Taiwan LED plant is expected to turn around in the second quarter

The price of LED chips has been at the bottom of the valley and is ready to flip upwards. With the large amount of panel backlights and lighting, the production capacity of the two banks will be nearly saturated. The profit of the LED plant in the second quarter will be significantly improved. The target manufacturers are Epistar and Optoelectronics. Efesson is expected to turn a profit and will perform better in the second half of the year.

On the other hand, the price of LED light bulbs has fallen sharply, accelerating the application of LED lighting. At present, the LED epitaxial plant in the upper reaches has appeared the phenomenon of capacity exclusion. The LED industry has entered the peak season from the second quarter and will be better in the third quarter, plus foreign countries. LED stock Cree's share price hit record highs, attracting foreign investors to actively cover Taiwan's LED indicator stocks. In the last ten days, foreign investors bought 16,454 super-chips and bought 5,408 pieces of super-billion light.

In the fourth quarter of last year, the price of LED die dropped sharply. In the first quarter of this year, the price was still low, and the traditional low season of the industry made LED epitaxy plants in the upstream, including Jingdian, Yuyuan, New Century, Taigu and Hua Shang, all lose money. The downstream packaging factories also have only a few manufacturers such as Yiguang, Dongbei Optoelectronics, Huaxing, and Lunda to make money.

However, most manufacturers will begin to make money in the second quarter. Dongbei Electric Chairman Wu Qinghui commented on the operation of the LED plant in the second quarter with the “end of the era that everyone lost money”.

Wu Qinghui said that in the LED lighting part, this year's TV penetration rate is higher, and in the LED lighting, the past one LED light bulb NT$499 NT (the same below), now 200 yuan can buy the full week of LED Light bulbs, cost-effective to allow consumers to greatly increase acceptance, accelerate the prevalence of LED lighting, LED factory profits this year will greatly improve.

Wu Qinghui stressed that in the second quarter of this year, the outside world will see a lot of progress in LED factory profit, mainly due to two major reasons: First, the current price of LED die is at the bottom of the valley, and the space for further decline is limited. The second is the current upstream LED. Epitaxial plants have all reported full production capacity, which makes the industrial order better. East Bay first quarter EPS is 0.28 yuan, after the LED packaging plant profits only after billion light, Dongbei photoelectric second quarter revenue is expected to grow 30% than the first quarter, the third quarter than the second quarter growth two to Three percent.

Zhang Shixian, deputy general manager and spokesperson for Jingdian Electronics, said that Jingdian’s orders in May were better than those in April. The gross profit rate in the second quarter was also relatively high. Jingdian definitely made money, but it was only a question of how much it earned.