Fu-Cai: MicroLED technology is gradually being introduced into the end-user market and is expected to contribute to revenue this year.

LED giant FCI Technology expects its revenue from sensing and lighting businesses to decline slightly in the first quarter due to the off-season. However, demand for backlight products is expected to see a higher single-digit quarter-on-quarter growth. Revenue from automotive products is also expected to decline slightly in the first quarter, but demand for backlight products is expected to see a higher single-digit quarter-on-quarter growth. Revenue from automotive products is also expected to see a near double-digit growth in the first quarter. As the peak season gradually approaches and the proportion of value-added products increases, the overall outlook for all businesses this year is relatively optimistic.

Regarding Fuchai's sensing business, the growth of the wearable device and notebook application market was limited this year. However, with the successful introduction of new products by customers and the contribution of new customers to the volume, the full-year revenue of the sensing business is optimistic. In the future, we can also look forward to new application areas of wearable products, such as blood pressure and blood sugar measurement, and the demand for notebook sensing applications driven by AI PCs.

Regarding the special lighting business, the first quarter is typically the off-season for lighting, resulting in a slight quarter-on-quarter decrease in revenue. However, new industrial lighting projects will contribute to revenue throughout the year, and plant lighting is also showing steady growth. Overall, the special lighting business is expected to maintain stable growth for the year. As for display boards, first-quarter revenue also declined quarter-on-quarter due to the off-season. However, the smooth development of advanced displays and significant improvements in yield rates, coupled with the gradual introduction of Micro LEDs into the end-user market starting this year, will contribute to revenue. Therefore, we are optimistic about the display business for the entire year.

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Fu-Cai's Micro LED strategy encompasses displays, wearable watches, and automotive applications. Results in displays and wearable devices are expected this year, while significant growth in automotive applications is anticipated to begin gradually next year. Over the past few quarters, Micro LED production lines have seen significant yield improvements, with positive results in customer verification and product adoption. Currently, the company is in the process optimization phase, aiming to leverage existing capacity to increase production.

In the backlight business, demand in the first quarter is expected to grow by a high percentage compared to the fourth quarter of last year. TVs benefited from the subsidy program in mainland China in the second half of last year, which boosted the consumer market significantly. Demand for large-screen TVs was strong, and due to their larger size, the demand for LEDs also increased. As for IT products such as notebooks and monitors, the first quarter was affected by geopolitical factors. In addition, due to the addition of customers who had purchased devices during the pandemic, the revenue contribution from new customers next year will be more significant.

Fuchai's unmanned backlight factory in mainland China will be completed this year, and product certification is expected to be obtained by the end of the year. Revenue contribution is expected to be more significant next year, and sample production will gradually increase starting this year.

In the automotive business, first-quarter revenue is projected to see near double-digit growth. Following participation in CES earlier this year, the company has been in intensive contact with American automakers, and specific timelines have been established to discuss project details. (Source: MoneyDJ)

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