AU Optronics Corp (AUO, 友達光電) reported yesterday that sales rose 0.6 percent last month from a year earlier to NT$16 billion (US$498 million).
The figure compared to NT$15.4 billion in May, the world's third-largest maker of liquid-crystal-display (LCD) panels after Samsung and LG Philips of South Korea said in a filing to the Taiwan Stock Exchange.
Advice
Investors are advised to buy shares of AU Optronics, Yuanta Core Pacific Securities (
The company's shares closed down 2.03 percent at NT$53.20 yesterday.
"AUO delivered strong sequential shipment growth of 15 percent in the second quarter of this year, beating its previous guidance and market expectations of 10 percent," Yuanta Core Pacific analyst Eric Lin (
"Aided by rebounding panel prices, increased utilization rates and ongoing cost reductions, we now forecast AUO will post stronger than expected profits of NT$604 million in the second quarter," Lin said.
Looking ahead, the flat-panel giant is expected to create net earnings of NT$1.1 billion, or NT$0.20 a share, in the third quarter, which suggests the net loss of NT$2.1 billion in the first quarter of this year would officially represent the bottom of this downcycle, the report said.
Upward trend
AU Optronics reported a net profit last year of NT$27.96 billion (US$879 million), compared to a forecast of NT$29.15 billion made earlier in the year.
The company's gross margin is expected to continue its upward trend to 10.6 percent in the current quarter from 9.7 percent in the second, in light of easing overcapacity pressure due to robust demand for LCD TVs and LCD monitors, the report said.
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