Everlight Electronics Co (億光) and Epistar Corp (晶電) are expected to perform better in the second half of this year, driven by improving demand for LED lighting products and infrared applications, analysts said.
“We estimate Everlight will see 10 percent annual growth in revenue in the second half of this year, as all of its product lines are seeing better demand from a year ago,” Credit Suisse Group AG analyst Derrick Yang (楊泓極) said in a note on Wednesday last week.
Yang’s forecast came after Everlight, the nation’s leading LED chip packager and lighting products provider, reported annual growth of 1.13 percent in its second-quarter revenue to NT$7.13 billion (US$222.88 million).
On a quarterly basis, revenue climbed 2.58 percent from the previous quarter’s NT$6.96 billion, according to the company’s filing with the Taiwan Stock Exchange.
Yang attributed the revenue growth to Everlight’s better-than-expected sales of LED consumer lighting products and growing demand for high-margin infrared applications.
Everlight’s growth momentum will extend to the second half of this year on the back of the robust outlook for the company’s general lighting and backlight units and infrared applications, Yang said in the note.
China’s national holiday in October is also expected to boost demand for TVs, lifting sales of Everlight’s backlight units used in TVs, SinoPac Securities Co (永豐金證券) said in a separate note last week.
In addition, the Christmas holiday season might lend support to shipments of Everlight’s backlight units and LED flashes used in smartphones to the European and US markets in the fourth quarter, SinoPac analyst Hsiao Ho-shun (蕭合順) said in a note on Tuesday.
Epistar, the leading LED chipmaker, might post a double-digit percentage increase in revenue from NT$6.55 billion last quarter to NT$7.53 billion this quarter, supported by solid demand for LED lighting chips and LED four-element products, such as infrared applications, Yang said.
The company’s efforts to reduce operational costs and develop a better product portfolio will also help improve its gross margin from about 8.7 percent last quarter to 12.7 percent this quarter, Yang said.
At the company’s annual general meeting on June 17, Epistar said it has built alliances with LED component makers to provide semi-module products, while avoiding direct competition with Chinese peers.
As the company has built an intellectual property portfolio of 1,794 patents through self-developed technologies and cross-licensing, the combination of its portfolio and vertical integration in the industry might help the company to target US customers and poses a solution to grow its business amid intensifying competition from Chinese peers led by Sanan Optoelectronics Co (三安光電), analysts at Macquarie Capital Securities Ltd’s Taiwan branch said in a report last month.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
United Microelectronics Corp (UMC, 聯電) forecast that its wafer shipments this quarter would grow up to 7 percent sequentially and the factory utilization rate would rise to 75 percent, indicating that customers did not alter their ordering behavior due to the US President Donald Trump’s capricious US tariff policies. However, the uncertainty about US tariffs has weighed on the chipmaker’s business visibility for the second half of this year, UMC chief financial officer Liu Chi-tung (劉啟東) said at an online earnings conference yesterday. “Although the escalating trade tensions and global tariff policies have increased uncertainty in the semiconductor industry, we have not
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
RSS