The display industry has been plagued by oversupply, in both LCD and OLED, and panel maker margins have suffered as a result. Tianma beat the trend and reported solid operating results in Q2 on the basis of its exceptionally high area ASPs and steady shipments.
Tianma reported net income of CNY 354 million (US$52 million) on revenues of CNY 7.7 billion ($1.12 billion). While these figures were down from a year ago, by 3% and 27%, respectively, Tianma’s performance looks better than nearly all its competitors. As shown in the second chart here, Tianma actually managed to increase its gross margin, operating margin, and EBITDA margin compared to a year ago, but its net margin suffered because of increased interest expense and other non-operating expenses.
DSCC Releases Q3’19 Quarterly Display Capex and Equipment Report – Forecasts Extended to 2024 as Visibility Improves
DSCC has released the latest issue of its popular Quarterly Display Capex and Equipment Report. In this issue, forecasts were extended to 2024 as we were able to include a healthy increase in new fabs where probabilities have recently improved. Relative to previous issues, we added the following mobile OLED fabs:
When the news this week hit on President Trump’s tweets about raising tariffs on $300 billion in imports from China, I knew it deserved mention in this blog. I have been saying for quite some time about the US-China trade war that “it will get worse before it gets better”, and up to now I’ve been right. The latest round will be implemented on September 1st unless the US and China reach a deal before then, which I think is unlikely.
Reuters reported this week that Foxconn is in discussions to appoint banks to find a buyer for its LCD factory that is being built in Guangzhou. While Foxconn replied in a written statement that “As a matter of company policy, Foxconn does not respond to market rumors or speculation,” Reuters reported that multiple contacts within Foxconn were involved in the discussion. If true, the sale of such a new plant would be unprecedented in the flat panel display industry.
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