LG Display is continuing sales boom in the first quarter, traditionally considered as an off-season, this year. The industry even forecasts that LG Display which recorded the largest performance at all-time last year will accomplish operating profit of utmost 454million dollars(KRW 500 billion) in the first quarter this year.
According to the industry on Feb.23, LG Display kept on improvement in performances beyond expectation this first quarter. Usually, due to seasonal influence in display industry, this company showed downturn of sales in the first and second quarter. On the other hand, it indicated upturn in gross sales and profit in the third and fourth quarter. But this first quarter, even considered as a low season, is keeping on upturn in sales performance running on from the second half of last year.
Last year, LG Display was relatively slack in operating profit of KRW 94 billion in the first quarter and KRW 163 billion in the second, respectively. It showed distinct deviation per quarter with operating profit of KRW 474 billion in the third quarter and KRW 625 billion in the fourth last year.
But the atmosphere is totally different this year. The market consensus to operating profit of LG Display in the first quarter ( performance average estimated by stock firm ) amounts to KRW 370 billion. Daishin Securities raised the estimated operating profit of LG Display in the first quarter up to KRW 536.2 billion. The more latest the estimated value is, the higher the expectation value of operating profit is.
Meanwhile, LG Display showed great interest in overcome of seasonal performances with fluctuation per quarter. However, it is analyzed that this upturn of performance in this first quarter attributes to more impact on situations in display industry rather than its own efforts.
Last month, despite the low season, shipments of TV panel(based on unit) were increased to 3% compared to the previous month. The amount of falling in demand of IT panel accounted for only 4%. Generally, panel is in strong demand. It is estimated that by stabilization of panel price, the profit of display companies show beyond expectation value.
The exchange rate is also friendly. The won-dollar exchange rate is KRW 1,092 on average which is higher than KRW 1,060 last year. It is estimated that green light is shown to export-driven domestic display industry.
"The operating profit of LG Display in the first quarter will go far above expectation of industry," said Kim Kyung-min, analyst of Daishin Securities. "But it is necessary to note possibility of downturn in TV panel price and also enlargement of medium-small LTPS line by Innolux in Taiwan and Japan Display, henceforth."
Senior Reporter Kim,Seung-kyu seung@etnews.com