In the third quarter of the LED packaging faucet factory, the revenue of the third quarter increased by 7%, but the business profit decreased by 3% compared with the previous quarter. Foreign brokers said that this year's performance was arguably disappointing when the overall LED industry was unstable and ASP continued to decline and costs were not reduced. However, next year, the industry is expected to stabilize, and the company has taken the lead in the pre-emptive layout of TV backlights, and the general lighting orders are expected to increase, etc., it is expected that the proportion of revenues of backlights and lighting products will increase. The profitability performance is worth looking forward to.
Foreign brokers estimate that Everlight will expand its production by 30% next year, and the product mix will be effectively improved. Among them, the proportion of general lighting package products with the highest gross profit margin will increase from 5% this year to over the next year. The proportion of 10%, which is also the revenue of high-margin backlight products, can increase from 24% this year to 24% next year, which will effectively increase the company's revenue and revenue performance.
In the third quarter of this year, Everlight's gross profit margin and profit margin were only 23.34% and 12.15%, respectively, which fell by 5 and more than 1 percentage point from the previous quarter, which was lower than market expectations. The company said that the low single-quarter profit margin was mainly due to poor product mix and low capacity utilization. Foreign-funded brokers believe that the key to lowering the interest rate of Yiguang in a single season should be that while the product ASP is falling, the price of LED chips is still relatively strong, causing pressure on production costs. Foreign capital pointed out that the third quarter of the company's revenue in the third quarter increased by 7%, but the shipments actually have about double-digit growth.
Foreign brokers believe that the gross profit margin of Yiguang this year has dropped by 2.5~3 percentage points compared with last year. This performance is quite different from the situation in which crystal power or interest rate has grown by more than 10 percentage points. The key to this phenomenon is that the situation of Yiguang's turn to high-margin products is not as good as expected.
Foreign brokers expect that under the influence of the continued decline in LED packaging products ASP, the gross profit margin of Everlight in the fourth quarter will fall by 3 percentage points from the previous quarter; however, as manufacturers negotiate with LED chip manufacturers and the first quarter of next year Market demand is expected to pick up, which will lead to an increase in capacity utilization. The decline in ASP of Enlighten package products will slow down, and the gross profit margin is expected to gradually pick up.
It is understood that Yiguang's product mix this year is a lighting package product with a ratio of only 5% and a gross profit margin of 37~42%; display package products with revenue accounting for about 10% and gross profit margin of 37~42%; Backlight package products with revenue accounting for about 16% and gross margin of 35~40%; mobile phone package products with revenue accounting for 35% and gross profit margin of 20~25%; revenue accounting for 34% and gross profit margin only 15~ 20% of others.
Looking forward to the performance of Yiguang next year, foreign brokers believe that the price of LED packaging will be stable next year compared to 2010, and the product mix will be better (lighting revenue increased to 10%, revenue increased to 24%), capacity utilization Driven by relative stability, it is expected that the gross profit margin of Yiguang will increase by 2%. The overall profit is expected to increase by 17% and EPS will reach 6.75 yuan.
Foreign-funded brokers stressed that under the premise that the overall LED industry will stabilize, the cost of LED package products and chips will decline simultaneously next year (and will not show the decline of package ASP in the second half of this year, but the price of chips is still relatively high). It is estimated that the package and chip ASP will fall by about 3 to 5% per quarter.
In addition, foreign brokers pointed out that Everlight's current SMD capacity is 1.85 billion units per quarter, up from 1.2 to 1.3 billion at the beginning of the year. Due to the uncertain outlook of the LED industry, the company has not yet decided to expand its production plan for the next year. The legal person estimates that Yiguang may expand its production capacity by about 30% next year, driving the annual revenue to grow by 25%.
In addition, in June this year, Everlight invested a total of 25 million US dollars with Jingdian, the world's largest LCD monitors assembly plant TPV (TPV), and held a 65% stake in Yiguang. In the same month, Yiguang announced another agreement with LGD. Ruixuan invested 30 million US dollars in LED packaging plants, and Everlight held 60% of its shares. As Ruixuan is the assembly plant of Vizio, the plant capacity is expected to be planned for Vizio TV products. Foreign-funded brokers are optimistic that the demand for TV backlight products will recover significantly next year. I believe that Everlight will take the card position in this market and will gain market opportunities for the company next year.
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