LED manufacturer Everlight held an investor conference on the 26th. Lu Chun-yu, deputy director of the Finance and Accounting Center, adopted a conservative view on the company's operations in the first half of 2025, expecting second-quarter revenue to be close to the same period last year, and a recovery expected in the second half of the year driven by invisible light and automotive products.
Executive Vice President Su Hongyan stated that invisible light products performed exceptionally well, accounting for 40% of sales in the first quarter and continuing to grow. These products are mainly used in fields such as optical couplers and sensing elements. Optical couplers account for 50% of invisible light products, while high-end, high-power products can be applied to equipment such as solar power plants and charging piles. Sensing elements are widely used in applications such as wearable devices and facial recognition.
The automotive product market showed strong growth momentum, accounting for 14% of sales in the first quarter. This includes automotive backlight modules and automotive invisible light products. Su Hongyan pointed out that with the development of the electric vehicle trend, automotive backlighting will become the main development direction. Everlight has cooperated with major AR, VR and smart glasses manufacturers, and its market share is expected to grow in tandem as market volume increases.
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Lu Chun-yu explained that looking ahead to the second half of the year, the supply and demand of the LED industry will remain within a controllable range, the traditional peak season is still expected, Everlight's gross profit margin is expected to remain at the average level of recent years, the operating expense ratio will remain at around 18% to 19% of revenue, and the tax rate will also remain flat.
Regarding capital expenditures, Lu Chun-yu stated that approximately NT$600 million was originally estimated for equipment upgrades, but due to uncertainties surrounding tariffs, the current situation is uncertain. The company has ample cash reserves, but due to the high degree of uncertainty surrounding tariffs and exchange rate issues, there are currently no other major investment plans.
Regarding product competitiveness, Su Hongyan emphasized that price competition in the LED industry remains fierce, especially in the upstream sector, leading to continued price pressure on lighting products. However, Everlight maintains its competitiveness through technological upgrades and vertical integration, and should be less affected than its competitors. (Source: Juheng.com)
