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LGD Previews Q221 Revenue of 6.96T and a Net Profit Margin of 6.1%
LG Display Co.’s preliminary estimate of Q221 revenue was 6.96T won ($6.03B) up 1.2% sequentially and 31.3% Y/Y. Estimated profits soared to a four-year high result on strong demand for high-definition home screens, strengthening prices, and increased capacity from its new OLED factory in China. Net profit jumped 59.4% sequentially to 423.8B won, reversing from a loss of 503.8 billion won last year. For H121, operating profit was estimated at 1.22T won.
LGD strong performance is still dependent on rising large area LCD prices and demand. The true state of the company’s financials will not be revealed until the inevitable drop in large area LCD prices, when volume and profit growth will be purely a function of the health of its OLED strategy, which includes short term actions to increase both Gen 6 and Gen 8.5 capacity. Longer term is the decision to fund its Gen 10.5 OLED fab in Paju.
LG Display Co.’s preliminary estimate of Q221 revenue was 6.96T won ($6.03B) up 1.2% sequentially and 31.3% Y/Y. Estimated profits soared to a four-year high result on strong demand for high-definition home screens, strengthening prices, and increased capacity from its new OLED factory in China. Net profit jumped 59.4% sequentially to 423.8B won, reversing from a loss of 503.8 billion won last year. For H121, operating profit was estimated at 1.22T won.
LGD strong performance is still dependent on rising large area LCD prices and demand. The true state of the company’s financials will not be revealed until the inevitable drop in large area LCD prices, when volume and profit growth will be purely a function of the health of its OLED strategy, which includes short term actions to increase both Gen 6 and Gen 8.5 capacity. Longer term is the decision to fund its Gen 10.5 OLED fab in Paju.
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Barry Young
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