Blu ray stability / four yuan growth, crystal Q2 peak season

LED chip manufacturers recently benefited from crystal electric blue LED quotes four yuan, only steady red LED shipments continued to grow, the fourth quarter of last year, although revenue quarter by 4% but the annual growth reached 7%, estimated revenue in the first quarter is due to the Lunar New Year holiday and the effect of cooling, but estimates after March will gradually rise, have the opportunity to enter the second season season.

Outlook 2017, the outside world for this year's electricity business outlook optimistic bias. The main reason is the mainland manufacturers some of the specifications of the blue LED grain price hikes, contribute to the blue LED market temporarily only steady. At the same time, the company continued to expand the high-end product business, including CSP non packaging chips, Flipchip crystal products, etc. are also conducive to product structure.

The crystal electric current is not only the world's top three largest supplier of blue LED grain, four yuan red LED grain supplier, the recent four yuan LED for heating demand, utilization rate, improve product portfolio optimization, gross margin improvement, should have a positive impact. Since the company has expanded four yuan LED production capacity, the company estimates, the proportion of LED revenue of $four last year has reached more than 2 of this year, the opportunity to climb to a water level of 3.

The crystal is LED / LED, and it is used in panel backlight, lighting, Kanban, automotive lighting and other niche markets. The factory is located in Hsinchu, Miaoli, Tainan, and Mainland China, Changzhou, Shenzhen, and other regions.

By the influence of industry adjustment, EPISTAR since the second quarter of 2015 to the second quarter of 2016 consecutive losses, with the expansion of industry slowdown, the market order stabilization, coupled with the company to re adjust the capacity allocation, portfolio optimization, enhance the proportion of four yuan LED, following the 2016 third quarter gross margin of more than 13%, turning to turn losses into profits. The fourth is supported. Overall operating performance is expected in 2017 is expected to further improve.

EPISTAR 2016 third quarter revenue of 6 billion 590 million yuan, the 0.5% quarter growth, the annual increase of approximately 6.7%, gross margin is over 13.69%, operating profit of 190 million yuan, the industry profit, but due to the loss of industry (exchange loss etc.), single quarter pre tax net profit of only 53 million yuan, after tax net profit of only 3 million 50 thousand yuan. Accumulated in the first three quarters of revenue of about $19 billion 205 million, an annual decrease of 1.98%, operating loss of $1 billion 680 million, net profit after tax of $3 billion 387 million, a loss of $3.18 per share.

Fourth quarter revenue came to 6 billion 330 million yuan, the quarter minus 4%, an annual increase of 7%, the annual revenue of about $25 billion 539 million, an increase of 0.11%. Legal person in the fourth quarter to maintain a small profit situation, but due to the loss of the first half of the year, the estimated annual losses.

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