Accumulated Q1 loss impact profits, annual revenue increased by 10-12%

The accumulation of the first quarter of 2017 is the most traditional business off-season, but shipments continued to rise, driven by revenue by more than 10% years, but the legal analysis, because the proportion of total revenue of RMB is high, and in the first quarter of the corporate forecast depreciation rate, and will affect the quarter gross margin fell to about 30-31%, industry foreign exchange loss estimated up to 10 million yuan (NT, the same below), about 0.3 yuan EPS. This year the company benefit from the mainland market is still strong on small pitch LED display market demand, annual growth rate of 45-50%, the company estimated this year shipments can increase more than 20%, because the product price by the market price competition effect, the large decline in estimated revenue this year, the annual increase of approximately 10-12%.

Accumulate for the IC design company, the product is mainly LED driver IC, the application side to display based, other applications include architectural lighting, TV backlight and general lighting. Terminal applications accounted for the proportion of revenue: display accounted for about 90%, LED lighting accounted for about 10%. From 2014 to focus on ultra dense display screen, small spacing (pitch (spacing) <3mm) products, the current niche products (including small space accounted for 6-7), accounting for about 70% of the proportion of consolidated revenue. The company shipped mainly to the mainland market, accounting for 75% of revenue.

Accumulation continued to benefit from the mainland market, the demand for small distance display screen upgrade, shipments rose, driven by the first quarter, although the traditional operation of the most off-season, but revenue reached 610 million yuan, 0.42% quarter, an increase of 13.33%. However, due to the high proportion of RMB revenue, and depreciation in the first quarter of large, corporate estimates will affect the Ji Mao interest rate fell to about 30-31%, the industry's foreign exchange losses amounted to 10 million yuan, affecting about EPS 0.3 yuan.

More than 20% other competitors have also invested in mainland China, and the price of the product to grab the city price pressure, product price decline, estimated the overall price drop of about 15%, but this year accumulated in the mainland price decline amounted to 20-25%. Legal person said that last year the company's IC shipments of about 900 million points, this year's overall shipments can increase more than 20%, but because of the decline in product prices, so that annual revenue growth of about 10-12%.

The second, third season will enter the trading season, optimistic about the future of higher corporate operations, but at present in the mainland market to remind the accumulation of market share of about 35-40%, this year 4 to target to maintain market share, in order to maintain the competitiveness of the company, sales strategy "to measure the price of system", fear of affecting the gross margin performance, expected this year gross margin range of about 31-34%, power struggle to maintain last year's level.

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