The LED packaging factory Hongqi has recently been affected by factors such as the lack of materials in other parts of the supply chain, which has led to the adjustment of the customer’s procurement schedule, as well as the changes in the market demand for IT products after the unsealing of Europe and the United States. The peak season in the second half of 2021 will not be prosperous. Revenue fell slightly, and revenue in the fourth quarter further cooled.
Cumulative revenue for the first 11 months was approximately 2.79 billion yuan (NTD, the same below), still an annual increase of 22.78%, of which the earnings per share for the first three quarters was approximately 1.53 yuan. It is estimated that the annual revenue will fall near 3 billion yuan, which may be a new high in the past 4-6 years, and EPS also has the opportunity to challenge the new high of band profit in the past 7 years or more than 10 years.
Looking forward to 2022, Hongqi said that the company's outlook is optimistic. The main momentum comes from MiniLED and infrared IR LED related product orders and shipments are expected to continue to grow. In addition, Hongqi has also actively invested in IC packaging in conjunction with its related company Jiuyuan, with the goal of heavy shipments in the first quarter of 2022.
At present, Hongqi has launched MiniLED series products for the two major applications of display and backlight, including 4 in 1 Mini LED, Local dimming Mini LED (regional dimming) and so on. MiniLED will account for less than 5% of overall revenue in 2021. It is expected In 2022, multiples may increase.
Infrared IR LEDs benefited from market demand for wearables, smart networked devices, home appliances, security control, automotive and other markets. Shipments in 2021 will grow strongly, and currently account for 15%-20% of Hongqi’s revenue, which is an increase from 2020. . It is estimated that the IR LED business will continue to grow in 2022, and the number of customers for products used in AR devices is also expected to increase.
