Asian LCD makers who have bet big on flat screen TVs are starting to see returns as the booming sector matures, but only a handful of companies with strong brand clients or exposure to the most advanced TV panels will see a significant profit boost.
Well-planned investments and better inventory management are helping to stabilize liquid crystal display (LCD) makers, whose stocks and profits have gyrated in past cycles that saw supplies swing from too much to too little every two years.
The biggest manufacturers are likely to stand out in a new crystal cycle that shows signs of evolving into a shorter, more stable pattern as flat-screen televisions gain popularity with more affordable prices.
Companies tipped to succeed in this new climate include South Korea's LG, Philips LCD, AU Optronics, and Chi Mei Optoelectronics of Taiwan, which sell panels to top TV brands such as Sony.
"I'd say LG, Philips, AU and Chi Mei have chances to win in this new game and, for long-term investors, they are worthwhile investments," said Robyn Hsu, a fund manager at Taiwan's Truswell Securities Investment Trust.
Story source:
reuters.com.
