LG Display Sees Increased Demand for IT Panels, OLED in 2Q

Increasing demand for IT panels and OLED utilization growth should improve LG Display’s earnings through the second half of 2020.

The estimated second-quarter sales of LGD are at 4.97 trillion won, up 5 percent on-quarter with operating losses at 0.34 trillion won.

Shipments of IT panel portion of large-sized LCD and are expected to increase from 68 percent in 1Q to 73 percent in 2Q.

The company is expecting a robust demand for laptops, tablets, and monitor that will boost its IT panel production.

Furthermore, new product releases by clients and the expected normalization of operations at its new 8G OLED facilities in China should boost earnings.

However, LGD expects TV panel shipments to decline in 2Q20 due to the cancellation of major sports events.

The company has new OLED TV customers such as Vizio in the US and Huawei in China that would sustain its sales.

The company expects its OLED business to enjoy earnings growth in 2H20, with sales rising to W5.26 trillion, with its operating profit climbing to W0.8 billion.

LGD posted first-quarter sales of W 4.72 trillion and an operating loss of W 3.6 billion.

The company estimates the large-sized LCD IT panel shipments in the first quarter to be close to 70 percent.