Industry news

TFT-LCD panel maker HannStar Display is expected to see business operations for the third quarter of 2016 swing to profitability from net losses for five consecutive quarters, according to industry sources.

HannStar Display suffered net loss of NT$1.624 billion (US$51.0 million) and net loss per share of NT$0.50 for the first half of 2016. The company, however, had third-quarter consolidated revenues of NT$6.961 billion hiking 73.03% on quarter and 74.39% on year mainly due to hikes in price of panels used in entry-level and mid-range smartphones and feature phones as well as a large increase in shipments of own-brand LCD monitors, the sources said.

As many makers have stopped or decreased production of WVGA and FWVGA panels used in entry-level and mid-range smartphones and feature phones, HannStar Display and China-based Century Technology (Shenzhen) and InfoVision Optoelectronics (Kunshan) have become the major producers of such panels, the sources indicated. Decreased supply of such panels has resulted in price hikes, the sources noted.

HannStar Display has focused on governments' and enterprises' procurement for its own-brand LCD monitors in the Europe market particularly, the sources said. Since HannStar has LCD module makers in southern China undertake OEM production of own-brand LCD monitors and quickly ships products directly to clients, instead of having to go through sales agents, the company has scored points in the Europe market, the sources indicated.

Currently, HannStar has over 60% of consolidated revenues coming from handset panels, 30% from industrial, automotive and tablet panels, and 10% from large-size panels and own-brand LCD monitors.