Innolux shares soar on improving bottom line in Q1

Taipei, May 12 (CNA) Shares of Taiwan-based leading flat panel maker Innolux Corp. moved sharply higher Tuesday after the company reported a day earlier on the back of its improving profitability in the first quarter, dealers said.

As of 12:22 p.m., Innolux shares had jumped 10 percent, the maximum daily increase, to NT$35.50 (US$1.13), outperforming the Taiex, the Taiwan Stock Exchange's benchmark index, which was up 0.72 percent at 42,091.64.

The stock opened up 2.40 percent and buying continued and accelerated after 10 a.m. to push up its shares to the 10 percent ceiling as investors were impressed by the company's first quarter financial results, dealers said.

Innolux said it posted a net profit of NT$1.79 billion in the January-March period, swinging to profitability after NT$66 million in net profit in the fourth quarter of 2025, with earnings per share at NT$0.2.

In the three-month period, Innolux had consolidated sales of NT$66.6 billion, up 19.17 percent from a year earlier.

The flat panel maker said revenue in the first quarter increased as its clients rushed to build up their inventories ahead of upcoming global sports events, including the FIFA World Cup 2026.

Stronger client purchases also reflected their concerns that a spike in memory chip prices would continue due a supply shortage, making panels more expensive, the company said.

First quarter operating profit totaled NT$1.5 billion, compared with a loss of NT$1.17 billion in the previous quarter, with depreciation and amortization at NT$7.9 billion, compared with NT$7.6 billion a quarter earlier, Innolux said.

According to Innolux, display components made up 56 percent of its total sales in the quarter, while non-display took the remaining 44 percent.

Looking ahead, Innolux said consumer display sales are expected to grow at a low single-digit pace sequentially, while commercial display sales are likely to fall at a low single-digit pace.

In addition, revenue of its non-display products is estimated to stay little changed in the second quarter.

Before Tuesday, Innolux shares had surged in recent sessions as buying was sparked by media reports that the company, which has been keen to diversify its product portfolio, secured orders for its advanced fan-out panel-level packaging (FOPLP) services for chips in the SpaceX supply chain, dealers said.

Buying in Innolux spread to its rival AUO Corp. shares of which had risen 7.43 percent to NT$20.25 as of 12:22 a.m.