Crystal electric first half or loss and canyuan merger benefits next year

Crystal electricity revenue in the second quarter of this year amounted to NT $8 billion 130 million (about RMB 1 billion 678 million yuan), the quarter increased by 3, the new high, mainly due to the backlight and lighting demand with the increase. Second quarter earnings per share 0.5-0.6 yuan (RMB 0.10-0.12 yuan) up and down, but due to the loss in the first quarter, the first half of the total may still lose. Expected in the third quarter in the season of support, single quarter revenue is expected to maintain steady and high profit. As with the canyuan merger benefits appear when? Crystal electricity spokesman said, look at the next year.

In recent years, crystal electric operating scale continued to grow, with the scale of turnover from 2006 only about 6000000000 New Taiwan dollars (about 1 billion 238 million yuan), gradually came to the merger in 2013 turnover of 22 billion 200 million yuan NT (about 4 billion 582 million yuan), mainly through merger and strategic alliance. In 2007, with the completion of the first arsenic photoelectric and even Yong technology merger, so that the product line from blue to red, green tend to complete. Later also made Taigu 2 into equity, become the largest shareholder of taigu. 2012 to the proportion of 1:4.85 conversion to invest in a wide range of gallium, so wide gallium into crystal power 100% subsidiaries, the number of crystal MOCVD machine from the original 220-230 station rose to one fell swoop in one fell swoop.

At the end of June 2014, crystal electric has announced that it will 1:3.448 exchange ratio with canyuan, both sides is expected to be held in September 1st the temporary shareholders' meeting, the share conversion reference date is December 31, 2014, the future canyuan will become the 100% holding subsidiaries and crystal electric delisted, crystal electric MOCVD machine total will be 385 by now, jump 488 taiwan. In order to estimate the size of the global MOCVD machine to about 3200 units, after the merger of the total capacity in the global market share of 15%-20%.

Despite the smooth operation of the scale of growth, but in recent years, crystal earnings performance is relatively tortuous. Mainly because the LED manufacturers for several consecutive years of substantial expansion, LCD TV market growth rate slowed down, kinetic energy LED lighting was worse than expected lead to excess supply and LED prices, so the crystal electric operating conditions since 2011 after the downturn in 2012 or even a loss. Later, the expansion of the LED industry action slowed, LED lighting applications to accelerate the growth of crystal electricity in 2013 to turn a deficit, but profit is still thin.

The first quarter of 2014 the industry profitability continued to improve, but because the industry listed financial losses, the first quarter after tax evaluation and trap loss. With the backlight and lighting applications demand synchronous warming, crystal electric capacity utilization for the second quarter of this year, revenue to NT $8 billion 130 million (about 1 billion 678 million yuan), growth of 3, the annual season is more than 3, and a record high. Excluding external factors, to estimate the second quarter earnings per share of up to 0.5-0.6 million yuan (RMB 0.10-0.12 yuan) up and down, turn loss into profit. However, due to the loss in the first quarter, more than the first half of the total may still lose.

Looking forward to the second half, the company optimistic about the third quarter. Due to the high visibility of orders, the third quarter is expected to reach full capacity utilization. This year, the third quarter of this year, electricity prices have an opportunity to maintain revenue of NT $8 billion yuan (about RMB 1 billion 651 million yuan) above high-grade, and is expected to remain profitable. Annual revenue estimates will exceed 28 billion yuan NT (about RMB 5 billion 779 million yuan), may end up in profit.

As for the benefit of EPISTAR and canyuan after the merger, due to both the temporary shareholders' meeting in September of this year before the meeting, the share conversion reference date is December 31, 2014, although the two sides have the capacity to cooperate, but significant benefits could be estimated after 2015 will appear.

For more information about LED, please click on China LED network or pay attention to WeChat public account (cnledw2013).