An interpretation of the merger in November revenue is still expected to continue climbing high, gross margin of Q4 have the opportunity to rise since the annual summit

LED lead frame manufacturer I-Chiun (2486) benefited from the SMD type lead frame demand still continued strong, at this stage, the gap between supply and demand still amounted to 20%, an interpretation of the season also continued to expand SMD production capacity, to the end of the year will be expanded to 400KK per month, with the new SMD type lead frame output continued to grow, and make the whole product sales mix improved, legal circles also estimate, optimistic I-Chiun November consolidated revenue will still be continued climbing record, more than 440 million yuan, and in December will decline in performance is not significant, the estimated Q4 gross margin continued to rise so far better than Q3, the annual summit, more than 26.5%.

I-Chiun Q3 benefited from the season when copper prices retreated reduce the material cost, plus high margin products revenue continued up to SMD 23%, so that the gross margin of ascension to 26.4%.

One interpretation of Q3 product revenue, including Lamp products accounted for 32%, SMD 23%, photo couper accounted for 5%, CCFL accounted for 35%, accounting for 2% of the back cover, vibration motor accounted for 2%; the company is expected, Q4 SMD with new product revenue proportion will increase in output and continuous improvement, continuous enhance the overall profitability and help.

I-Chiun internal assessment, expected 08 years SMD type lead frame is still the main sales growth momentum, mainly due to benefit from the medium and small size backlight demand continues to grow, it is relatively optimistic about this part of the demand, a preliminary estimate of 08 years Q2 SMD monthly capacity will be expanded to 600KK, 08 years of production capacity will double to Q4 800KK.

Source: Lean news