AUO's Q1 net profit after tax more than doubled quarterly, and Q2 performance should be viewed with caution

AUO's business turned profitable in the first quarter of this year. Coupled with the infusion of non-operating income from the sale of factories, the net profit after tax reached 3.29 billion yuan, a quarterly increase of 103%. EPS was 0.43 yuan, an increase from 0.21 yuan in the previous quarter and -0.46 yuan in the same period last year.

Chairman Peng Shuanglang said that AUO's acquisition of BHTC now has factories in Mexico, India and other parts of the world, and can flexibly adjust production line operations. The outlook for the second quarter has become conservative. AUO will evaluate the most appropriate production method with its supply chain partners. The possibility of setting up factories in the United States for back-end module and finished product assembly will not be considered, but the front-end will not be considered.

Peng Shuanglang said that AUO continues to diversify the market and expand product applications, and continues to develop different markets such as Southeast Asia and Europe. In the face of high market uncertainty, AUO will carefully prepare materials, avoid sluggish inventory, and strictly control capital expenditures and expenses. AUO's capital expenditure will be controlled within 30 billion this year. As operations transform into a capital-light model, capital expenditure will decrease year by year.