LCD panels have been very profitable in the second quarter of this year. How about half a year's profitability? We need to see how the LCD panel quotations after three consecutive quarters of big increases. In April this year, the quotations continued to rise sharply. However, although the quotations continued to increase in May, the quotations eased a bit in late May and did not rise as sharply as in April. . Panel prices are expected to continue to increase in different sizes in June. I don’t know whether prices will continue to rise in the second half of the year. It depends on the consumption changes in Europe and the United States after they are unblocked.
According to the survey data, from the fourth quarter of last year to the first quarter of this year, the prices of similar TV panels and notebook computer panels have risen by approximately 12-18% in the two quarters. This shows that the rise is still very strong. Even computer screen panels have increased by single digits for two consecutive quarters.
Driven by this year’s supply chain shortage of materials and increased component prices, the average prices of the three major application panels continued to rise in May this year. In fact, the price of laptop panels was the most stable, rising by 5%-7% for two consecutive months. However, the price increase of TV and computer screen panels moderated at the end of May.
According to data, the price of mainstream panels continued to rise in June this year, but the upward trend is not synchronized. The price increase of IT application panels may be similar to that of the previous month, but some sizes of TV panels are subject to supply chain shortages leading to increased inventory of semi-finished products and there is regulatory pressure As a result, the quotation may only rise slightly by about 1-2 dollars.
As the timing enters the third quarter, panel prices are facing a turning point where supply and demand may rebalance. On the one hand, Huaxing Optoelectronics in mainland China has increased the utilization rate of its 11-generation line and expanded its supply of large-size products such as 65-inch and 75-inch. The new 8.6-generation plant of Huike Changsha has also been opened this year to join the supply ranks.
On the other hand, semiconductor and panel prices have risen for several quarters. Now the cost pressure on the brand side has risen a lot. Whether brand owners can smoothly pass the cost to the terminal price and whether consumers accept it needs to be observed.
In addition, with the massive launch of European and American vaccines, successive unblocking, and the restoration of tourism, whether the focus and direction of consumption in the European and American markets have changed, which will affect the momentum of demand for IT products and TV products in the second half of the year is also worth watching.
Judging from the panel quotations in April and May this year, and most sizes still have room for continued growth in June, panel makers including AU Optronics (2409), Innolux (3481), and Caijing (6116) made profits in the second quarter. There should still be a beautiful performance. The profitability in the second half of the year depends on the see-saw of various variables.
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