LED chip factory TV backlight sources have entered the stage of inventory adjustment, which has led to a synchronized decline in the revenue of Epistar, Canyuan, New Century and other factories in August. The revenue decline ranged from 7 to 12%. However, the industry regards this as a normal seasonal off-season. The industry said that the distribution effect of new brand TV products has been reflected at the beginning of the year. Next, it depends on the Sell Through (sold out rate) of the brand TV to determine how long the adjustment time will be.
According to statistics, Epistar’s TV backlight revenue accounts for about 40%, and New Century’s revenue accounts for about 20%. The proportion is not low. Even if LED lighting shows stable growth, various manufacturers are actively increasing the proportion of LED lighting at this time, hoping to support the declining part of TV backlight sources. However, it is still difficult to beat the seasonal decline of TV backlight sources. In addition, the comparison base period of chip factories in the second quarter is already high, and chip factories may show a 10% decline in the third quarter.
However, industry players also pointed out that the fourth quarter of previous years has entered the traditional off-season, with revenue declining by about 10-15%. The early revision of the third quarter this year should weaken the off-season effect in the fourth quarter, and the quarterly revenue decline is expected to be lower than in previous years.
The operations of LED packaging plants in the third quarter are decoupled from the chip factories. Looking at Everlight, whose revenue in August hit a record high in February consecutively, the legal person estimates that Everlight's revenue in the third quarter is expected to grow by 6 to 8%. Based on this calculation, Everlight's revenue in the third quarter will reach 8.1 to 8.25 billion yuan, continuing to hit a record high, and revenue will remain on a steady growth track.
The legal person pointed out that the backlight correction of Everlight in the third quarter is not as large as that of Epistar. The main reason is that the customer base is different. Epistar mostly ships to Korean backlight factories. Everlight's main customers are in mainland China. Mainland backlights have been revised downwards since May Day. There is still room for downward correction in September, but new models will also start to be shipped from October. Therefore, Everlight's backlights in the fourth quarter are similar to those in the third quarter.
In addition to Everlight, the third-quarter revenue of Dongbei and Lextar is expected to hit a high simultaneously. The third-quarter operation of packaging plants is better than that of LED chip plants.
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