Light hung Q3 revenue quarter by 10.8%, annual revenue is flat or a small increase

Table LED chip factory light win Tech in the third quarter of this year was affected by seasonal factors and the impact of relocation, single quarter revenue lower than the previous quarter and the same period last year. Is expected in the fourth quarter will continue to move to the factory, but also will purchase the infrared and ultraviolet LED equipment, mainly to buy two mobile phone units in self adjustment modification, estimates of revenues in the fourth quarter may be similar to last season. Estimated annual revenue was flat, but the gross margin improvement, profitability is expected to improve.

In 2018, the company expected, the main movement can be from four yuan LED, infrared and ultraviolet products. Among them, the proportion of four yuan may be increased to 5, LED to UVA product growth strength of UV light is stable and is expected next year to maintain more than 10% increase in shipments, as for the high technical threshold deep UV UVC also needs further promotion.

At present four yuan LED contains the red and yellow light and infrared light IR products accounted for the proportion of revenues of about 4 Hong%, UV products accounted for about 2, the green LED accounting for 15%, the proportion of blue LED 2 as the following. Due to ultraviolet and infrared products is relatively high profits, while the demand for four yuan LED is mainly used in automotive, decorative lights, lighting control and so on, plant niche market, more stable, and actively adjust the company recently high proportion of ultraviolet and infrared quaternion.

The second quarter of this year in the traditional peak season pushing up revenues, heating, and appearance, product mix adjustment benefit rate stood at 28.6%, Dan Jimao hit a record high of more than 5 years, but because the provision of accounts receivable bad debts, resulting in increase of operating expenses, operating profit is mediocre. The third quarter costs back to normal, but also the factory moved from the Taiwan area, Tainan Science Park to tree Valley Park, estimated gross margin may be affected.

The expected relocation will continue to work in the fourth quarter, in addition to the existing production equipment to migrate to the new factory, the company is also planning to buy infrared and ultraviolet equipment, mainly to buy two mobile phone and self adjustment modification, estimated depreciation expense increase co.. But the impact in the off-season, relocation and equipment import factors, expected revenues in the fourth quarter of mediocre.

In September this year, revenue fell to 93 million 770 thousand yuan (NT, the same below), month minus 15.1%, the annual reduction of 9.9% in the third quarter revenue of about 309 million yuan, an annual reduction of 3.2% quarter by 10.8%. Before the three quarter total revenues of 970 million yuan, the annual increase of 2.36%. Estimated annual revenue is expected to be flat or a small increase in earnings per share, have the opportunity to challenge the high band in recent 3 years.

Light hung for industry change in recent years, and actively adjust the product portfolio, in 2016 revenue and profit industry bottomed out, but because the recognized exchange loss and CB loss caused investors to redeem, only small profit after tax. In 2017 the proportion of Yinliji products, improve product mix optimization, gross profit margin further rise, the first half of this year EPS about 0.27 yuan, a turnaround.

Source: Money DJ

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