The growth of niche products such as vehicle and sensing is expected to return in the second half of the year.

Taiwan LED packaging Dachang billion light profit last year hit a 5 year low, the first half of this year continued to slump. In the first half of the year, earnings per share were about 0.79 yuan (NT $, the same below) and 49% per year. It is expected that in the second half of the year, with the growth of the traditional peak season and the growth of orders for vehicle, sensing and niche applications, there should be an opportunity to return to the temperature. However, because the profit level has dropped in the first half of this year, it is estimated that this year's profit will still decline by two digits from last year.

Among them, in July this year, the revenue rose slightly to more than 2 billion yuan, increased by 1.8% in the month and 8.1% in the year, and the total revenue in the first 7 months was about 14 billion 200 million yuan, or 10.7% per year. It is estimated that the overall third quarter revenue may increase by 1 or less during the quarter, but it will still face challenges compared with the same period last year.

At present, the proportion of the backlighting and lighting applications accounts for about 2 of the total revenue. The proportion of infrared / invisible light products is about 3. Other consumer electronics products, niche products and vehicle products are currently in the single digit figure. It is estimated that this year there will be an opportunity to increase to over 10%. Because the company has entered the original supply chain of Europe and the United States, including headlights, taillights, vehicle lighting and so on, it is expected that the revenue contribution of vehicle products in the second half of this year will be improved.

As for the newly developed Mini LED application products, it is still in the certification stage. It is expected that the fastest volume of shipment in the fourth quarter of this year is expected to be applied to vehicle, mobile phone / handheld devices and other related products in the early stage.

Under the government's preferential measures, the mainland operators have been actively expanding LED production capacity and accelerating the market grab. Although the company actively adjusts and optimizes product mix, product prices and market businesses are under pressure.

Although there was little fluctuation in gross profit margin in the first half of the year, the increase in revenue was due to reduced revenue and new product introduction. The surplus in the first half of the year was 0.79 yuan and 49% annually. The second quarter single quarter gross margin trend rose to 24%, but because of shrinking revenue, business interests still decreased by 54%, single quarter EPS about 0.54 yuan, quarter increase 1 times, annual reduction is still more than 3.

It is estimated that in the traditional peak season and vehicle use, sensing and other niche applications and new product shipment growth, there will be a moderate recovery in the third quarter revenue. The second half of the year is expected to be better than the first half of the year, but the profit may be quite different from that of the same period last year.

Source: Money DJ

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