LG Display is expected to return to profitability for the first time in six quarters, but is the effect temporary? = South Korea

According to financial information service FN Guide, the operating profit of major panel manufacturer LG Display (LGD) for the October-December period of 2023 is estimated to be 89.1 billion won (approximately 9.7 billion yen).
. If this turns out to be true, it will be the first time in six quarters that the company has turned a profit since the April-June period of 2022, when it had been incurring operating losses.
With shipments of organic EL (OLED) panels to Apple in the US expected to increase, a return to profitability is expected.
Seen as powerful. LGD supplies OLED panels for devices such as the iPhone 15 Pro. Kiumu Securities will sell LG Display's panels for Apple in the October-December period of 2023.
It is estimated that the number of units shipped increased by 311% compared to the July-September period. However, the effect of returning to surplus is expected to be temporary. In the January-March period of 2024, the company earned 329.2 billion won (approx.
This is because it is estimated that the company will incur an operating loss of 35,862,760,000 yen). The proportion of the liquid crystal display (LCD) business in the company's sales is still not small, but it is declining due to the proliferation of Chinese manufacturers.
Amid price competition, LCD prices, which had been on a recovery trend, have fallen again. LGD aims to return to profitability by withdrawing from the LCD business and accelerating investment in OLED for IT use.
The intention is to bring the timing forward. An industry official predicted, ``The sales of OLED-equipped iPads scheduled for 2024 will be the starting point for LGD's performance recovery.''