Mon, Mar 10, 2014 - Page 14 News List

Parade expected to see a strong recovery: Yuanta

By Kevin Chen  /  Staff reporter

Parade Technologies Ltd (譜瑞), which is the sole supplier of embedded DisplayPort solutions for Apple Inc’s iPad Air and iPad Mini, is expected to see a strong revenue recovery this month, after last month’s sales fell to their lowest level in seven months, Yuanta Securities Corp (元大證券) said on Friday.

For this quarter, the company’s sales performance may also fare much better than its peers in the iPad supply chain, as its embedded DisplayPort solutions are being used more in non-Apple notebook PCs and tablets, Yuanta analyst Steve Huang (黃柏璁) said in a research note.

Huang’s remarks came after Parade released its revenue data for last month after the local stock market’s close on Thursday, showing consolidated sales hitting NT$330.4 million (US$10.9 million), down 39.84 percent month-on-month but up 61.58 percent year-on-year, according to the company’s filing with the Taiwan Stock Exchange.

GUIDANCE

Huang said Parade could easily beat its first-quarter sales guidance of declining by between 17 percent and 25 percent from NT$1.61 billion last quarter — or within a range of between NT$1.21 billion and NT$1.33 billion, given that it has posted combined sales of NT$879.62 million for the past two months.

The company’s shares rose 4.39 percent to end at NT$261.5 on Friday on the GRETAI Securities Market.

The GRETAI index declined 1.61 percent.

“Unlike most of the iPad display component suppliers in Taiwan — such as Radiant (瑞儀) and TPK (宸鴻) — that guided first-quarter sales to decline 30 percent to 40 percent quarter-on-quarter, Parade’s first-quarter sales performance appears stronger in the iPad display food chain,” Huang said in a research note.

“We attribute this strength to the rising embedded DisplayPort penetration rate quarter after quarter across iPad, MacBook and non-Apple NB, allowing it to be less subject to Apple’s product seasonality,” Huang said.

SUPPLY CHAIN

Radiant Opto-Electronics Corp, a LCD backlight supplier, saw its sales for last month contracted by 38.66 percent from January to the lowest level in four years at NT$3.399 billion, while touchpanel maker TPK Holdings Co’s sales fell by 39.4 percent month-on-month to NT$7.03 billion, the lowest level in three years, according to the companies’ separate stock exchange filings issued last week.

Yuanta said Parade’s sales for this month could grow by between 20 percent and 30 percent to surpass the NT$400 million from last month, thanks to the absence of seasonal factors distorted by the timing of the Lunar New Year holiday.

Parade is based in Taipei’s Neihu District (內湖).

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