TPV Technology, the world's largest contract producer of computer monitors, is aiming to produce 18 million liquid crystal display (LCD) televisions this year as demand for smart TV and high-definition large-sized TVs improves.
The company reported a year-on-year drop of 7 per cent in net profit last year to US$111.9 million due to weak demand for monitors, while revenue rose by 8.5 per cent to US$12 billion during the period mainly because of the consolidation of TP Vision into the company last April.
Shipments of LCD televisions rose to 15.1 million units in 2012, up 12.7 per cent from the previous year. TP Vision, a joint venture TPV formed with Royal Philips Electronics in April last year, contributed 5.8 million units.
Last year was not good for the television market, the company said. Market research firm DisplaySearch found that global LCD television shipments declined for the first time in 2012, down 1 per cent to 203 million.
TPV's chairman and chief executive, Jason Hsuan, said he expected smart TVs to become the focal point of the market this year. "The burgeoning demand for connectivity is making smart TV increasingly popular among consumers," Hsuan said.
In 2012 the average selling price of the company's televisions was US$353.20, up from US$292.60 the previous year.
Shane Tyau, TPV's chief financial officer, said TP Vision was expected to contribute to the profitability of TPV in 2014. "That's our expectation and we still have a lot to do," he said.
Tyau said TPV would be put under pressure by inventory adjustment in the first quarter but improvements to margins from the second quarter could be expected, as the company will launch new products starting from this month.
Monitor shipments fell 6.3 per cent last year to 56.2 million units, due to "weakening momentum of the monitor market", the company said. The popularity of mobile computing devices was cannibalising personal computer demand, and affecting the sales of monitors, it said.
The segment's revenue fell 5.7 per cent to US$5.7 billion, from US$6.1 billion in 2011. Monitors accounted for 47.9 per cent of the company's total revenue, while the television business accounted for 41.8 per cent.
Shares in TPV fell 2 per cent yesterday to HK$2.44.