LCD TV panel prices continue to rise during the traditional stocking season

LCD TV panels have both increased in quantity and priceData shows that after experiencing a slight month on month decline in revenue in April, the revenue of LCD panel factories has once again entered the growth channel.Recently, InnoLux Corporation, the leading panel enterprise, released its June revenue report, which showed that the operating revenue of the month was NT $19

LCD TV panels have both increased in quantity and price

Data shows that after experiencing a slight month on month decline in revenue in April, the revenue of LCD panel factories has once again entered the growth channel.

Recently, InnoLux Corporation, the leading panel enterprise, released its June revenue report, which showed that the operating revenue of the month was NT $19.349 billion, up 3.4% month on month; The shipment volume of large-sized panels was 12.4 million pieces, an increase of 10.6% month on month. In May, the operating revenue of InnoLux Corporation and the shipment of large size panels increased by 9.8% and 10.9% month on month respectively.

AUO Corporation achieved an operating revenue of NT $21.8 billion in May, up 17.4% month on month; The total shipping area reached 2.047 million square meters, an increase of 24.7% month on month.

The rebound in performance of LCD panel manufacturers is mainly due to the continuous increase in mainstream size LCD TV panel prices since March. According to monthly data monitored by Qunzhi Consulting, a reporter from China Securities News calculated that from March to June, the average price of each 32 inch and 55 inch LCD TV panel increased by $9 and $33 respectively, with a cumulative increase of 32.14% and 38.37%, respectively.

Furthermore, the active and sustained production control by panel manufacturers and the resonance of terminal demand are the driving forces behind the price increase of LCD TV panels in this round. Jibang Consulting estimates that global television shipments in the second quarter will reach 46.63 million units, an increase of 7.5% month on month and 2% year-on-year, marking the first time in seven consecutive quarters that there has been a 2% year-on-year growth rate. The reason is that domestic TV brands have strong momentum in stocking up during the "618" e-commerce festival, and some domestic brands' overseas market sales have exceeded expectations.

Zhang Hong, Chief research officer of Qunzhi Consulting TV Business Unit, said that although terminal demand did not recover strongly in the first half of the year, as the concentration of panel supply side increased - the share of LCD TV panels of the top three panel factories in the world reached about 70%, panel factories' bargaining power was strengthened. At the same time, under the influence of the active and continuous production control strategy of top panel manufacturers, the prices of LCD TV panels have risen beyond expectations, and panel manufacturers have gradually emerged from the deep loss quagmire, ushering in the dawn of profits.

The reporter learned that since May, except for the G10.5 generation line, which did not achieve overall profitability due to high depreciation costs, all other generation line LCD TV panel products have returned to profitability levels.

The bargaining power of panel manufacturers continues to increase

The industry believes that the third quarter is the traditional peak season for TV panel stocking, and maintaining an increase in LCD TV panel prices is a high probability event.

Jibang Consulting predicts that in July, the average prices of six LCD TV panels, including 32 inch, 43 inch, 50 inch, 55 inch, 65 inch, and 75 inch, will increase by $2, $3, $6, $6, $7, and $8, respectively.

Qunzhi Consulting predicts that thanks to the collaborative production control of the head panel factory, the 32 inch LCD TV panel will maintain the $2 price increase in June in July; The 50 inch and 55 inch LCD TV panels will increase by $5 per piece.

Overall, panel manufacturers hold a relatively optimistic attitude towards the second half of the year. "Throughout 2023, it is expected that the trend of large-scale TV products will resume, and is expected to promote the growth of panel demand area. In the long run, factors such as the continuation of large-scale products, the improvement of new technology penetration, and the expansion of application scenarios will lay the foundation for the upgrading of the industry structure, and drive the growth of panel demand." BOE Technology A said in a survey of institutional investors a few days ago, according to the analysis and prediction of the consulting agency, The mainstream LCD TV panel prices will maintain an upward trend in the third quarter. Due to the traditional stocking peak in the third quarter, it is expected that global TV shipments will increase by 13.5% month on month to 52.92 million units.

TCL Technology recently stated on the Interactive Easy platform that with panel companies producing on demand, the prices of major large-sized products have continued to rise for more than half a year, and the profitability of panel companies is gradually improving. The company will continue to improve production efficiency, optimize product structure, enhance R&D and innovation capabilities, create products with differentiated competitive advantages, and improve the company's position in the market and Bargaining power.

It should be noted that Jibang Consulting believes that due to the divergence between panel prices and terminal selling prices, TV brands can only reduce overall production costs by early stocking in order to maximize profits. Therefore, it is expected that global TV shipments may slow down in the fourth quarter, with a quarter on quarter growth rate converging to 4.5%. The shipment volume is about 55.13 million units, a decrease of 5.1% compared to the brand's shipment plan at the beginning of the year. It is not ruled out that there is a possibility of further downward revision.

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