EPISTAR: next year will expand the production of VCSEL, or in the United States Department of mobile phone supply chain

Table LED chip maker crystal electric in October of this year revenues by season and decline, estimated results for the fourth quarter will be lower than last season. However, the company for the next year, mainly including the positive view, the kinetic energy is working with the panel manufacturers in Taiwan area development, is expected in the first half of next year will launch a new generation LCD panel, LED backlight Mini equipped with Mini LED in addition, the company will expand the production of VCSEL epitaxial chip abroad next year, may enter the United States Department of mobile phone supply chain.

In both crystal electric equipment input of VCSEL epitaxial chip production two years ago, at the stage of optical communication applications. Outside the crystal electric may have been certified by Lumentum, and may receive IQE orders, but also for the next year and the subsequent relative operation if there is a chance to enter the United States Department of mobile phone 3D sensor supply chain, add a lot of imagination.

At present, only a few crystal electric machine for the production of 4 inch MOCVD VCSEL epitaxial chip, outside the company may increase 7~15 Taiwan 6 inch MOCVD machine into next year, VCSEL epitaxial chip production. For each machine monthly investment amount of about 400~500, each priced at more than $2000, gross margin significantly better than the now average estimate, if the yield and quality of orders in line with expectations, the contribution from VCSEL per share next year Lei chip may challenge 1 yuan (NT, the same below).

Both LED products, new capacity by mainland, out of competition, the company of LED grain prices next year the trend of conservative views. That blue LED grain prices decline next year may hit 10%, companies may through the development of new products, adjust product mix, improve the cost to ease the pressure on LED. The new products include Mini LED, Micro LED, VCSEL epitaxial chip and so on.

Although the Micro LED in the massive transfer of technology threshold limit, the estimation of the specific production point may also need a period of time, however, Mini and LED in crystal electric panel maker in Taiwan (AUO, Innolux etc.) cooperation, the first half of next year officially unveiled a considerable opportunity.

According to industry estimates, the TFT LCD Mini LED TV panel backlight design, the price is only six to 80% of the OLED TV panel, but the brightness, the quality is similar with OLED, power efficiency is higher. A 55 inch Mini LED LCD panel backlight using 40 thousand LED, a mobile phone panel can also be used with 6000~9000 LED, on the LED grain to help manufacturers capacity.

In addition, Mini LED is used for ultra small spacing display screen is also optimistic about the project of electric crystal. Currently EPISTAR per month for display screen RGB LED shipments of about 300KK, accounting for 3% of global proportion not to remain in the future growth space.

This year the three quarter EPISTAR revenues of 7 billion 57 million yuan, quarter by 6.2%, the annual increase of 7.1%, nearly 12 season highs, one quarter gross margin stood at 23.85% since 2011, a new single season high, operating profit rate of more than 12% is also high in recent years, single quarter net income 804 million yuan, earnings per share 0.75 yuan, for the past 10 seasons the best. A total of three quarter revenue of 19 billion 333 million yuan, the annual increase of 1.2%, EPS of about 1.18 yuan.

By season effect, crystal electric in October of this year revenues dropped to 2 billion 70 million yuan, month minus 16.39%, minus 2.9% years. The first 10 months of revenue of about 21 billion 500 million yuan, the annual increase of 0.78%. Corporate estimates of revenues in the fourth quarter lower than the previous quarter, gross margin due to lower utilization rate, may decline, but there is the opportunity to hold more than 20%. Among them, the blue LED in the fourth quarter shipments estimated $10% or more, four yuan LED shipments estimated quarter by 5%~10%.

Source: Money DJ

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