Taipei: Shares of Taiwan-based flat panel maker Innolux Corp. saw a significant increase on Tuesday, following a report of improved profitability in the first quarter, according to market dealers.
According to Focus Taiwan, Innolux shares rose by 10 percent, reaching NT$35.50 (US$1.13) by 12:22 p.m., marking the maximum daily increase and outpacing the Taiex, the Taiwan Stock Exchange’s benchmark index, which was up by 0.72 percent at 42,091.64. The stock initially opened up by 2.40 percent, with buying momentum accelerating post-10 a.m., driven by investor enthusiasm over the company’s Q1 financial results.
Innolux reported a net profit of NT$1.79 billion for the January-March period, marking a substantial turnaround from a modest NT$66 million profit in Q4 2025. Earnings per share stood at NT$0.2. The company’s consolidated sales for the quarter amounted to NT$66.6 billion, a 19.17 percent year-on-year increase.
The rise in revenue was attributed to clients building up inventories in anticipation of global sports events such as the FIFA World Cup 2026. Additionally, concerns over a potential spike in memory chip prices due to supply shortages also fueled demand for panels, Innolux noted.
The company’s operating profit for the first quarter was NT$1.5 billion, a stark contrast to a NT$1.17 billion loss in the previous quarter. Depreciation and amortization costs were slightly higher at NT$7.9 billion, up from NT$7.6 billion in Q4 2025.
Innolux disclosed that display components accounted for 56 percent of total sales in the first quarter, with non-display products making up the remaining 44 percent. Looking forward, the company anticipates a low single-digit growth in consumer display sales and a similar decline in commercial display sales sequentially. Revenue from non-display products is expected to remain relatively stable in the second quarter.
Prior to Tuesday’s surge, Innolux shares had been on an upward trend, fueled by media reports of the company’s successful diversification of its product portfolio. This included securing orders for advanced fan-out panel-level packaging (FOPLP) services for chips in the SpaceX supply chain.
The buying interest in Innolux also positively impacted its competitor AUO Corp., whose shares climbed 7.43 percent to NT$20.25 by 12:22 a.m.