Taiwan-based LED driver IC factory assembly by the same industry price-cutting competition, the product bargain-hunting rate of 20% to 30%, affecting the company's gross profit margin performance, the gross profit margin still reached 34-35% at the beginning of the year, the estimated gross margin fell to 30% up and down. The company said that next year will be process improvement to reduce costs, from 0.18um process to 0.13um / 0.15um layout; and from 8-inch to 12-inch wafer cast, next year will be gradually adjusted, the gross profit margin next year is expected to be about 30 -32% level. Optimistic about the continued development of small market pitch, the company continued shipments next year, next year revenue is expected to grow 10% to 12%.
Accumulation for the IC design company, the product is mainly LED driver IC, the application-side display to the main other applications include architectural lighting, TV backlight and general lighting. Revenue accounted for: display about 90%, LED lighting accounted for about 10%. The company is the world's largest display LED driver IC manufacturers, the global market share of more than 50% market share in the mainland market about Qicheng.
The fourth quarter entered the company's traditional business off-season, in October revenue of 202 million yuan (NT, the same below), a monthly reduction of 11.14% in November revenue of 200 million yuan, down 0.89% per month, corporate expectations in December revenue of about 200 million level, the fourth quarter revenue is expected to double-digit quarter-on-quarter decline, and the first quarter of next year is also the industry off-season.
The Company's operating momentum mainly comes from the small pitch display (pitch <6mm) in the mainland market this year. However, the sharp market competition and the price competition in the industry cut the price of products by 20% to 30%, affecting the Company's gross profit margin. In the first quarter gross margin reached 34.91% in the second quarter fell to 32.46% in the third quarter fell to 31.47%, corporate expectations fourth quarter gross margin of about 30% up and down.
To improve gross profit margin performance, the company said it will conduct process improvement to reduce costs, such as the current 0.18um process-based, future to 0.13um / 0.15um layout; and the company is now the main 8-inch wafer cast, is also currently testing 12-inch factory cast film, the situation is not bad, next year will be gradually adjusted; In addition and actively develop new products, the gross margin next year is expected to be about 30-32% level.
From January to November this year, the company's total revenue reached 2.281 billion yuan, an increase of 23.63% over the previous three quarters of EPS up to 5.01 yuan, better than last year's EPS of 3.51 yuan performance. The company said that the small pitch display products is still one of the focal points of the market next year, the overall market will expand next year, is expected to accumulate next year shipments of related products will grow by more than 50%. The company expects revenue to grow 10% to 12% next year.