Projection Module Factory Yang Ming Optics 2018 years in the last half return profit, surplus of 0.5 yuan per share, looking forward to the second half, Yangming that the mainland's demand for screen TV continued to explode, will drive the micro-projection module in the second half of the revenue accounted for a significant increase to 65~70%, and smart home application of the safety control lens will enter the shipping season, Niche products such as shelf display, 3D printing and other shipments in the second half of the stable, the overall order visibility will reach 2 months ~ half a year, the second half of the expected revenue will be more than the first half of about 50% of the growth kinetic energy. Yangming General Manager Xu Zhihong pointed out that the current capacity utilization rates are maintained in high-end, the second half will continue to expand capacity, especially for the global market are out of stock of key 0 components, including glass lenses, glass, etc., 2018 years of investment in the expansion of the capital expenditure of about 200 million yuan, estimated in the second half will be put into 2~2.5 billion, New capacity is expected to be operational in the 3rd quarter of 2019, and will continue to invest in the expansion in 2019, considering demand trends and supply shortages. In response to the recent tense U.S.-China trade situation, Xu Zhihong said that the current direct shipments to the United States glass lens product proportion is very small, so the impact is very limited, plus the company has been in 2012 years to build a factory in Bangladesh, but recently received a lot of customer transfer orders, so the positive view of the trade war on the impact of the single, but the capacity of , there is no excess capacity available for sale in the short term. He further pointed out that the current shortage of glass lenses and molded glass, mainly from the recent years in the automotive market growth, the future will be able to alleviate the shortage still to be observed. In the case of each product, Yang Ming second half of the main growth kinetic energy will come from the rapid increase in micro-projection products, compared to the first half of the micro-projection products accounted for 56%, in the overall revenue to maintain a strong growth, the second half of the revenue accounted for 65~75%, the average product ASP about 150 U.S. dollars. As the proportion of micro-projection is increasing, the projection optical product will fall in 10~12%, the proportion of optical products is 10~12%, and the proportion of industrial optical module is about 12~14%. Xu Zhihong said that the micro-projection products are mainly used in the mainland's no screen TV market, the initial estimate of 2018 overall market growth of about 30%, compared with the 2018 upper half of the micro-projection revenue growth of 60%, the company's growth is better than the overall market average. If the number of major customers announced recently, the 1th quarter of the mainland's overall micro-projection market share of 70%, while the Yangming supply accounted for about 90% of the proportion of its customers, by this projection, the equivalent of the overall rate of the city accounted for 60%. However, the micro-projection market still has a murmur, Xu Zhihong that the recent depreciation trend of the renminbi has brought pressure on customer costs, on the other hand, the production of supply-side capacity is limited, although the second half of the demand is buoyant, but whether to meet market demand, as well as the end of the demand is still For the smart home and safety control lens part, Yangming said that the second half of the traditional shipping season, the recent see customer stock strength clear, as for niche products, including shelf display and 3D printer in 2017 almost no performance contribution, but the second half of the shipment is expected to stabilize. Unmanned stores and intelligent stores to import trends in the hidden formation, Yangming and the United States ranked the 2nd largest retail industry Kroger (Kroger) long-term cooperative development, making the shelf display shipments of energy attention. Xu Zhihong said that the 2018 shelf display of the year's annual delivery target is still maintained at the beginning of the forecast, because the shelves display products mainly supply only to the United States and a single customer, and customers to provide the overall solution, the expected shelf display of the annual revenue share of about 5~10%. In terms of gross profit, Xu Zhihong points out that industrial optical module, the second projection 0 components, followed by intelligent home and micro-projection optics, although the micro-projection optical gross margin is the lowest, but the largest contribution to the product line, although the micro-projection module shipments, will lead to average gross profit decline, but the second half of the good rate of improvement and production capacity Will hopefully bring about a cost-reduction benefit.
