LEDs entered the traditional off-season, and the packaging factories Dongbei, Ronda, and Edison lacked kinetic energy. In October, revenues increased or decreased slightly from September. Dongbei said that as mainland TV customers get the next wave of home appliance subsidies, the fourth-quarter backlight orders will gradually be returned, and Ronda continues to cultivate mainland direct-lit backlight TV sets.
The demand for TV in mainland China is sluggish, and the impact on LED packaging factories in Taiwan is mixed. Dongbei's October revenue of 530 million Taiwan dollars (the same below), a monthly increase of 3.31%; Longda 1.059 billion yuan, a monthly reduction of 7.02%; Edison 218 million yuan, a monthly reduction of 7.23%. If compared with the same period of last year, Dongbei was reduced by nearly 40%, mainly because the backlight accounted for a higher proportion of revenue, and the impact of the end of home appliance subsidies was larger.
In contrast, Edison, who specializes in high-power packaging, has been hit by the lighting market and has not been hit by the sluggish demand for TV. In October, revenues increased by 35% compared with the same period last year. LED vertical integration plant Ronda was able to grow 24% in October compared to the same period last year due to the merger of the Power League effect.
Ronda said that the traditional off-season of LED backlighting in the fourth quarter, TV application demand is relatively weak; in lighting applications, in response to the decline in profits caused by the decline in market prices, Ronda has moved a large number of lighting assembly lines to the mainland, and through Ronda Its own vertical integration advantages reduce costs.
Dongbei pointed out that the inventory adjustment of mainland TV customers has temporarily ended in the third quarter, so Dongbei's revenue bottomed out in September and began to grow slightly in October. The fourth quarter revenue will grow month by month. Mainly because the backlight orders have signs of slow return, and the new backlight package products developed by Dongbei are also expected to increase market share.
In the lighting sector, European and American countries gradually banned incandescent lamps and provided energy-saving subsidies. Dongbei's lighting customers increased their orders in the fourth quarter, resulting in lighting accounting for more than 25% of October revenue. At present, Dongbei's monthly revenue is significantly lower than that of the same period of last year. Dongbei is expected to return to the performance of last year after December.
Edison said that LED lighting has entered the traditional off-season, and orders for European and American Christmas holidays have been shipped, so customers are not actively pulling goods.
As the LED lighting market presents price-cutting competition, customers are waiting to see if there is a lower price, so the short list is short, and the order visibility is only about one month. However, Edison is optimistic about LED lighting. This year, he has invested 450 million yuan to expand cross-strait capacity in order to meet the demand for orders next year.
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