According to Korean media reports, NH Investment Securities issued a report that pointed out that in LG Display ’s first quarter earnings conference call, some positive signals were confirmed. That is, in the second quarter of 2020, the increased demand for IT panels in the market and the increased utilization of OLED capacity will drive the company's revenue improvement.
NH Investment Securities stated that in the second quarter of 2020, the market ’s increased demand for IT (notebook, tablet, display) panels should prevent LG Display ’s profitability from declining; at the same time, it was affected by the launch of new products by its customers and its China The normalization of the operation of the new 8G OLED production line should enable the company to improve its profitability.
The
The report pointed out that LGD said in the financial report conference call that it is expected that due to the cancellation of large-scale sports events, TV panel shipments will decline in the second half of the year. However, NH Investment Securities predicts that large-size LCD and OLED IT panel shipments will increase from 68% in the first quarter to 73% in the second quarter.
At the same time, NH Investment Securities predicts that LGD's OLED sales strategy should remain unchanged in the second half of the year, while shipments of small and medium-sized OLED panels may be concentrated in the second half.
It is worth noting that LGD also mentioned new OLED TV customers, such as Huawei and Vizio, in the earnings call. In this regard, NH Investment Securities expects that LGD ’s OLED business will achieve profitable growth in the second half of 2020, sales will increase to 5.26 trillion won, and operating income will climb to 800 million won (compared to the first half of 2020 (Sales are 2.43 trillion won, and operating losses are 0.6 trillion won).
