About Mini LED, VCSEL crystal electric business, 2018 operating steady spell

Taiwan LED chip maker crystal electric in January this year, affected by factors such as depreciation and LED industry off-season, monthly revenue minus 8.59% months, but because the Lunar New Year is still up 11.52% point gap. By the new capacity this year, opened, blue LED price pressure increased, however, in the Mini / LED backlight display application and VCSEL supply capacity enhancement, the company this year have the opportunity to fight the steady operation.

Mini LED is one of the products of crystal electric this year is more optimistic about the business. The company said the main reason is the Mini LED size between 100-200 m, even a little larger, with existing production equipment can be slightly modified production. Although the product size, style, and so on the current drive or with general LED, Lei chip so need different characteristics, but basically can be solved for the company. Expected the second half of this year will be the fastest production supply backlight customers, ultra small pitch screen at the same time using Mini LED also have the opportunity to be introduced in the second half of the year.

VCSEL (vertical cavity surface emission light device) is crystal electric this year will be to the development of new products. In fact, EPISTAR VCSEL products have been supplied to the production data center customers, but the company continued to develop mobile phone sensing applications. Outside the crystal electric may be in the second quarter of this year the production of 6 inch VCSEL wafer mobile phone to the wisdom of the supply chain, the second half may also supply chip processing to Android customers. Corporate estimates this year VCSEL revenue contribution of 3% next year, 10% challenges. Because the VCSEL product profit is better than LED, profit contribution will be higher than the revenue contribution plan.

Despite the continued expansion of production capacity, may add variables for the next few years LED industry boom, according to the prediction of research institutions, from 2018 to 2020, the annual production capacity of LED growth may reach above 5%. However, the outside world for crystal electric trading this year is still slightly positive evaluation.

On the one hand, is the impact of LED on the supply of new capacity may be the second half will be more significant, but the third quarter of the peak season demand may increase the supply pressure of moderate offset. On the other hand is crystal itself in the development of new technologies, new products, including VCSEL, Mini, LED, and even in the development of Micro LED is expected to bring new energy and new opportunities.

Micro LED and Mini LED from the main size distinction, 100 m called Micro LED Mini LED, a size of 100-200 m, even a little, with existing production equipment can be slightly modified production. Micro LED Mini LED, but regardless of size are much smaller than the general LED, different driving modes, different current. Mini LED is expected this year will be into production, but the Micro LED distance production still needs some time.

Although the mass spec LED prices continued downward, but last year, crystal electric actively adjust the product portfolio, including four yuan LED and CSP chip scale package LED product shipments are growing, driven by last year's gross profit margin increased significantly. Is expected this year LED average decline may still have 10%-15%, but from the crystal electric product portfolio optimization, the investment should help slow decline pressure.

Crystal 2017 revenue of about 25 billion 370 million yuan (NT, the same below), the annual reduction of 0.66%, due to product mix adjustment, gross margin, the three quarter gross margin of about 21.6%, the annual increase of nearly 18 percentage points, the first three quarters of earnings per share 1.18 yuan. In the fourth quarter revenues fell to 6 billion 37 million yuan, an annual reduction of 4.69% quarter by 13.24%. The annual profit is likely to remain for nearly 3 years the best results. In January this year, revenues affected off-season reduced to 1 billion 876 million yuan, but the annual increase of 11.5%. The February forecast lower rebound after March.

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