Guang Bao branch adjusts product mix, Q4 gains or turns better, next year business sees growth.

Since the beginning of this year, the company has been involved in the loss making business. It includes the mobile phone industry portable video business unit (CCM) and its portable office parts department. The legal person estimates that after the loss of the business, with the continuous improvement of the product mix, it is expected that the profits will turn better in the fourth quarter. The net profit per share is expected to exceed that of last year and the challenge is nearly 3 yuan per year. (New Taiwan dollar, same below) level.

The first quarter of the 3 quarter began to no longer recognize CCM revenue, but benefited from the other products entering the peak season, encouraging revenue to come to 53 billion 390 million yuan, quarterly decrease 2.4%, annual reduction 4.6%, slightly better than expected. As new products are reacted, the cost of components will rise, and CCM will no longer be recognized, which will help the products mix better, and the expected profit will grow.

Looking forward to the fourth quarter, as the announcement of early September, the sale of its portable device unit to mainland company Toptouch (Star Technology) is expected to be completed in the early September. It is expected that the delivery will be completed this quarter. Although the revenue will affect 2~3%, the demand for outdoor lighting and non PC power is still in demand.

The legal person pointed out that the portable institutional unit would not be of scale benefit and would be in deficit for a long time. After the sale, the product mix will continue to improve. It is expected that the net profit after tax in the fourth quarter will be higher than that in the last quarter, but the profit will continue to turn better than the same period last year.

Looking forward to the whole year, although information products and storage products are growing slightly due to the increase of non PC power supply and the ease of Nand Flash shortage, the expected revenue will decline compared with last year due to the gradual loss of business, but after losing the business, the expected profit structure will be improved, driving the net profit growth after tax. The surplus challenge is nearly 3 yuan, surpassing last year's level.

The combined revenue in September was 19 billion 298 million yuan, excluding the transfer of mobile camera module business. In September, its revenue grew by 4% and 5% annually, hitting a record high in two years. Benefiting from the core business, the demand for terminal market is stable, with a total revenue of 156 billion 620 million yuan in September.

Guang Bao branch pointed out that the photoelectric sector accounted for 14% of the total revenue in September, of which, the market demand for the invisible LED continued to grow and the market share of LED components was expanded. Thanks to the smooth delivery of LED vehicle lighting, the revenue of the optoelectronic sector increased by nearly 10%.

The information product department accounted for 63% of the revenue. Among them, benefiting from the continuous growth of cloud computing high level servers, Netcom power management system and AI smart home appliances, and the increase of the market share of computer peripheral products such as keyboard and mouse, the revenue of information production department increased by 10% annually.

Looking forward to 2019, the company is optimistic about the main businesses including optoelectronics, information products, storage products and so on, and is expected to maintain stable growth trend. In particular, the development of automotive, smart home, industrial automation, cloud, LED (invisible light and outdoor lighting, etc.) application products.

Among them, the vehicle lens module has been mass-produced in 2018, and is expected to have a chance to enter the first car factory supply chain in 2019. Including invisible light, LED vehicle lighting and outdoor lighting (street lighting) product line is also expected to maintain the growth rate of two digits. Cloud computing high level servers, Netcom devices and high-powered power supply products, smart home appliances and so on are also expected to grow steadily. SSD is also accelerating the replacement of traditional hard disk drive HDD in various applications.

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