Siu Chi shares rose significantly enhance the LED business can erupt

Siu Chi shares today disclosed the 14 three quarter earnings: during the reporting period the company achieved the main business income of 5 billion 448 million yuan, an increase of 16.52%, of which three quarter 2 billion 82 million yuan, an increase of 0.01%; net profit attributable to shareholders of the parent company 503 million yuan, an increase of 12.84%, in the three quarter to achieve 220 million yuan, an increase of 7.16%; during the reporting period the company achieved EPS0.314 yuan, the three quarter of 0.138 yuan; at the same time, the company announced that its expected annual net profit attributable to shareholders of the parent company grew by 0-20%.

Affected by the relocation of the plant, the main growth rate is lower than expected

Despite the "World Cup" exit, but in overseas economic recovery under the background of the TV industry export continued good growth since the beginning of the year, but the three quarter of the company's main performance is relatively flat, estimated the main reason lies in the company or a new Industrial Park recently put into production, the original four factory has started to prepare for the pre relocation work, it has been a drag on due to the current production capacity of the company; but the demand in the LED industry and the company's production capacity gradually released under the background of Future Ltd is expected to LED backlight and LED lighting sales to maintain good growth.

Gross margin significantly improved profitability improved

In the television business continued to optimize the product structure and high margin LED business income increase under the impetus of the three quarter consolidated gross profit margin reached 14.67%, an increase of 2.77 percentage points; but at the same time the company costs during the rate is also improved, the company increased R & D and wage expenditure impact the three quarter rate of management fees grew 0.68 at the same time points, the rate of cost of sales and financial expense ratio also rose 0.57 and 1.10 percentage points; under the combined effects of the three quarter attributable net profit margin was 10.58%, up 0.71 percentage points.

Production inflection point has been, LED business outbreak can be expected

This year in the end product prices and consumer awareness of energy conservation promotion under the background of the LED lighting industry into the high-speed penetration stage, and the key factors restricting the development of the company's LED business is still the bottleneck capacity; the company has established the LED business as the focus of future development, there are large-scale production capacity construction in Nanchang and Shenzhen, long-term or up to 500 production lines, and the recent Nanchang base 100 packaging line is expected in the trial production, demand and production capacity of the turning point has been to Future Ltd LED lighting business background will enter a period of rapid development.

Despite the short term by the company's main plant relocation effect of growth has slowed, but with the new Industrial Park production and plant relocation is completed, its long-term growth for the company to provide strong support; industry demand and production capacity bottleneck gradually resolved based on the company's LED business will enter a high speed period of the outbreak, in addition to television business in overseas and domestic economic recovery order transfer trend is expected to maintain steady growth.

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