East Bay Q1 small earn; Q2 is expected to have two digit growth

LED packaging manufacturers in the first quarter of this year, the first quarter of 21% yuan (RMB) fell to $1 billion 848 million yuan (the same below), the quarter minus 9.9%, minus two years, mainly due to the impact of the Chinese Lunar New Year and the average number of days the product price decline. However, due to the cost of return to normal, the estimated post tax earnings, profit and loss situation is better than last season. Expected to push up in the lighting season, coupled with the gradual increase in the contribution of European business, the second quarter revenue is expected to increase by a quarter of the magnitude of the figure in the second half of the year there is a better chance than in the first half of two.

In the past, the East is the LED packaging manufacturers, and has been the main consumer products and backlight applications. In recent years, accelerate the transformation, the current lighting products (including lighting, lighting, intelligent lighting system, not supply components) the proportion of nearly 6, the proportion dropped to about 3 into the backlight (TV and mobile phone backlight each half).

At present, the east of the main lighting products in the United States to supply large access customers, in Europe and Taiwan to Toshiba brand sales (in the fourth quarter of 2015 to obtain Toshiba brand lighting products in Europe and Taiwan sales rights). Estimated this year's lighting products sales in the United States is still the highest proportion, about 7, the fourth quarter of last year, this year the proportion of new European market is expected to rise to 2, Taiwan and Southeast Asia and other regions the proportion of other sales of about 1%.

Backlight, backlight panel though demand for LED luminous efficiency, the amount of size tends to be flat, the rise of OLED application for small and medium size backlight applications will worry, however, because the company believes that the transformation of the lighting layout earlier, the overall operating face of LED industrial structure change caused by relatively low risk.

The original production base is quite fragmented, mainly in the past to cooperate with the customer to supply the backlight. With the restructuring of business restructuring, the company's five new plant is about to operate in the second quarter of this year, when the lighting products will gradually focus on the production of new shares of the new plant, based on Made in Taiwan, expand overseas sales of. Three headquarters will retain the LED component packaging and test lines, East pipe, Yangzhou is still playing and the supply of mainland backlight customers.

By the lighting season and the impact of the European market, the fourth quarter of last year, revenue and gross profit margin increased, but due to the cost of more, resulting in a single quarter is still a small loss. In the first quarter of this year led to fewer days of work due to the Spring Festival, coupled with the decline in product ASP compared to the same period last year, making the first quarter revenue lower than the previous quarter and the same period last year, but the company can earn less. With the advent of the lighting season, as well as to enhance the contribution of the European business, the second quarter is expected to warm up in the second half should be better. Target annual profit improved compared to last year.

The East Bay in the fourth quarter of 2015 revenue of about 2 billion yuan, an annual reduction of 14% quarter by 25%, gross margin increased to 21.06%, quarter by 3.4 percentage points to annual highs, but due to cost more, leading industry is still small single quarter loss of 1 million yuan, net profit of 9 million yuan, earnings per share of about 0.03 yuan. Annual revenue of about 8 billion 93 million yuan, an annual reduction of about 10.2%, gross margin of about $17.37%, an annual decrease of 3 percentage points, EPS about $0.63.

In the first quarter of this year, revenue fell to 1 billion 847 million yuan, a quarter minus of 9.9%, an annual reduction of $21.08%, due to the cost of return to normal, the first quarter profit and loss performance is better than the previous quarter. In the second quarter of the season pushed up, revenue is expected to show an increase of two digits. The second half should have kinetic energy.

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