LG Display expects to reduce losses in the second quarter and turn profitable in the second half of the year

Korea media reported on July 15 that according to statistics from a number of Korean market research institutions, LG Display is expected to achieve sales of 6.4237 trillion won and operating losses of 2985 trillion won in the second quarter of this year.Year over last year, sales increased by 35% and operating losses narrowed by 66%.At the same time, Korean media believe that LG Display can turn losses into profits in the third quarter and turn losses overall in the second half of the year.Securities Company to LG The consensus forecast for Display's third-quarter sales is 7,280.4 billion won and operating profit of 50.5 billion won. Sales in the fourth quarter are expected to further increase to 8,060.1 billion won, with a surplus of 363.6 billion won. rgba(0, 0, 0, 0.9); font-family: system-ui, -apple-system, BlinkMacSystemFont, "Helvetica Neue", "PingFang SC", "Hiragino Sans GB", "Microsoft YaHei UI", "Microsoft YaHei", Arial, sans-serif; font-size: 17px; letter-spacing: 0.544px; text-align: justify; line-height: 1.75em; box-sizing: border-box !important; overflow-wrap: break-word !important;'>Compared with H2 in 2023, LG Display sales increased by 3.1595 trillion won from 12.181 trillion won, and profits turned from an operating loss of 53 billion won to a surplus, and increased by more than 400 billion won.Korean media stated that LG DisplayThe performance rebound is the result of its business structure shifting to OLED. According to the company's 2024 sustainability report, OLED's share of total sales increased from 32% in 2021 to 40% in 2022, and increased last year to 48% in 2023. As the performance of the small and medium-sized OLED field, which is a shortcoming, improves, the proportion is expected to increase to more than 50% this year.It is understood that LG Display has begun mass production of 11-inch and 13-inch iPad Pro displays. This solidifies LG Display's position as the second largest supplier after Samsung Display.At the same time, LG Display's AP4 factory production capacity has also expanded from 30,000 pieces to 45,000 pieces per month to cope with Apple iPhone 16 OLED orders. 0.9); font-family: system-ui, -apple-system, BlinkMacSystemFont, "Helvetica Neue", "PingFang SC", "Hiragino Sans GB", "Microsoft YaHei UI", "Microsoft YaHei", Arial, sans-serif; font-size: 17px; letter-spacing: 0.544px; text-align: justify; line-height: 1.75em; box-sizing: border-box !important; overflow-wrap: break-word !important;'> In terms of shipments, KB Securities researcher Kim Dong-won said: Large-size OLED panel shipments in the second quarter are expected to increase by 54% year-on-year to 1.62 million pieces, while small and medium-sized OLED panel shipments in the second quarter are also expected to increase by 54% year-on-year. "An increase of 51% over the previous year, reaching 12 million units.Overall, LG Display is gradually reducing the proportion of businesses that are sensitive to supply and demand fluctuations, such as LCD TVs, and focusing on high value-added areas to build a stable and high-profit operating system.To this end, the company is also looking to sell its LCD display production plant in Guangzhou, China. The factory produces large LCD displays for televisions, and it is understood that local display manufacturers such as BOE and China Star Optoelectronics have also joined the acquisition war. The market expects the selling price to exceed 1 trillion won.