Taigu, Lunda and Guangjia estimate 2Q11 turnaround

Recently, LED grain mill Taigu (3339), (3698) and Ronda Guangjia (8199), affected by the traditional off-season and product price decline, 1Q11 earnings loss occurs. Looking ahead, manufacturers said, with LED LCD LCD TV shipments after another heavy volume, revenue and profitability is expected to improve. Taigu Q1 with revenues of NT $761 million yuan, the annual increase of 51.8%, gross margin products affected by the decline in value, -0.97%, far lower than compared to the same period in 2010 24.85%; net loss of NT $87 million, a net loss of 0.32 yuan EPS. However, with the TV backlight products have begun to send a small monthly gross margin has rebounded to 2 digits, the estimated Q2 single quarter gross margin will be able to return to more than 10%. Ronda Q1 with revenues of NT $1 billion 797 million yuan, the annual growth rate of 37.2%; gross margin from 20.91% for the same period in 2010, down to 7.96%, a decrease of 12.95 percentage points; net loss of NT $74 million, EPS net loss of 0.2 yuan, than the same period in 2010 net income of 152 million yuan and net profit of NT $EPS 0.6 yuan. Ronda said, with Q2 to enhance the rate of capacity utilization, single quarter revenue and profit will be better than Q1. Guangjia Q1 non consolidated revenues of NT $807 million yuan, the annual reduction of 2.3%; gross margin from 29.21% for the same period in 2010, down to 7.06%, a decrease of 22.15 percentage points; net loss of NT $16 million, EPS net loss of 0.03 yuan, are inferior to the level of the same period in 2010. Guangjia said that the low rate of utilization of Q1 production capacity, resulting in cost push, plus the Korean high customer product specifications, also affect the yield performance, in which a single month in February because of working days, fewer shipments decreased, the monthly loss. However, with the April TV backlight products orders warming, the target Q2 single quarter gross margin will return to more than 20%.