AUO, Innolux shares mixed on Q4 sales data
Central News Agency
2014-01-10 11:47 AM
Taipei, Jan. 10 (CNA) Shares of AU Optronics Corp. (AUO) and Innolux Corp. were mixed Friday morning, although the two leading flat panel makers in Taiwan reported better-than-expected sales for the fourth quarter, dealers said. Concerns remained that the flat screen business will continue to face falling product prices in 2014 as Chinese companies gear up to raise production at their 8.5th generation plants, dealers said. As of 11:20 a.m., shares of AUO had risen 0.42 percent to NT$9.59 (US$0.32) with 38.67 million shares changing hands, while shares of Innolux had dropped 0.87 percent to NT$11.45 on trading volume of 51.87 million shares. The weighted index on the Taiwan Stock Exchange was up 0.26 percent at 8,536.91 points. "Judging from their higher-than-expected fourth quarter sales, the two companies are likely to report a net profit for that quarter and for the entire 2013," said Ta Ching Securities analyst Andy Hsu. In the first nine months of last year, AUO reported NT$0.35 in earnings per share, improving from NT$4.81 in loss per share over the same period of 2012. Innolux posted NT$0.72 in EPS, compared with NT$3.65 in net loss per share a year earlier. "But their share prices appeared lackluster this morning as many investors fear that the companies' bottom lines for 2014 will be affected by falling product prices," Hsu said. AUO on Thursday reported NT$102.73 billion in consolidated sales for the October-December period, down 4.1 percent from the previous quarter. The sequential drop beat the market estimate of a 5 percent decline as Chinese buyers built up inventories to meet strong demand during the upcoming Lunar New Year holiday, dealers said. In the fourth quarter, AUO's shipments of large-sized panels totaled 30.17 million units, up 2.8 percent from the third quarter, while its small and medium sized screen shipments in the three month period hit 41.18 million units, down 6.6 percent from the previous quarter. For its part, Innolux said its fourth quarter consolidated sales totaled NT$97.22 billion, little changed from a quarter earlier, but down 25 percent year-on-year. In the October-December period, Innolux's large-sized screen shipments were 32.73 million units, down 4.7 percent from the third quarter, while its shipments of small and medium sized displays rose 4.4 percent from a quarter earlier to 104 million units. "AUO and Innolux shares had posted gains in recent sessions on hopes of better-than-expected fourth quarter sales data. That's why the two stocks appeared dull this morning after the data was released," Hsu said. "Many investors are worried that a supply glut in China could add downward pressure on screen prices, in particular TV panel prices. As large-sized screens comprise the bulk of AUO and Innolux's sales, the impact on their bottom lines could be visible this year," Hsu said. Amid lingering concerns about oversupply, AUO shares could face stiff technical resistance at around NT$10, while Innolux shares are likely to be capped NT$12.2 in the near future, he said. (By Pan Chi-i and Frances Huang)
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