Hannstar Display profit almost doubles

By Lisa Wang  /  Staff reporter

Wed, Jul 17, 2013 - Page 13

HannStar Display Corp (瀚宇彩晶) almost doubled its net profit last quarter from the first quarter, thanks to robust end demand for smartphones and tablets, the company said in a statement yesterday.

Second-quarter net profit grew to NT$2.55 billion (US$85 million) from NT$1.32 billion in the first quarter, marking the company’s third straight profitable quarter, the company said.

In the first half, HannStar’s net profits totaled NT$3.86 billion.

HannStar is the first Taiwanese LCD panel maker to return to the black since the final quarter of last year after a prolonged industrial slump. The company’s new strategy of shifting capacity to mobile devices from PC and TV making has proven workable.

Innolux Corp (群創光電), the nation’s biggest LCD panel maker, returned to profit in the first quarter after five years in the red, while AU Optronics Corp (友達光電) is expected to post a first-quarter profit.

By unit, shipments of panels for smartphones and tablets dropped 22 percent to 85.05 million units last quarter from 108.39 million units in the first quarter, because rising demand for larger smartphone screens reduced unit shipments.

Revenue expanded 21 percent last quarter to NT$9.18 billion, compared with NT$7.57 billion in the first quarter.

HannStar shares have quadrupled to NT$13.5 from NT$3.35 since the beginning of this year.