LED bad market + busy season effect is insufficient, the performance of Q3 is not as good as expected.

Taiwan LED chip factory Guang Lei this year, 8 and September revenue continued to decline, the overall third quarter revenue came to 1 billion 404 million yuan (NT $, the same below), quarter increased 1.18%, an annual increase of 0.96%, the cumulative three quarter revenue of about 41 billion yuan, an annual reduction of 5.7%, the peak season performance is not as good as expected. The main reason is that the poor market condition of LED has affected the performance of light-emitting devices. Not only the price of blue light LED is pressure, but also the market of infrared products is also affected. As for sensors, they are still growing under new capacity.

Looking forward to the fourth quarter, although demand for sensing components and infrared products is relatively stable, due to the fact that time series has entered the traditional off-season of light emitting components, it is expected that the fourth quarter revenue will still cool down. As for the gross profit margin in the second half of this year, there will be an opportunity to outperform the first half of the year after the change of the product mix.

In response to the growth of the component orders, the first phase of the 10% expansion was followed by the end of 2017. In 2018, the capacity of the sensing element was extended. The new production line has also been put into operation from the second quarter to the third quarter of this year. Among them, Zener Diode zener diode because of the stable industrial situation and few new entries, currently accounts for more than 3 of the sensor components.

By the end of this year, the proportion of sensor components to revenue can be increased to more than 5, and the proportion of light-emitting components will be reduced to about 3, and another 2 will come from products such as display systems. Among them, infrared products account for about 6 of the luminous element LED.

Influenced by factors such as LED price pressure and product mix adjustment and the demand adjustment of mainland display, Guang Lei declined in the first half of this year, and the gross profit margin was flat. Business interests declined, but the exchange earnings were recognized outside the industry, plus capital loss after capital reduction. In the first half of this year, the earnings per share were 0.7 yuan, or an annual increase of 8%. As the third quarter revenue is not as good as expected, the legal person estimated that the third quarter will be flat.

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