Corning: Barclays Sees Boost From China TV Subsidies

The LCD flat-panel sector is seeing some strengthening in demand from a new program by the Chinese government to subsidize the purchase of TVs and other appliances by rural residents of the country, Barclays Capital analyst C.J. Muse notes in a research note. According to the English language Web version of The People’s Daily , “A subsidy of 13% of the purchase price will be granted to rural residents buying motorcycles and home appliances such as color TV sets, refrigerators, washing machines, cell phones, computers, water heaters and air-conditioners, for which 20 billion yuan has been set aside.” The 20 billion yuan subsidy is equal to about $2.9 billion. Muse today notes that flat-panel players LG Display (LPL) , AU Optronics (AUO) and Chi Mei Optoelectronics are the biggest beneficiaries of a pick up in demand. But he also sees benefits for Corning (GLW) , and today upped his estimates on the LCD glass maker. For 2009, he goes to 58 cents, from 50 cents; for ... (link)