Shunde industrial LED production line expanded to four this year

Taiwan, Shunde, the lead wire rack industry to enter the LED market! Because from Japan and Taiwan by Dachang, this year is expected to be expanded to four production lines, and in accordance with the corporate estimates, such product gross margin as high as 25% to 40%, in the new product performance to raise the proportion of investment, even if Shunde industry this year due to raw material gains by dilution, annual profit performance is still available.

Shunde industrial has two major product lines for hardware stationery and lead frame, the proportion of both were 14-16% and 84-86%, calculate the gross margin of the two corporate product line, hardware stationery about 19% to 20%, about 16% of the lead frame, and in recent years, Shunde industrial growth from a transistor lead frame.

Because the lead frame copper and other metal materials of international linkage, so high, in the international metal price volatility moment, Shunde industrial gross margin repeatedly by erosion, therefore, Shunde industry engaged in the development of new products; which will lock the LDE market development, the development of LED panel and lighting with light emitting diode the lead frame, but also by a Japanese international companies and two LED manufacturers in Taiwan certification, at the end of last year will have a production line into production.

Due to the strong demand of customer orders, Shunde industry is expected to continue to increase production line, is expected to the end of this year will have four production lines in place, so even if the Shunde industrial profit space will be as raw material prices continue to uplift and erosion in the gross margin this year, but the better LED lead frame production line, revenues accounted for gradually to enhance the contribution of Shunde industrial, corporate estimates the annual profit performance can still look forward to.

Source: Taiwan Business Times