LED decline + street light signs reduced, Bai hung August revenue decreased compared with the previous year

Taiwan LED packaging plant Bai hung has been affected by street signs reduction, LED price decline and market competition since the end of the year. The revenue in the first 8 months has been reduced by 15%. Expected in the Sino US trade war variables interference, the second half of the year's performance is mediocre. However, although the industry has lost money in the first half of the year, it still keeps a small profit in spite of the income from outside rents and dividends. It is estimated that there will still be a small profit margin after tax this year.

In the long term, the main production base is located in mainland Dongguan and Henan, although the sales area is more than 5 in the mainland market, followed by 20% in the Taiwan market, including the United States and South Korea, accounting for about 1 of the total. But with the approaching tariff rate of 25% approaching 1/1 in 2019, the industry estimates that this may lead to the reduction of orders from many factories in China, and the subsequent substantive impact remains to be seen.

In terms of product mix, visible light LED components account for about 45% of revenue. The proportion of invisible light products revenue is about 45%, and the proportion of street lamps and other projects is about 1. Among them, in the past, the strong visible light products, such as sensors used in sweeping robots, smart homes and smart factories, and so on, have recently increased their competitive pressure.

The company said that this year's products are still focused on niche applications such as automotive electronics, electronic competition products, smart home, security and safety control, and cost-effective commercial lighting, hoping to improve profitability through improving customization and product differentiation. For example, all kinds of special vehicle indicators for fuel vehicles and electric vehicles, as well as various applications of infrared solutions and so on.

In August, Bai Hung's revenue dropped to 124 million yuan (NT $, the same below), a monthly decrease of 18.8%, and an annual decrease of 24.28%, setting a new low in the past six months. Accumulating revenue in the first 8 months was 1 billion 125 million yuan and 15% per year. Gross profit margin fell to 14.4% in the second quarter, a new low band in the last 7 quarters. The losses in the industry expanded, but with the income from outside rent and dividends, net profit of 9 million yuan and earnings per share of 0.05 yuan were maintained after a single quarter, maintaining a small profit situation, but the single quarter profit hit a new low of nearly 8 quarters.

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