China Panel Producers
Yesterday we noted that one of China’s better known OLED panel producers, while announcing strong sales and new orders, was also reporting a net profit loss due to expenses relating to the development of products for such new customers. In all fairness, that was certainly the exception to the rule in 1H for Chinese panel producers, who saw massive increases in net profits on a y/y basis. While not all have given projections as to their profit for the 1st half, the table below points to those that have and the improvement over last year’s 1H results, although we note that the improvement in demand and panel prices began late in the 2nd quarter, making such comparisons a bit exaggerated. That said, with both demand and panel prices up, Chinese panel producers were able to leverage the capacity that they have been adding over the last few years. How long that lasts is a much more important question. Gareth L. Powell said it well, “We never know when we’re living through the good times. It’s only when everything turns to ashes and crap we realize how fortunate we really were.”
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