Accumulation of small revenue in June, optimistic about small spacing display market demand.

Accumulating by the benefit of the products, the company expects that the second quarter revenue is expected to increase by double digits in the year. However, in June, the profit level of the first quarter is expected to be better than that of the same period last year as compared with that of May. For the whole year, the legal person thinks that, as the base period of the second quarter is relatively high, the third quarter will see steady second quarter water level. The annual revenue will have double-digit growth space than that of last year. However, the gross profit margin in the second half of this year is still one of the key points for continuous observation, and the profit can be better than last year.

The product is IC design company. The products are mainly LED driven IC, and the application end is dominated by display screen. Other applications include building lighting, TV backlight and general lighting. According to the proportion of each product line in the first quarter, the standard 25~30%, niche type (multi-channel and high level integration) 65~70%. Accumulating for the global small spacing LED display drive IC city occupies the first place, accounting for about 60%.

Accumulating the status and technical advantages of a small spacing market, the current IC based shipments are still dominated by 5153 of the 16 channels. This year, the international big factories are gradually turning to vehicles, so that the demand for the 48 channel LED driven IC will be transferred to the Taiwan plant, and the accumulation is also expected to benefit. The 48 channel products include 5353, 5359 two, and the company's annual target shipments. The annual increase is 3~5%.

In the face of this year's market, accumulation continues to be optimistic about small spacing display drives IC market demand, due to wide application range, driven by the high quality demand of display screen, applications such as concerts, conferences, cinemas and so on will drive the shipments of high-class integrated IC gradually expand.

The outside world is also concerned about the progress of product development in Mini LED and Micro LED, accumulating that Mini LED will be shipped to mainland mobile phone manufacturers by the end of this year, but the actual volume and contribution of Mini LED will still need to be continuously observed. The accumulation of Micro LED indicates that its product technology has been put in place, but the attitude of other supply chain is still need to be observed. The market attitude will be clearer in the second half of next year.

Accumulation indicates that, on the client side, the growth of overseas customers is strong, and the demand of Korean and American customers is particularly strong. As Korean customers start cooperation at the beginning of this year, customers' new state cinema and the original panel are driving demand. The absolute amount of estimated overseas customers will increase by 4 in the first half of this year. In the second half of the year, kinetic energy will continue.

In terms of vehicle usage, the accumulated lock in front mounted LED light market was introduced, and accumulation indicated that due to the long and complex vehicle specification certification period, the existing products were certified to be sending samples to terminal customers, but the actual contributions need to be fermented next year.

Accumulating in the first quarter, thanks to the benefits of the products of the IC, the price adjustment strategy of the standard type of products is effective, and the revenue is 684 million yuan (NT $, the same below). Compared with 610 million yuan in the same period last year, it increased by 12.16%, gross profit margin reached 34.2%, EPS was 1.29 yuan, compared with 0.81 yuan last year.

In the past, the accumulation of standard IC was under the pressure of price competition from mainland competitors, and the gross margin level remained at 20~30% in the past. However, driven by factors such as product mix adjustment, strong overseas customers' pulling and strong renminbi, the first quarter of this year reached 34.2%, a new high in the past 2 years.

Looking ahead to the second quarter, the company expects to continue the growth trend in the first quarter. Revenue is expected to grow by double-digit growth in June. However, in June, the profit margin was expected to maintain the first quarter water level because of the adjustment of the customer's inventory level, while the gross profit margin was expected to maintain the first quarter. The profit is expected to be better than the same period last year.

Looking forward to the whole year, the legal person believes that, as the base period of the second quarter is relatively high, the third quarter will see steady second quarter water level first, and with the continuous layout and technological advantages of the small spacing LED drive IC, the annual revenue will have double-digit growth space than that of last year, but the gross profit margin in the second half of this year is still one of the key points for continuous observation, and the profit can be better than that of last year. 。

Source: Money DJ

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