In the evening of July 31, Beijing time, Sharp released its financial results for the first quarter of the fiscal year ended June. Driven by display panels, camera modules and sensors, Sharp's operating profit rose 45% in the first quarter from a year earlier, exceeding analysts'expectations.
Sharp's operating profit for the first quarter ended June was 24.8 billion yen ($223 million), up from 17.11 billion yen a year earlier. By comparison, the average of 7 analysts surveyed by Thomson Reuters is 18 billion 800 million yen.
The increase in operating profit is mainly due to the strong performance of display panels, camera modules and sensors. Among them, the operating profit of display panel business was 105 billion yen, an increase of 55.6% over the same period last year. In addition, the revenue of electronic equipment business reached 111 billion 200 million yen, an increase of 33.6% over the same period last year.
Sharp's strong profit growth contrasts sharply with LG Display's sluggish performance as Apple's display panel supplier. In the second quarter of this year, LG Display revenue fell 15% to 5 trillion and 600 billion won (US $4 billion 969 million 700 thousand). The operating loss was 228 billion won (about 202 million 100 thousand US dollars), which is the company's two consecutive quarterly loss.
Nevertheless, investors remain wary of Sharp's long-term prospects, as it faces strong challenges from its Asian rivals. Samsung and LG Display are already ahead in the market while smartphones are shifting to OLED screens, while SHARP and Japan Display are still struggling to catch up. (Li Ming)
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