LED packaging plant will face more losses than the epitaxial plant

It is reported that billion light (2393), Wang Qi (6168), (3031), Baihong donper (2499), (6164) Department of Huaxing heavy pressure loss are LED packaging industry in the first quarter. Billion light (2393) due to the high amount of revenue, the absolute amount of exchange loss is the crown of the LED packaging industry, it is estimated that the amount of the first quarter of 2014 billion loss of about $70 million to $100 million. At this stage, LED downstream packaging industry exchange loss pressure than the upstream epitaxial plant, such as crystal power, canyuan etc. epitaxial plant shipments to domestic packaging factory, to collect currency exchange NT, less pressure loss. Crystal electricity pointed out that the first quarter loss of only about a few million, the impact on the profitability is not high. Canyuan NT transactions accounted for more than 60%, the pressure is not exchange loss. Since February 2008, the rapid rise of the Taiwan dollar exchange rate, the appreciation rate of more than 8%, while the light billion yuan of money is not included in the $70%, the loss of pressure is not light. Billion light pointed out that the first quarter loss of tens of millions of dollars may not run away. Corporate estimates, billion dollar holdings parts of approximately $90 million, after deducting hedging positions, a rough estimate of exchange loss amount about fell 70 million to 100 million yuan per share, affect the profit of about 0.228 yuan to 0.19 yuan. Billion light pointed out that the actual amount of loss to the end of the quarter to know. Legal person billion in the first quarter revenue of 2 billion 700 million yuan, a slight decline in the second quarter of last year, compared to 5% yuan. The first quarter of 2014 has begun to light a small amount of shipments of OLPC low price computer LED backlight, is expected to third, the fourth quarter shipments enlarged. The 12.1 inch and 13.3 inch notebook panel, 100 million light that has entered the import design stage, is expected to start shipping in five and June. Legal person billion light year EPS estimates remained at NT $6. The macro Qi admitted that the hands of the dollar does not maintain the position, do not do hedge, the appreciation of the Taiwan dollar, will bear the pressure loss, as the amount of inconvenience assessment. Legal person is estimated in the first quarter of the sum of the amount of loss of about 30 million yuan, earnings per share impact of $0.17. Baihong export is relatively high, and the dollar based transactions, corporate exchange estimated loss amount to 40 million yuan fell about 30 million yuan. Baihong said that the real exchange loss amount to the end of the first quarter will know. Dong said that the company to export based, bear the loss of pressure is not light. Legal assessment of the amount of loss of about 40 million yuan. Huaxing exports accounted for a high proportion of revenue, in February due to foreign exchange losses of 10 million yuan, a single month to a loss of $3 million 300 thousand, a pre tax earnings of $6 million 880 thousand in February, earnings per share of pre tax earnings of $0.07. Huaxing pointed out that in March the amount of loss should not be higher than in February, but the first quarter of the amount of loss is still unable to estimate. Ligitek said, take charge, pay $$natural hedge, should be able to minimize the damage. Guang Lei has more than half of the revenue from the U.S. dollar, although there are hedging, but may still face losses.

Source: LEDinside