April Panel Producer Results
Large panel LCD sales saw a decline of 2.1% in April after a large increase in the previous month. Large panel shipments also declined (-6.6%) but large panel ASP increased by 4.8% offsetting much of the unit volume decline, while on a y/y basis the large panel segment was up 65.6%. On a regional basis the industry saw growth in large panel sales in only one region, China, where sales were up 4.0% m/m and up 82.1% y/y. On a weighted average regional basis, the industry saw a decline of 1.5% in sales in April, but on a weighted average basis saw y/y growth of 50.6% this year.
Among those panel producers that are focused on large panel production[1] those with positive m/m April results are in the 1st column in order of gain and those with negative m/m sales are in the 2nd column from largest to smallest. We note that while Panda (600775.CH) shows up as a big gainer in April on a m/m basis, the sale of two of their fabs at the end of last year, makes their y/y April comparison -57.9%. Both Samsung Display (pvt) and LG Display (LPL) have also rationalized their large panel LCD production, but LG Display still remained up 18.3% y/y in April, while Samsung Display was down 58.3% during the same period.
Panel producers remain in an advantageous position, with demand outstripping supply, but the ASP increases seen each month must be maintained going forward as shipments decline, a result of component shortages, with mix shift limited by those same shortages. Large panel sales, on a m/m basis, have declined each month this year other than March, which saw a large (13.4%) increase as the New Year holiday in China ended and inventory needed to be replenished. Thus far large panel demand has remained strong enough to offset component shortage based delivery push-outs, but at the first sign of weaker demand, panel producers will begin to see their absolute control over panel pricing erode. That said, thus far this year, even with relatively flat unit volumes, panel producers have been able to show very strong y/y results, but will see those comparisons getting more difficult for the remainder of the year. Without the aggressive panel price increases we have seen over the last year, the game will become more difficult for panel producers going forward.
[1] We exclude Hannstar, IVN, Japan Display, Panasonic, and Tianma
Among those panel producers that are focused on large panel production[1] those with positive m/m April results are in the 1st column in order of gain and those with negative m/m sales are in the 2nd column from largest to smallest. We note that while Panda (600775.CH) shows up as a big gainer in April on a m/m basis, the sale of two of their fabs at the end of last year, makes their y/y April comparison -57.9%. Both Samsung Display (pvt) and LG Display (LPL) have also rationalized their large panel LCD production, but LG Display still remained up 18.3% y/y in April, while Samsung Display was down 58.3% during the same period.
Panel producers remain in an advantageous position, with demand outstripping supply, but the ASP increases seen each month must be maintained going forward as shipments decline, a result of component shortages, with mix shift limited by those same shortages. Large panel sales, on a m/m basis, have declined each month this year other than March, which saw a large (13.4%) increase as the New Year holiday in China ended and inventory needed to be replenished. Thus far large panel demand has remained strong enough to offset component shortage based delivery push-outs, but at the first sign of weaker demand, panel producers will begin to see their absolute control over panel pricing erode. That said, thus far this year, even with relatively flat unit volumes, panel producers have been able to show very strong y/y results, but will see those comparisons getting more difficult for the remainder of the year. Without the aggressive panel price increases we have seen over the last year, the game will become more difficult for panel producers going forward.
[1] We exclude Hannstar, IVN, Japan Display, Panasonic, and Tianma
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LArge Panel Shipments By Application - Source: SCMR LLC, IHS, Witsview, Company Data
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