Fucai: MicroLED enters trial production stage, with promising growth prospects in the next two years.

Fu-Cai's profitability in the second quarter of this year was affected by factors such as exchange rate fluctuations, capacity utilization, and a more conservative demand due to overall economic uncertainty. The company continues to focus on high-potential applications such as automotive, advanced displays, smart sensing, and AI optical communications. Market demand in the third quarter is expected to be similar to that of the second quarter. Fu-Cai is actively increasing shipments of high-margin value-added products in hopes of improving its profitability.

According to industry insiders, the volatility of end-user demand and supply chain has intensified this year, and companies are generally facing cost and inventory pressures. Although market momentum is weak in the short term, Fu-Cai is still adhering to its dual value-added engine development strategy and actively positioning itself for long-term growth opportunities. Fu-Cai continues to focus on high-potential applications such as automotive, advanced display, smart sensing and AI optical communication, which will help improve profitability.

Fu-Cai's sensing business revenue is expected to decline by single digits in the third quarter due to limited demand for new smart wearable products. However, it is still expected to achieve single digit growth for the whole year, driven by new products, and continue to expand into new applications such as industrial automation and biosensing to drive the next wave of growth.

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Specialty lighting is expected to see double-digit quarter-on-quarter revenue growth in the third quarter due to the traditional peak season. However, due to exchange rate fluctuations and market competition, it is still expected to decline by double digits compared to the same period last year, with a conservative outlook for the full year. Future plans include enhancing the lighting efficiency of plant lighting and entering the market with new products such as ultraviolet light and sterilization. Display billboards are expected to see a slight quarter-on-quarter increase in the third quarter, but year-on-year decline pressure remains, and the full year may be flat or slightly down. Advanced display Micro LED has begun trial production and is contributing to revenue, with more significant growth expected in the next two years.

The backlight business saw a slight increase in demand for laptops in the third quarter, and TVs also saw a small quarter-on-quarter increase driven by year-end promotions. However, monitor demand was revised downwards, and the overall business remained under pressure from the sluggish market. The company is actively maintaining its market share and deploying high-end IT solutions in Micro LED and Mini LED to increase their revenue share. The automotive business was dragged down by weak demand for its high-market-share taillight products, but growth momentum in modules and automotive backlighting emerged, with revenue gradually recovering in the third quarter and expected to be more significant by the end of the year. Exterior displays and exterior lighting are expected to become new sources of revenue contribution in 2027. (Source: MoneyDJ)

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