Brazil World Cup will be temporary, LED beat up factory

Benefit from the Brazil world cup of large size and high resolution 4K TV market demand increases, the average LED industry second quarter backlight demand order visibility up to 1-2 months, chip and packaging manufacturers operating rate have stayed high, trading remained buoyant.

LED Taiwan factory in the first quarter, and four yuan of traditional lighting backlight products demand is exuberant, the overall performance of most see the growth outlook for the second quarter, officially entered the traditional peak season, with the LED lighting and backlighting and other related applications demand synchronization for manufacturers to order visibility elongate, overall second quarter LED plant operating performance will continue to flourish. Including EPISTAR, Everlight, East Bay, Hong Qi has full capacity utilization rate.

LEDinside Research Assistant Manager Guo Zhihao said that at present the backlight LED order visibility average 1-2 months, chip and packaging manufacturers have stayed high utilization rate. In kinetic energy, the June World Cup in Brazil, the large size and high resolution 4K TV market demand increases, and the implementation of lighting applications in nuclear power issues fermentation and energy saving measures, is expected to accelerate the LED lighting penetration, is to highlight the follow-up of LED industry.

Crystal electricity, said the market demand this season, we are looking for capacity, at this stage the market needs to focus on LED backlight and lighting, the third quarter is the most significant demand for LED lighting. In addition, the traditional four yuan product demand is also quite strong.

Chairman Ye Yinfu said billion light before the Brazil World Cup and 4K2K TV LED TV backlight demand this year, demand is good, in addition LED lighting has entered rapid permeability move up period, most of the products are better than last year.

The overall LED industry boom picked up significantly, also directly reflected in the upstream epitaxial package and two leading crystal power plant and light billion revenue performance, two companies in April revenue synchronous rewrite record, May orders continued full, continued high probability.

Billion light said, benefiting LED lighting and backlight products demand a full rise, driven in April revenue of 2 billion 557 million yuan of new Taiwan dollars, of which the most robust backlight products, production capacity to maintain full load. For the second quarter outlook, but also relatively optimistic, 100 million light, said the current order visibility to June, to the present situation, the operation will be better than in April, the entire second quarter is expected to maintain growth momentum.

East shell in the lighting and backlight driven growth of double spindle, second quarter results are expected to increase in the number of quarter of 2 digits. Donper pointed out that Europe and the United States have entered the path of lighting products, TV backlight demand driven in advance stocking tide, plus a small size mobile communication products are new international brand manufacturers listed order. The second quarter outlook optimistic, will greet the coming season.

Another packaging factory Wang Qi trading this year be expected to have a big surprise, this year in the backlight, lighting, LED display screen needs three product line driven by strong revenue, fast turn Yang, April capacity utilization rate up to 105%, the overall production capacity of bursting, order visibility has to June, Wang Qi Chairman Wang Binglong said, as of June, with production capacity, this year is expected to be over years.

Wang Qi although this year in February 1, gallium rate is poor, only about 5, but from the beginning of March significant growth, lead to NT $530 million to new highs, the monthly increase of 60.2%, in April amounted to 585 million yuan NT, for second consecutive months to rewrite a new record, outstanding performance in stocks.

However, despite the LED manufacturers to maintain high utilization rate, high visibility LED orders, but after a painful lesson 2 years before the industry supply and demand rapid turnover, firm expansion and more cautious. In addition, revenue is affected by the impact of the annual decline in 10%-15% prices, profitability continued to be compressed is one of the reasons.

From the observation of the first quarterly report, LED factory revenue up most beautiful figures, but the figures does not too satisfactory, in the upper reaches of grain factory as an example, the three major grain factory in the new century, only for second quarter profit, the rest including EPISTAR, canyuan, Taigu and other grain plants are paid out of earnings losses.

Although the profit is not too bright, but relatively few before the season, various manufacturers gross interest rates are generally not a small progress, including EPISTAR first quarter gross margin increased to 15.23%, compared to 6.26% last year and 13.1% in the previous quarter have rebounded significantly.

Legal person said, the second quarter has many LED manufacturers capacity utilization is further pulled to the full load condition, then the third quarter also seems to have the opportunity to continue with this, let manufacturers begin to have the opportunity to pick list, the product portfolio and adjusted to the best state, thereby higher overall profit performance, in addition to revenue, profit is expected to getting better.

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