Macquarie Securities: the better performance of opto electric crystal

Taiwan guanlei recent operating performance much industry attention, mainly because of the outdoor display equipment orders increased steadily, it is expected to promote the guanlei to start a new round of business growth. Guang Lei is not only the second quarter of 2008 from the highway billboards and sports fields and display system of orders increased, the second half of the year including Suzhou, Shanghai Pudong International Airport more sky two project, estimated revenue will reach more than 600 million yuan nt. In addition, because few in the mobile phone market, Chinese guanlei layout, LED application in the traditional Christmas lighting, household appliances and consumer electronic products, the recent mobile phone market by the extent of the impact is relatively small.

In addition to outdoor display business performance, the first half of the industry is also optimistic about the guanlei LED chip business. Benefit from the wafer supply increases, estimated in 2008 four yuan LED month optitek capacity will be increased to 1 billion from 600 million, GaN LED monthly capacity by 120 million at present, at the end of the year increased to 200 million. In addition optitek also gradually improve its own production of wafer.

In Taiwan LED manufacturers, was the most promising is the crystal electric, but due to the recent downturn in demand for mobile phone, the second half of mobile phone demand is not high, so the current industry of guanlei's promising, there have been more than crystal electric potential.

According to the prediction of Macquarie Securities research, optitek 2008 June revenue should be roughly comparable to that of May, second quarter revenue is expected to be 1 billion 960 million yuan NT, single quarter profit up to 259 million yuan NT, single quarter EPS estimate of NT $0.5, Ji Chengchang rate reached 149%, the annual growth rate of 16%. Third quarter and fourth quarter revenue growth is expected to continue to grow. Cumulative revenue estimate of up to NT $7 billion 920 million this year, net profit of up to NT $1 billion 115 million, after tax EPS estimated NT $2.14. Looking forward to next year's estimated revenue will grow further to NT $9 billion 500 million, net profit of up to NT $1 billion 443 million, after tax EPS estimated NT $2.77. Although the industry overall performance is hard to assess, but because of the outdoor billboard business stronger than expected, Macquarie Securities still maintain the opto Outperform investment rating, 12 months target price of NT $38.

Source: Lean news