This year Mini is expected to improve the profit of Luanda, LED backlight production next year

Taiwan LED manufacturers lextar electronics this year continue to adjust product mix, lighting products to pick a single production, resulting in declining revenues, but gross margin improvement, industry turnaround, the cumulative three quarterly earnings per share of about 0.17 yuan (NT, the same below). Expected in the fourth quarter in the off-season, under the influence of cooling performance, but the annual profit is still better than last year. The company is active in Mini LED and Micro LED technology research and development, is expected in 2018 will have a new production LED backlight Mini.

Although this operation is mediocre, although the turnaround, profit is lower than expected, the company in 2018 outlook remains positive. The products, the company is with a number of customers to develop Mini LED backlight products, mainly used in notebook computers, monitors and other large IT products, is expected to continue to see the products listed in 2018.

Application categories, company recently continued to adjust the product mix, price competition for large lighting products of selective orders, and actively expand the application of niche products, including UV products to the United States before the five Manicure machine brand market; in addition to the application of IR infrared module into the mobile phone, laptop, access control systems, security monitoring field to also cut IR infrared module both iris and face the dual biological identification function.

The factory, the new plant is located in Anhui Chuzhou Lunda started early in the third quarter of this year. Is expected to be completed in the first half of 2018. The next part of Suzhou factory and Taiwan factory capacity will be moved to Chuzhou factory production, the overall production capacity adjustment planning will be gradually completed next year.

Among them, Chuzhou plant will be the following tour lamp assembly and packaging fittings, Suzhou plant will be mainly responsible for the MOCVD process, the Hsinchu plant in addition to MOCVD process, will also retain part of package packing capacity, responsible for the production and development of new high order products.

As the Group invested Lunda LED vertical integration has always been factory, from upstream, downstream to the LED epitaxial grain package and module can be self production. Over the past few years, once the full development of lighting, lighting the proportion of more than half, by the rapid decline, the competitive effects of lighting products, recently orders strategy, adjust lighting lighting products proportion dropped to 4 percent, up to 6 into backlight.

The third quarter of this year because the lighting orders strategy is still cautious, even if the backlight shipments in season, the overall revenue performance better than the previous season, plus some products lead to the decline in gross margin, cost increase, single season earnings per share is only about 0.08 yuan per share for the three quarter, the cumulative surplus of about 0.17 yuan.

With the backlight shipping season in the past, in October of this year fell to 940 million yuan in revenue, month minus 4.7%, minus 17.6% years, 10 months before the cumulative revenue 10 billion 280 million yuan, an annual reduction of about 11%. Estimates of revenues in the fourth quarter lower than the previous quarter and the same period last year, revenue this year will decline compared to last year, but the gross margin and profitability improved.

Source: Money DJ

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