Wing Chong Q2 trap loss; expected Q3 revenue recovery

LED manufacturers revenue in the second quarter of this year, although the performance is stable, but because of poor product mix and price pressures, single quarter gross margin fell and fell into a loss. Expected in the third quarter of the season to drive the backlight heating demand, shipments and revenues have the opportunity to increase the quarter by the magnitude of the figure of two, but the actual profit and loss situation depends on the magnitude of the gross profit margin.

Rongchuang for Hon Hai group, LED packaging manufacturers, the two largest shareholder of Hon Hai and Nichia major customers include Nichia, Innolux and Japan / Korea, mainland manufacturers. At present, 9 of the products are still used in the backlight market, including lighting and new applications, such as the proportion of the car is estimated to be about 1.

(Photo Credit: Wing Chong official website, Wing Chong AOT headquarters)

In support of major shareholders, in the past few years, although the LED industry is facing severe correction, prices continued to fall, but still maintain profitability. However, the second quarter of 2016 by the product portfolio is poor, price pressures and other factors, but still stable revenue, gross margin fell sharply, the industry and tax are mired in losses.

Looking forward to the third quarter, driven by the traditional peak season backlight demand, the company is expected to have the opportunity to pick up the last quarter of the third quarter revenue of the magnitude of the last two digits, or even slightly higher than the same period last year. Because the utilization rate increased, gross margin is expected to improve. But the actual increase in profit margins further observation.

Rongchuang 2016 second quarter revenues 1 billion 310 million yuan (NT below), quarter by about 1.5%, the annual reduction of 6%, but one quarter gross margin fell to 9.04%, quarter by 5.7 percentage points, the annual reduction of 4.3 percentage points, the industry turn, operating loss of 27 million yuan, net loss of 33 million yuan, 0.23 yuan per share loss.

Accumulated in the first half of revenue of about 2 billion 604 million yuan, an annual reduction of nearly 17% in the first half gross margin of 11.86%, an annual decrease of 4 percentage points, operating profit of $12 million, an annual decrease of 93%, after tax loss of $3 million, a loss of $0.02 per share.

Following the June revenue rebounded in July to further enhance revenue to 513 million yuan, an increase of $8.8%, an increase of 11.9% in the previous year, the cumulative total revenue of about $3 billion 117 million in the previous year, an annual reduction of 13.29%. Third quarter revenue estimates have the opportunity to better than last season.

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