Core Operations Turn to Loss in Q3, Loss Per Share of 0.33元
Panel maker AUO (2409) held an earnings call on 29日 and released its third-quarter results, which came in below expectations. Third-quarter consolidated revenue was 668.8億元, down 5.7% quarter-on-quarter. On profitability, gross margin fell from 13% in the second quarter to 10.1%, down 2.9 percentage points. Net loss attributable to the parent company was 25億元, with a quarterly loss per share of 0.33元, as core operations turned to a loss again, indicating increased operating pressure.
Weak Consumer Electronics, Display Technology Revenue Down 11% Quarter-on-Quarter
AUO said the third-quarter loss was mainly due to its display technology business being hit by weak consumer electronics demand, with quarterly revenue down 11% quarter-on-quarter. Although automotive and medical-related businesses remained stable, they could not offset the gap caused by declining traditional panel demand. With no clear improvement in product mix and demand structure, the smaller revenue scale further weighed on gross margin and profitability, pushing third-quarter results into a loss.
Conservative Q4 Outlook, Pull-in Momentum Under Pressure
Looking ahead to the fourth quarter, AUO noted that year-end peak-season stocking has ended and customers have become more cautious in placing orders. In addition, rising prices for components such as memory have put cost pressure on end-brand makers, leading them to cut purchase volumes and control inventories, curbing panel pull-in momentum. With no recovery in end demand and customers continuing to adjust inventories, the market is watching whether the fourth quarter will see a weak peak season, with subsequent traditional panel prices and shipment changes as key points to watch.
Transformation Direction Praised, Benefits Still Need Time to Materialize
Investor Li Shangyou said in a Facebook post that AUO's recent transformation toward automotive, Micro LED and advanced packaging is the right direction, but it will still take time for the new businesses to show up in earnings. The market had already priced in expectations in advance, and with the share price correcting and results missing expectations, funds that entered at highs may face stop-loss pressure. He stressed that there is no need to dismiss the company's long-term development because of a single weak quarter, but when earnings growth fails to keep up, the market may reassess its valuation.
Stock Fell 4.2% After Volatility, Market Focuses on Digesting Bearish News
AUO's stock moved lower with volatility today, rising to 36.65元 in early trading before selling pressure emerged, falling to a low of 33.85元 and closing down about 4.2% at 34.05元, with foreign investors selling a net 50436張. Li Shangyou analyzed that when the stock rises the market is generally optimistic, even with chasing sentiment, but once it enters a correction compounded by weaker-than-expected results, confidence can easily turn to panic. Especially for investors expecting the stock to return above 40元, facing the pullback and weak fourth-quarter outlook, whether tomorrow's open marks capitulation or further stop-loss exits will be the key focus. Just as UMC's earnings call was not bad, yet its stock still closed limit-down at 115.5元 today, market reactions are hard to predict.