News

Release Date:10/31/2018

Innolux Corporation Announces 2018 Third Quarter Net income of NT$ 1.9 billion

Innolux Corporation (3481.TW) announced its 3Q 2018 consolidated revenue of NT$ 73.9 billion, operating profit of NT$ 1.79 billion, net income of NT$ 1.9 billion, and a basic EPS of NT$ 0.19, depreciation & amortization of NT$ 8.9 billion and capital expenditure of NT$ 12 billion.
 
In the third quarter 2018, the company shipped 8.37 million square meters, an increase of 9% over the previous quarter. Blended area ASP for TFT-LCD panels averaged US$ 289 per square meter. Small and medium-sized panel revenue of NT$ 18.2 billion in the third quarter 2018, an increase of 12.3% over the previous quarter. The company shipped 758.6 thousand square meter area of small and medium-sized during the third quarter 2018, an increase of 12.7% over the previous quarter.   
 
In terms of product application, Mobile & CP, Mobile PC, Desktop, TV panels accounted for 26%, 19%, 14% and 41% of our net sales, respectively. In terms of product size, 10-inch and below, 10-to-20-inch, 20-to-30-inch, 30-to-40-inch, 40-inch-and -above panels accounted for 25%, 22%, 15%, 5%,and 33% of our net sales, respectively.
 
The revenue in the third quarter increased 11.2% over the previous quarter, with the shipment and price met expected growth brought by traditional year-end peak. Operating profit reached NTD 1.79 billion, a 176.8% increased over the previous quarter, with EBITDA 14.5%.
 
The fourth quarter is traditionally unfavourite for panel industry. The trade dispute adds uncertainty to operations too. Innolux estimates the demand of large-size tends to be stable, and the demand of small and medium size will diminish owing to the decline in mobile and automotive application in China market. However, we estimate brand customers would rebuild their inventory level, mainly thanks to double eleven, black-Friday, double twelve and Christmas season. Innolux will flexibly adjust the production line to cope with the market need and stay competitive with its leading technology. The optimization of organization and management team will strengthen Innolux’s ability in innovation and execution to overcome the coming challenge.
 
Based on our current business outlook, the Company expects its 4Q18 guidance as follows:

  1. Large panel
    1. Shipments to be down mid single digit % QoQ
    2. Blended ASP to be up low single digit % QoQ
  2. Small & Medium panel
    1. Shipments to be down high teens digit % QoQ
    2. Blended ASP to be up high single digit % QoQ
 
Table 1: Statements of Comprehensive Income
                                                                                                                                      Units: NTD million except per share data
 
  3Q 2018 2Q 2018 QoQ% 3Q 2017
Net Sales 73,907 100.0% 66,462 100.0% 11.2% 79,508 100.0%
  Cost of Goods Sold 66,475 89.9% 60,599 91.2% 9.7% 63,343 79.7%
Gross Profit 7,432 10.1% 5,863 8.8% 26.8% 16,165 20.3%
Operating Expenses 5,642 7.6% 5,216 7.8% 8.2% 5,270 6.6%
Operating Income 1,790 2.4% 647 1.0% 176.8% 10,895 13.7%
Net Non-operating Income(Exp.) 775 1.0% 367 0.6% 111.5% 781 1.0%
Income before Tax 2,566 3.5% 1,013 1.5% 153.2% 11,676 14.7%
Net Income 1,913 2.6% (1,933) -2.9% - 8,757 11.0%
  Basic EPS (1)(2) 0.19   (0.19)     0.88  
EBITDA(3) 10,684 14.5% 9,752 14.7% 9.6% 19,228 24.2%
 
Notes:
1. Basic EPS = Net Income-Parent / Weighted Average of Outstanding Common Shares
2. Capital Stock (common): NT$99.5 billion as of September 30, 2018
3. EBITDA = Operation Income + Depreciation & Amortization
4. All figures are unaudited, prepared by INX in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).

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