BOE’s half-year profit to exceed RMB 1.8bln

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BOE’s half-year profit to exceed RMB 1.8bln
Publish time:2015-07-21

BOE Technology Group Co., Ltd. (BOE) (BOE A Share: 000725; BOE B Share: 200725), one of the world’s leading providers of semiconductor display products and solutions, released the performance forecast for the first half of 2015 on July 14. Net profits attributable to shareholders are expected to be in the range RMB 1.85~1.9 billion, up 78% ~ 82% year on year.

In the first half of 2015, the global panel industry showed a downward trend. Though the robust market demand of last year continued in the first quarter, market demand in the second quarter was sluggish due to such factors as the global economic fluctuations and the slack season of the industry. According to IHS DisplaySearch, the global shipments of panels in the first quarter of 2015 increased 3.1% year on year, while shipments in the second quarter are expected to decline 1.4%, showing a downward trend. Shipments of IT products including tablets may fall 20% year on year.

In face of the declining market demand, BOE has accelerated product innovations and steadily increased the proportion of high-value-added products; flexibly adjusted the structure of production lines, and met the diverse needs of customers by providing diversified products in different sizes; and deepened cooperation with strategic customers at home and abroad such as Samsung, LG and Skyworth to strengthen the resistance against market fluctuations. Thanks to such efforts, BOE delivered a remarkable performance and saw a continued increase in shipments in the first six months of 2015. Specifically, the shipments of mobile phone panels rose 38% year on year, seizing a market share of 19%. The shipments of panels for tablets grew 37%, with a market share of 32%, both ranking first in the world. The shipments of TV panels surged 154%, driven by the explosive growth in the shipments of UHD panels, allowing BOE to move into the fourth place in the global TV panel industry with a market share of 11%.

According to IHS DisplaySearch, in the second half of 2015, the global shipments of panels are expected to increase 5% from the first half of 2015, of which the shipments of tablet panels will grow 20% and shipments of displays 10%. With the busy seasons of China’s National Day holiday, New Year’s Day and Spring Festival and the foreign Thanksgiving and Christmas holidays, the global panel demand will be on a steady rise in the second half of 2015.