Two leading crystal power, billion light in the first half were record

Led first half of manufacturers to deliver good transcripts! Two leading crystal electric billion light, have hit a record high, 3.5 yuan, 3.37 yuan EPS respectively. Foreign Morgan Stanley Securities to give crystal electric overweight rating, target price of 130 yuan; billion light current orders visibility of about 1 months, it is estimated that in August revenue will be flat with a relatively high in July. Corporate estimates, although the market doubts about LED, but the stock has been pile up in excess of requirement, after finishing the second half performance collocation not bearish, the stock market outlook should be steady.

Billion in the first half net profit of 1 billion 560 million yuan, net profit after tax of $1 billion 406 million, an increase of more than 1 times, EPS $3.37, compared to $1.73 last year. Among them, the second quarter net profit after tax of $865 million, up by nearly 6 quarter, EPS2.07 yuan, are better than market expectations. In the third quarter, although facing panel factory inventory adjustments, but expected the company's overall operating performance is still maintained about second Ji Shuiping, even if a recession does not exceed 10%; as for the fourth quarter of the visibility is not high, but there are opportunities in the mainland of the lunar year demand stimulus, performance is another peak in 10 and November.

Crystal electricity second quarter gross profit margin of up to 39%, net profit after tax of $1 billion 690 million, a single quarter EPS up to $2.2, the cumulative net profit of $2 billion 690 million in the first half of the tax, EPS reached $3.5, also better than market expectations.

The recent panel industry channel inventory correction intensifies, Korean panel factory cut LED supplier orders, inventory reduction in the layers under the pressure of domestic epitaxial plant had to step up to attack LED lighting and other application opportunities; crystal electric adjustment of product mix, high margin steering applications, such as large size panel backlight, lighting and so on. The profit continued to perform better than the market expected, plus the LED backlight LCD TV in the second half of the year from the first half of the permeability, 10%-15%, accelerate to 25%-30%, therefore, expected in the fourth quarter LED market will significantly improve the atmosphere.