LED giant Fucai Investment and Control will benefit from the expansion of the MiniLED market next year’s penetration rate and the increase in demand, and its performance is expected to continue to grow. Revenue and profit will have the opportunity to significantly increase compared with this year. It will become the largest beneficiary of the development of the MiniLED industry.
The latest report issued by a legal person in Taiwan pointed out that next year, the penetration rate of MiniLED in the three major applications of flat panel, TV, and laptop will further expand. To maintain its leading position in the industry, Fucai is also actively planning to expand production, and new products from customers will be expanded throughout the year. Stable shipments and boosting related revenue contribution are expected to increase by 50% annually.
The legal person said that the fourth quarter of this year was affected by the low season of the industry and the lack of materials. It is estimated that Fucai's operating performance will be revised from the third quarter, but it will return to the growth trajectory from next year, and the capacity utilization rate will also increase quarter by quarter. Order visibility will be pretty good for half a year.
In addition, after Apple’s laptops switched to MiniLED in the third quarter of this year, Fucai plans to expand its annual production capacity by nearly 20% to 1.2 million units by the end of this year in order to meet the needs of major customers. The quarterly increase in digits accounts for about 30% of Jingdian’s revenue.
In other application areas, although the sales of related products have declined slightly due to the lack of other key components, the overall demand for automotive displays has been strong, which has prompted Jingdian to slowly expand its high-end red light production capacity to nearly 20% annually. Due to the high unit price of the product and the better gross profit margin, the revenue and product portfolio continued to be optimized.
Looking ahead to the MiniLED market, Fortune’s Chairman Li Bingjie once pointed out that next year’s MiniLED market demand should grow multiples of this year, and the problem of insufficient capacity will be much more serious than imagined by overcapacity. The main market demand comes from TVs, tablets and laptops. Fucai will also make every effort to expand production to meet customer needs.
It is reported that Fucai has internally planned the expansion of its plants on both sides of the strait next year, and it is estimated that next year’s MiniLED production capacity will double this year; among them, the expansion of production in Taiwan next year may be biased towards IT products, and there may be TV-related production capacity in mainland China.
For the first three quarters of this year, the net profit per share was 2.56 yuan (NTD, the same below), which turned a loss to profit from a net loss of 6.5 yuan per share in the same period last year. The legal person estimates that next year's Fucai revenue will be about 42.01 billion yuan, an annual increase of 15.5%, and the after-tax net profit will be 2.88 billion yuan, an annual increase of 33.1%, and the net profit per share will be 4.2 yuan.
