Taiwan LED product prices slowed down

Taiwan LED industry weakness, revenue growth rate is not as good as 2007. LED manufacturers have started to actively adjust the product portfolio since the second half of the year, although the season is not too busy, but the price decline has slowed down, there are still many downstream firms in third quarter profits are better than the second quarter.

The small and medium size demand rapid direct flip effect, since the second quarter of 2008, the LED industry into the adjustment of inventory digestion period, since the second half of the downstream packaging manufacturers inventory sales faster than the upstream chip factory, the upstream profit performance is generally better than. Wang Qi (6168), (2393), billion light East Bay (2499), (3031) and Baihong Ding (6226) new century packaging manufacturers and upstream of the application (3383) said, affected by the price decline slowed, coupled with the depreciation of the NT dollar, is conducive to the exchange of interest return. At the beginning of the third quarter earnings will be better than the second quarter.

Wang Qi said, the third quarter of the industry revenue performance was significantly better than the second quarter, the capacity utilization rate from the second quarter 40%-50% pulled up sharply to 60%, plus the product portfolio optimization, in addition, there are new Taiwan dollar exchange gains, net interest rate is expected in the third quarter compared with the second quarter will significantly enhance. In 2008, the global financial industry a huge fluctuation, the second half of the company to focus on profit promotion strategy, and to reduce the debt ratio, high cash position, following the first half of the year reaching beyond market expectations of the brilliant achievements, the company is confident that the third season more dazzling performance.

As a result of the sharp depreciation of NT dollars, the third quarter will be a considerable income. Preliminary estimates before the February billion light return almost, exchange gains for investment in NT $100 million, gross margin will also sync up, the establishment of the overall third quarter profit is better than the performance of the second quarter trend.

Baihong was good in 2008 following the LED street LED street market, Chinese orders in China and Southeast countries took, also actively grab LED street market in Taiwan area, in addition to the northern city has been part of the underlying case, for the rest of the case also have confidence. In the part of profit, also benefit the NT dollar exchange rate to depreciate, in July and August is approaching the Baihong profit second quarter profits, is expected to see 140 million yuan on the third quarter earnings Baihong (NT), compared with the second quarter growth of more than 30%.

East Third Quarter customer demand significantly back to warm, the cumulative revenue of $838 million in the third quarter compared with the second quarter revenue growth of about 14.6%. The company expects in shipments and revenue growth, and capacity utilization compared with the second quarter growth of 40%, the third quarter gross margin has gradually picked up, the industry profit is a bit better than the second quarter. In addition, the third quarter of the exchange rate depreciation of the yuan, is expected to return to the initial exchange rate of about $40 million (NT).

In the third quarter Guangding capacity product portfolio optimization, coupled with the depreciation of the NT dollar exchange return earnings, according to internal company since end July earnings of more than 11 million yuan (NT), monthly profit per share of about 0.15 yuan, is 0.23 yuan in the first half of 65%, August will be better, the overall third quarter earnings will be better than second season.

The new century a single month since 2008 revenue also followed monthly highs, third quarter revenue hit a record high, the green wafer (EPI) has established the market dominant position, with high proportion of green products, gross margin for the third quarter surge. The new century in July and August after tax earnings reached 85 million yuan, gross margin has increased to about 45% in September, the proportion of green upgrade, with the depreciation of the NT dollar, is expected to move up the overall gross profit margin in the third quarter to further enhance the single quarter revenue and profit is expected to be synchronized at historic highs.

Source: China Semiconductor Lighting Network