LED market off-season, falling price double pressure Lunda Q4 revenue first fight flat1

LED big factory Lunda Electronics following this year's 3- Revenue continued to rise in August, with initial estimates of a slight increase in September and an overall third-quarter revenue estimate of nearly 42-4. 3 billion yuan (New Taiwan dollar, the same below), Quarterly increase of 10- 15. The annual increase is estimated at 15, and the earnings per share in a single quarter are estimated at about 0. 4 yuan, EPS estimated to be nearly 0 in the first three quarters. 8 yuan. Although the prospects for LED lighting are still pretty, the strategic alliance between Lunda and Cree will also help to add momentum to the long-term operation. However, with the coming of the off-season and the decline in LED prices, the fourth quarter will be flat. Longda is a large LED factory under BenQ AUO group. The product process is produced and supplied from LED grain to LED packaging in a one-stop vertical integration mode. The production base is located in Hsinchu, Taiwan and Suzhou, mainland China. About 70% is applied to backlight and 30% is applied to lighting. The original AUO shares 14. 6. Conley investment holds nearly 4. 9. Longli investment is about 6. 4, jiashida about 1. 4, but the company in late August 2014 and the United States big Factory Cree (Cree, Inc. ) A strategic alliance agreement was reached, and Cree will invest 83 million US dollars to acquire 83 million shares of Lunda and hold 13 shares of Lunda through private equity investment in Lunda, becoming one of the major shareholders of Lunda. it is expected to complete the shareholding before the end of 2014 and obtain one director in 2015. Lunda can also obtain patent authorization related to LED grains and components of Cree. Although the initial content of this strategic alliance between Cree and lunda is mainly blue LED grain supply, and mainly medium power products, Cree also has LED packaging plants in China. however, due to Lunda's own packaging capacity and technical capabilities, it is speculated that Lunda will also have the opportunity to become a Cree packaging partner in the future, adding long-term stability to the operation. In the early days, Lunda's main source of orders was once concentrated on AUO group customers. Through the company's active expansion of customers, the proportion of AUO group customers has dropped to nearly 50% in 2014. With Cree's shareholding, it is expected that the proportion of AUO group's customer revenue may further decline from 2015, and the customer structure is expected to become more sound. In line with business expansion, Lunda successively expanded LED packaging capacity in the first half of 2014, with an expansion rate of about. In August of the same year, he bought a zhunan land factory from AUO, with a land area of 26101 square meters (About 7896 ping), The total area of the plant is 51094 square meters (About 15456 ping) It is expected to install in the fourth quarter of 2014 and complete the expansion in the first half of 2015. In the initial stage, the packaging capacity will be the mainstay, and the upstream epitaxial/grain will be expanded in the future, but the actual number of expansion units has not yet been announced. Lunda's combined revenue in the second quarter of this year was 37. 0. 9 billion yuan, a quarter increase of 17. 7. Annual increase of about 2. 5, gross profit margin 14. 5, single-season business benefits about 2. 1. 9 billion yuan, net profit after tax is 1. 6. 8 billion yuan, earnings per share is 0. 32 yuan, cumulative revenue in the first half of 2014 was 70. 0. 2 billion yuan, an annual increase of 4. 2 The first half after-tax net profit about 1. 9. 4 billion yuan, EPS is 0. 37 yuan, lower than the same period last year (1. 49 yuan) The main reason is that in the same period last year, it recognized the merger and purchase profits from the Power Alliance. The profit performance of the industry is generally stable. With the expansion of production capacity and the growth of orders, Lunda's revenue has continued to rise moderately since the third quarter of this year, and its revenue in August has reached 14. 1. 9 billion yuan, monthly increase of 0. 3, an annual increase of 14. 7, it is estimated that September may be flat or moderate growth, and the third quarter revenue is estimated to be nearly 42-4. 3 billion yuan, with a quarterly increase of 10- 15. The annual increase is estimated at 15, and the earnings per share in a single quarter are estimated at about 0. 4 yuan, EPS estimated to be nearly 0 in the first three quarters. 8 yuan. Originally, the company expected a moderate increase in revenue in the fourth quarter. However, with the advent of the off-season, the pressure of LED price decline has increased. At present, the company aims to fight for the fourth quarter revenue. Revenue in 2014 has the opportunity to challenge 15 billion yuan, with an annual increase of 5-10, the earnings per share is estimated to be close to 1 yuan.