2011 LED market demand continued strong

According to Taiwan media reports, the day before, Deutsche securities held led enterprises, invited crystal power, canyuan, Taigu, Lite, Zhi Mao Taiwan manufacturers to participate, at Deutsche securities and exchange of the participating vendors that LED industry this year in the LED TV and tablet computer backlight demand driven by the trend optimistic. Reiterate buy crystal electric rating.

Deutsche Securities pointed out that the strong demand for LED TV and tablet computer industry to drive the overall opportunity this year, more than LED plant performance in March to benefit from the LED backlight demand, are significantly higher than in February growth, including EPISTAR, canyuan, Taigu 3 grain factory all begin in March to South Korea's first generation factory, in addition LED, factory believes that continuous improvement in technology, will be earlier than previously estimated time of take-off LED lighting needs, crystal electric lighting accounts for the proportion of overall revenue forecast this year from 20% last year, up to 25% to 30% level, canyuan will also increase the proportion of lighting to 30%, Taigu target of 25%.

Deutsche Securities believes that the recent share price reflects the LED of the fourth quarter of last year and this year, in February 1 earnings of poor performance of negative factors, however, after March, the grain factory has felt from the grain demand driven LED strong force, and the effectiveness of Taiwan LED factory in technology and cost, performance, it also has resistance from the panel plant vertical integration competitive threat.

Deutsche Securities pointed out that the second quarter average price of products will be relatively flat grain, and sapphire substrate prices will gradually decline in the second quarter, plus the product mix and production yield improvement, grain factory will improve gross margins in the second quarter after.