Chimei Innolux Rises on Narrower Loss, Forecast: Taipei Mover
Stock Chart for Innolux Corp (3481)
Taiwan’s largest maker of liquid-crystal displays added 7 percent to NT$9.19 as of 10:14 a.m. local time, headed for its biggest gain since March 28. The benchmark Taiex (TWSE) index rose 0.5 percent.
Chimei Innolux yesterday said its second-quarter net loss dropped to NT$9.57 billion ($320 million), narrower than the than NT$13.4 billion loss a year earlier and the NT$9.8 billion average of analyst estimates. Shipments will improve this quarter while the manufacturer aims to boost profitability by reducing spending and focusing on its main businesses, it said.
“We expect Q3 gross margin to trend towards break-even level due to higher utilization rates and seasonality effects,” Alberto Moel, an analyst at Sanford C. Bernstein who rates the stock outperform, wrote in a report. “We view CMI’s strategic plan of trimming down its lamination business and strengthening its core operation as positive in pursuit of returning to profitability in the mid-term.”
To contact the reporter on this story: Tim Culpan in Taipei at firstname.lastname@example.org;
Adela Lin in Taipei at email@example.com
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