Taiwan's Panel Makers, Tatung and Chimei Invenio Post Weaker Shipments, Revenue Falls Over 10%

Pegatron and Chimei InnoLux, the two leading panel manufacturers in Taiwan, have been experiencing sluggish shipments in recent months. According to Pegatron's financial report, the company's consolidated revenue for July was NT$20.37 billion, a drop of 18.4% from the previous month's NT$22.88 billion and 2.6% from the same period last year's NT$21.09 billion. Chimei InnoLux also showed signs of weakness, with a July consolidated revenue of NT$18.9 billion, a 13% drop from the previous month and 1.9% from the same period last year.

However, industry insiders note that July is a relatively low point for television panel shipments. The fourth quarter is typically the peak period for television panel shipments, while the third quarter is a relatively low point. This suggests that the sluggish shipments may be seasonal, and revenue may improve in the coming months.

Pegatron and Chimei InnoLux are actively transforming themselves to become more integrated manufacturers of display panels and components. This strategy involves reducing the proportion of revenue from pure panel sales and increasing it from display and component sales. While this transformation may lead to short-term sluggish shipments, it may ultimately bring about more competitiveness and market share for the two companies.

Pegatron's transformation strategy is more visible. The company rolled out its own display and component products last year and has been actively promoting them. According to Pegatron's financial report, the proportion of revenue from display and component sales in July increased compared to the same period last year. This suggests that Pegatron's transformation strategy is starting to yield results.

Chimei InnoLux's transformation strategy is more conservative. The company has been observing the trends in display and component markets and has launched its own products at opportune times. However, according to Chimei InnoLux's financial report, the proportion of revenue from display and component sales in July remains relatively low. This suggests that Chimei InnoLux's transformation strategy may require more time and effort to bear fruit.

The sluggish shipments may have an impact on the stock prices and competitiveness of Pegatron and Chimei InnoLux. However, this may also mean that the two companies have the opportunity to improve their competitiveness and market share in the coming months.

In addition, the sluggish shipments may have a ripple effect on the entire panel industry. Industry insiders predict that the industry's competitiveness and market share will face greater challenges in the coming years. This means that Pegatron and Chimei InnoLux need to continue actively transforming themselves and investing in R&D to maintain their competitiveness and market share.

In summary, the sluggish shipments of Pegatron and Chimei InnoLux may be due to seasonal factors or the companies' active transformation strategies. However, this also means that the two companies have the opportunity to improve their competitiveness and market share in the coming months.