LED upstream excess situation will continue until 2020, all aspects of the impact of the crystal factory will be affected

Foreign Morgan Stanley said in the latest corporate report, the past LED upstream surplus situation, every two years can be improved, but this is different from the past, at least until 2020, the oversupply will continue. Upstream epitaxial plant profit, cash management will be affected.

Morgan Stanley pointed out that the price of electricity since July 2014, has fallen 7 into the same period, the stock market fell by more than 9%, reflecting the LED industry is in a downward cycle. But this decline cycle longer than ever, mainly the market can not find a strong demand for new lighting outside.

Morgan Stanley said, Taiwan leading epitaxial crystal electric has announced production cuts and whole plant and to cope with the new normal, but did not announce the machine or inventory asset impairment, so even if the loss per share last year of more than 2 yuan (NT, the same below), crystal electric net value per share is not affected, as at the end of the year to maintain 51.8 yuan per share. However, the big friction is estimated that there are at least 200 crystal hand on the old machine, the efficiency of the operation of several plants is not high, these factors may make the net value of the crystal is overvalued, the future may be a step down.

The new century belong to LED epitaxial plant in the fourth quarter of last year's hit stock, and the old machine writedowns, lead to more than 5 yuan per share last year burned, but it was only half the stock, earnings relatively light.

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