Oversupply situation or ease? Optimistic about the prospects for Taiwan

U.S. stocks in the new quarter earnings week, LED large CREE in order to better than expected earnings figures in the fourth quarter of last year, as well as the earnings forecast for the first quarter of this year, the company is higher than the legal outlook, the stock price of first. The prospect of Taiwan LED group, also in the TV demand drives the first quarter results, legal institutions optimistic about the annual profit will continue to grow, not only raised the rating to buy crystal electric, and named about Lunda, Everlight, Wang Qi, Baihong business prospects etc..

Unified investment adviser associate Li Jianxun pointed out that the upstream of LED has been out of stock status previously from November last year, revenue fell at the end of the monthly revenue growth. The main reason is that the TV backlight demand for upstream crystal power, Ronda, downstream of the East Bay, the first quarter is expected to grow richer, and benefit from the full year theme is that the mainland LED gradually reduced subsidies, Taiwan factory profits sustainable growth.

Large volume solid crystal electric effect in crystal electric with canyuan and Taiwan under the international brand lighting for wafer supply and stable quality. Coupled with the expansion of production will be put too much cost, so in the future in the case of increasing the number of lighting products, to get the trend of crystalline power capacity will gradually formed. For Taiwan packaging plant, can accept the benefits of this advantage, consistent in the production in Taiwan, the other can also keep the Taiwan area of expertise and technology is not easy to flow into the factory.

Recently, CREE joined the Lunda private placement is intended to yield and quality of Taiwan factory, the same growth under the situation of the lighting market in 2015 will be due to the large site in Taiwan and crystal electric effect is more stable.

A new associate investment adviser Huang Wenqing pointed out that Taiwan factory in the backlight market is good, stable quality, has been gradually snatch factory orders to seize the land. In the first quarter of this year, the demand for raw materials in the back of the tide appeared in the first quarter revenues are expected to have 5%-10% Ji Chengchang. Taiwan packaging factory another profit trend is not visible LED and electronic Kanban with four yuan LED, exit the market in the infrared part of the Taiwan Japan Renesas, chip plant to replace, also led by LED, supplier factory gradually transferred to the Taiwan factory supply, such as Ding Yuan, billion light indebted.

Legal person and pointed out that the mainland government subsidies, the market oversupply situation will slow down.

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