Why not Q2 billion gross profit margin can exceed 20%?

In the first half of the LED boom down to the bottom of the package, the company's second quarter gross profit margin of more than 40 percent of the light to maintain more than 2, mainly scattered billion light product line, relatively stable profit. In the fourth quarter, Everlight said NT dollar depreciation and cost saving, the gross margin will be beneficial to warm.

The second quarter billion light by the overall demand backlight and lighting is poor, the decline and the package price, resulting in gross profit margin from Q1 24.71% to Q2 22.25%; but with the same packaging plant in the East Bay 13.62%, 13.37%, 10.7% rongchuang lextar compared still much higher. Mainly billion optical products, including optical coupler, mobile phone Flash, home appliances with LED, display, etc., even if the backlight and lighting and other bulk applications, not more than 25% of revenue.

The economic downturn caused by weak demand in Europe and the United States, TV backlight lighting manufacturers to launch low-cost LED lighting emergency city also makes the lighting price fall, due to external competition conditions change, Everlight said that this year in addition to the introduction of new products and low cost, but also expand the application of LED. In the lighting, the light began to use the Chinese chip to reduce costs, while the introduction of ex factory price of only 0.9 U.S. dollars of high pressure wafer bulb light; customer base from the top four lighting brands to expand to the top five lighting distributors.

Other applications, one hundred million light mobile phone in the Greater China region accounted for 4 of the market; the backlight market is a new Japanese and Korean customers. Billion simultaneous development of LED sensing applications, including infrared and UV packaging products.

Looking forward to the fourth quarter, the company believes that billion light through reducing the cost of materials, the dispersion of product lines, should be able to maintain stable profit in the low economy. Third quarter due to the cost of the chip, gross margin is expected to rise to more than 23% in the fourth quarter about Q3. Billion light acquisition of German Lighting Factory Wofi, the fourth quarter is the peak season, the proportion of listed Wofi revenue increase, so Q4 revenue will be better than Q3.

LED packaging plant east bay and Wing Chong is due to the product line is more concentrated, resulting in profitability fell. The East Bay on the LED bulb, the year before the three quarter performance spikes, single season earnings per share (EPS) also increased significantly, from 2013 Q4 after tax loss per share of 0.09 yuan (NT, the same below), to earn 0.87 yuan per share last year Q3. However, due to PHILPS, OSRAM in the first half of this year to push cheap bulbs in the United States, resulting in eastern Q2 earnings per share after tax only 0.2 yuan. Wing is due to the high proportion of backlight, Q1 earnings per share after tax last year more than 1 yuan, only $second in the first quarter of this year, only $0.29.

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