Mon, Mar 19, 2018 - Page 16 News List

Radiant shares outperform market by 5%

By Chen Cheng-hui  /  Staff reporter

Radiant Opto-Electronics Corp (瑞儀光電) has seen its shares outperform the broader market by about 5 percent since the beginning of this year, reflecting investors’ expectations of a less expensive 6.1-inch LCD iPhone that is to be launched in the second half of the year by Apple Inc, Yuanta Securities Investment Consulting Co (元大投顧) said.

The 6.1-inch iPhone expected in the third quarter would help increase the proportion of LCD iPhone models and therefore lessen investors’ concerns over the technology replacement risk from the introduction of organic LED (OLED) iPhones, Yuanta analyst Steve Huang (黃柏璁) said in a note on Friday last week.

Radiant, which counts Apple among its major clients, is a leading supplier of LCD backlight modules used in various applications, such as smartphones, tablets, notebook computers and TVs.

Amid Apple’s intention to adopt OLED screens for its products, uncertainty about orders of LCD-based models remains a long-term challenge for Radiant, Huang said.

Shares in Radiant closed 0.66 percent higher at NT$76.6 on Friday in Taipei trading.

They have increased 8.35 percent this year, compared with the broader market’s 3.62 percent rise, Taiwan Stock Exchange data showed.

The company on Friday reported gross margin of 14.1 percent and operating margin of 8.6 percent for the final quarter of last year, with earnings per share (EPS) of NT$1.71, lower than the NT$2.2 for the same period a year earlier due to non-operating losses of NT$203 million.

Yuanta forecast that the company’s revenue for this quarter would decline 18 percent from last quarter’s NT$14.78 billion, and that EPS would drop 13 percent to NT$1.5.

Although it is not yet known how many new OLED iPhones Apple is to introduce later this year, OLED is set to become the mainstream display technology, suggesting that Radiant needs to generate revenue from other sources, analysts added.

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