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Innolux shares soar on Q4 results

Innolux shares soar on Q4 results

Taipei, Feb. 11 (CNA) Shares of Innolux Corp. (??) rose sharply Wednesday morning after the flat panel maker reported a more than 50 percent sequential increase in net profit in the fourth quarter of 2014 on strong demand for large-sized screens, dealers said. Investors were buying the stock amid optimism that Innolux's shipments will be bolstered by Chinese buyers building up inventories for the May 1 Labor Day shopping season in China, they said. As of 12:02 p.m., shares of Innolux had added 7 percent, the maximum daily increase, to NT$16.65 (US$0.53), with 158.70 million shares changing hands. The weighted index on the Taiwan Stock Exchange was up 0.86 percent at 9,474.67. Innolux shares attracted strong interest soon after the market opened, and buying accelerated to push the stock to its daily upward ceiling as investors welcomed the company's fourth quarter earnings report, dealers said. At an investor conference held Tuesday, Innolux announced that it posted a net profit of NT$11.15 billion in the October-December quarter, up 51.6 percent from a quarter earlier, on consolidated sales of NT$114.95 billion. Innolux's earnings per share (EPS) for the fourth quarter rose to NT$1.13, from NT$0.77 in the third quarter. In the October-December period, Innolux's gross margin stood at 16.1 percent, improving from 12.8 percent seen a quarter earlier, and its operating margin rose to 10.2 percent from 8.0 percent recorded in the previous quarter. Due to its efforts to improve its product portfolio, Innolux's shipments of TV panels in the fourth quarter accounted for 51 percent of its total sales, up from 50 percent in the third quarter and up from 46 percent in the same period of the previous year. Innolux said the global flat screen business was strong in 2014 because of supply shortages, and its results reflected that strength. It posted a net profit of NT$21.68 billion for the year as a whole, up sharply from NT$5.10 billion seen a year earlier. Its 2014 EPS rose to NT$2.31, from NT$0.57 in 2013. While Innolux felt the supply shortages would ease to some extent in 2015, it said demand should remain solid and keep the sector's momentum going. The flat panel supplier said it expected to see sales growth pick up again in the second quarter after the traditionally sluggish first quarter. Analysts said the upcoming Labor Day holiday shopping season in China could boost shipments, in particular TV panel sales. (By Pan Chi-i and Frances Huang)


Updated : 2021-09-27 01:01 GMT+08:00