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LG Display 4Q16 results +1
The only interesting part of the LGD conference
call was the final question, on the Crystal integrated sound
system. It sounds like LG Display does not have a lock on this
technology from a patent perspective, but since it has to be
manufactured into the panel, it will enjoy exclusive premium
pricing anyway until production competition arrives, probably from
China in 2019.
The rest of the call pretty much just confirmed known trends:
- 70% OLED CapEx as opposed to 50% last year
- 30% of panels 65" and above for 2016, rising to 40% in 2017
LG Display has announced financial results for the fourth quarter:
- net income amounted to 99 cents per ADR, beating by 50 cents
- on revenue of $6.82b, which beats by $320M
- at the current exchange rate, a dividend of 86 cents per ADR should be approved in March and paid in April.
all calculations were done using 1163.47 won/USD
These are good results across the board, but that was very much expected given the state of the market. Panels for TVs did particularly well and accounted for 38% of the revenue in the fourth quarter of 2016, mobile devices for 31%, tablets and notebook PCs for 17%, and desktop monitors for 14%. Prices should continue to climb, but LGD's output will drop slightly due to line transitions and R&D. I don't see anything unusual in the quarterly presentation and will leave it at that for this evening.