Accumulation of Q3 boarded peak EPS more than 2 yuan revenue estimates double digit quarter

Accumulation of third quarter peak season operating performance is good, revenue approaching $700 million mark, the company estimates EPS more than 2 yuan, the highest peak for this year's operations. However, due to the fourth quarter into the traditional off-season, estimated revenue quarter decreased by two digits.

In recent years the main growth momentum from the small market space, the future compound annual growth rate of more than 20%, quite optimistic, because the mainland competitors also surging, legal analysis, at present the product price competition, revenue and profit of company performance next year, estimated to maintain growth, but the growth rate temporarily see conservative.

IC design for the accumulation of the company, the product is mainly driven by IC LED, the application to display the main screen, other applications include building lighting, TV backlight and general lighting. Revenue accounted for about 90% of the display, LED lighting accounted for about 10%. The company is the world's largest display LED driver IC manufacturers, global market share of more than 50% in the mainland market share of about 70%.

The company's third quarter peak season operating temperature, revenue of $697 million, an increase of 8.24% quarter, better than market expectations, but because of intense competition in the price of the product, the gross margin of about 31-32% between the estimated EPS can be more than $2. But in the fourth quarter of operations into the traditional off-season, and for the third quarter period high, estimated revenue quarter at a rate of up to two digits.

The first half of the cumulative total revenue reached 1 billion 182 million yuan, the annual increase of 20.39%, net profit of 105 million yuan, EPS3.21 yuan, EPS1.22 yuan to grow significantly over the same period last year; the second half performance is expected to be slightly better than the first half, the annual EPS estimate of about 6.5-6.6 yuan.

This year the main growth momentum, the mainland market is small pitch screen (pitch (pitch) <6mm) pull goods market booming, and optimistic about the future of small spacing market will grow to $300 million this year from $800 million in 2021, the output value of compound annual growth rate of more than 20%.

To snatch a piece of cake, mainland competitors also surging, legal analysis, at present the product price competition trend, old bargain speed, the company gross margin performance by quarter will probably will be warm in the first quarter of this year, the gross profit margin of 34.91%, the second quarter gross margin of 32.46%, corporate valuation third quarter gross margin fell to 31-32%, the four fear fell below 30%; and although the legal person is optimistic about the company's growth next year is still operating, but due to intense market competition, product price and speed, performance of revenue and profit growth rate, look at the conservative.

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