market price of large-sized panels is expected to bounce and the shipments in small and medium-sized panel may decline due to the oversupply of smart phones. The company is anticipating to face the situation of macro uncertainties and oversupply of worldwide panels in 2019. However, the company plans to dynamically adjust its product line and product mix to respond to market fluctuation, aiming to achieve long-term profitability and operation stability. It will proactively develop new business and technology.

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