Financial crisis swept the LED industry have lowered the foreign capital of crystal electricity, billion light target price

Recently, the United States and the United States Securities downgrade LED epitaxial plant crystal electric rating, target price of 24 yuan to see nt. At the same time, Paris securities is expected to Nichia will take the lead in price competition has also downgraded billion light profit in 2009 is expected to reach 40%, the target price dropping 32.9 yuan nt.

2008, the expansion of electricity capacity of about 40%, still need to mention the fixed costs, capacity utilization is not high, the first quarter of 2009 gross margin will remain low. Citigroup securities expects the first quarter of 2009, the first quarter gross margin may fall to 8%, while the company's gross profit margin in the first quarter of 2008, there are still $21.4%. In addition, consumer demand for electronic products, is expected to continue until at least 2009, the United States is expected to profit in 2009 will be reduced by 97% compared with the electricity in the year of 2008, may only barely draw gains or losses. Citigroup Securities Research Report lowered the price of electricity, etc., from buy to sell, the new target price of NT $24. The analysts forecast in the fourth quarter EPISTAR capacity utilization rate and the average price decline in shipments, may appear before the deficit, and until the second quarter of 2009, do not see signs of improvement, the road ahead will be difficult.

LED industry has always been able to withstand the sluggish downstream packaging plant, it is difficult to escape. Paris securities in the Research Report lowered the profit forecast and target price in 2009. The research report pointed out that in 2009 the global LED demand growth from the original 45%, down to 31%, while the Nichia will take the lead in a 30% attack, formerly Taiwan area manufacturers in the mobile phone and notebook computer backlight market, will affect revenue and profit billion light packaging factory in 2009. Paris Securities believes that in 2009 the global notebook shipments will decline by 20%, small notebook computers will have an increase of 5.2%, mobile phone shipments decline of, resulting in the growth of demand in 2009 was only about LED. In the market growth as expected, competitor price over the occasion, is expected to 2009 Everlight revenues may decline slightly in 2008, gross margin will be from the original 30% dropped to 21.8%, earnings per share dropped to 1.68 yuan NT, is now expected to reduce by 40%. However, Paris securities also pointed out that the financial situation is good, abundant cash, will be able to spend the winter.