From the financial report, we can know how serious the price decline of LCD panel is. Next, will LCD panel prices continue to decline?
Slipped into the main theme of the LCD panel industry
Recently, AU Optronics, BOE and LG Display successively released the first quarter earnings report for 2018. The financial report shows that revenues of all three panel makers have declined. They have dropped by 15.9%, 19.6%, 1.32% year-on-year, respectively; profits have also been felled. , Although BOE’s net profit attributable to shareholders of listed companies was RMB 2.019 billion, a year-on-year decrease of 16.34%, net profit attributable to listed companies after deducting non-recurring gains and losses was only RMB 966 million, a decrease of 58.01% year-on-year.
In fact, since the loosening of the third quarter of last year, LCD panel prices have continued to decline, and the rate of decline has been very fast. This point, panel makers' profit/net profit and revenue changes are very obvious. As the third quarter of each year is Due to the sales season of LCD panels, AU Optronics, BOE and LG Display revenues were not very low, despite panel price declines in the third quarter of last year. BOE in particular, as BOE Fuqing's 8.5-generation capacity increased gradually, its supply capacity increased. , The third quarter revenue is still at the highest level of the year.
However, with the further decline in LCD panel prices in the fourth quarter, AU Optronics, BOE revenue began to explore, AU Optronics, BOE and LG Display saw a substantial decline in profit/net profit: BOE’s net profit margin in the fourth quarter of 2017 was declining. 1X; AUO’s net profit attributable to shareholders of the parent company for the fourth quarter of 2017 fell by more than 1 times; LG Display’s operating profit for the fourth quarter of 2017 decreased by 95% year-on-year, the lowest level in nearly two years, and the decline was even worse than the previous quarter, exceeding 12%. Times (of course, LG Display's loss may be related to increasing OLED investment, subsidizing OLED TV brand manufacturers and other factors).
Overcapacity worries are turning into reality
In addition, LCD panel prices continued to decline. Data from the State-of-the-Art Optoelectronics Research Center showed that global TV panel prices have entered the price inflection point since the second half of 2017 and fell for nine consecutive months. As a result, demand has not recovered and the price has continued to fall. Will continue to squeeze panel makers to profit. The 32-inch-65-inch TV panel prices have maintained a range of 3-10 US dollars decline, including the average price of 65-inch panel in March 2018 dropped to 300-290 US dollars, in April is expected to drop to 280 US dollars. , is already quite close to the cost.
According to the latest figures from Sigmaintell, March-April, prices for 32-inch panels fell by 3 dollars in March and April, 3 to 4 inches for 39.5 to 43 inches, and 5 dollars for 43-inch panels; 49 Inch -50 inches dropped by 4-5 US dollars; 55 inches by 3 dollars; 65 inches by 10 dollars. Qu Zhi Consulting deputy general manager Li Yaqin accepted "China Electronics News" reporter said that LCD panel prices are entering a new one During the down cycle, the panel price dropped very fast. Take the 65-inch LCD panel price as an example. Last year, the highest price point reached 410 US dollars, which has now dropped to 270 US dollars, a decrease of nearly 52%, and the price is still falling.
The senior research director Xie Qinyi of IHS Markit also believes that in 2018, LCD panels will oversupply, and panel makers will face the pressure of losses in the second quarter. In the next 2-3 years, panel makers will certainly improve by combining and reorganizing or closing old ones.
According to a panel manufacturer's panel purchasing director, although the price of LCD panels has continued to decline, the price of the whole machine has dropped drastically. The price of a 55-inch LCD TV has dropped to RMB 1999, but the market demand is still relatively lukewarm. If it is after May, There is no obvious upward trend in the end market. In view of the current LCD panel production capacity, LCD panel prices are unlikely to show a substantial recovery. Li Yaqin pointed out that panel makers hope to drive the large-size TV market and high value-added mobile phone market. Market demand, thus promoting the growth of the LCD panel market. However, judging from the current situation, the trend of large TV and high-end mobile phones in the past two years may not be as fast as expected. In addition, the overall economic situation, trade friction and other factors may also be Has an adverse effect on the growth of the terminal market.