LED Packager Everlight Predicted to be Most Profitable Again in 2015

Industry executives predict Everlight Electronics Co., Ltd., reportedly the world's No.1 LED packager by volume, to make at least NT$6 per share in after-tax net income on projected revenue of NT$35-36 billion (US$1.12-1.16 billion) this year, making it Taiwan's most profitable LED maker for another year, with such optimistic forecast based mostly on corporate development and trends.

In Q1, 2015, corporate sales are projected to contract only 5-10 percent year on year, the slowest first-quarter decline in its corporate history. The slowdown is due to the de-stocking cycle that was almost completed in the first quarter throughout the supply chain, with the traditional high season for LED backlight to begin March.

Also its revenue of NT$8.17 billion (US$263.70 million) for Q4, 2014 slumped only 4.7 percent from a quarter earlier, far better than the 10 percent recession rate projected by the market.

Throughout 2014, the company had consolidated revenue of NT$30.61 billion (US$987.48 million), increasing 16.12 percent from the previous year, with EPS estimated at NT$5 or so.

Company chairman, Robert Yeh, predicts the car market will emerge as the biggest for LEDs, which now account for less than 5 percent of the company's revenue.

The company's product line is quite diversified, with LED backlights and LED lighting together constituting barely 40 percent of revenue, automotive LEDs less than 5 percent, LED displays 10 percent and infrared LEDs and other applications making up the rest.

(KL)