Bewildering prospect of the Asian manufacturing liquid crystal display

Out better prospects for the Asian panel makers expected, investors have been buying shares in the industry. However, they failed to grasp the overall situation. With the TV and AD9300KP datasheet and computer

manufacturers have to increase inventory panel, liquid crystal display (LCD) production to rise significantly. CLSA Asia-Pacific Markets (CLSA Asia-Pacific Markets) said it expects the third quarter of this year, LCD factory operating rate will reach 92%, much higher than 68% in the first quarter.

Shortages of key raw materials such as glass, push panel prices have been rising. Barclays Capital said the 32-inch panel prices so far this year has risen by 15%.

Some investors expected panel prices and AD9300KP price and productivity will create more profits panel makers, and AD9300KP suppliers and accordingly buy such shares. Sharp (Sharp), LG Display and CMO (Chi Mei Optoelectronics) and other global manufacturers of several of the largest panel this year, the average price rose to 60%.

However, the panel industry outlook is not favorable factors such as clear display.

Sales of TV sets and computers are still in the doldrums, TV and computer manufacturers on the LCD manufacturing industry rebuild inventories to help is limited. Once, as CLSA expected, TV and panel manufacturers warehouse in the third quarter to full warehouse state, then the panel demand will again decline.

In addition, the panel makers is increasing production capacity. One concern is

, Sharps, a panel plant planned to start in October this year. Therefore, the panel prices may be temporary.

At the same time, with increased awareness of consumers to reduce the cost of large-size LCD TVs to buy, sell the balance is gradually less backward profit margins of small-size LCD TV end.

Taking these various factors, the market about the prospects for the panel industry is also expected a larger difference. Among them, the Sharps new LCD products is expected to help reduce costs, therefore, the current financial year the company expects to achieve operating profit 500 million U.S. dollars, while the LCD will contribute one third of the profits. At the same time, analysts on average expected operating loss of approximately 7,000 Sharp million.

And Barclays (Barclays) and other agencies have noted a number of industries outside the panel industry profit margins are shrinking. Barclays is expected to Sharp losses this fiscal year will be nearly 3 billion U.S. dollars.

View of this, prospects did not look like the panel industry, as optimistic investors expected.