Sintek Photronic and Allied Material Technology Corporation (AMTC) both plan to raise color filter (CF) prices this quarter, as supply is expected to continue lagging demand throughout the year.
During a press conference last Friday, AMTC chairman Charles Yu said that the company plans to raise its CF prices by 3-5%. AMTC has already raised its CF prices by 2-3% in the first quarter. Sintek has decided to raise its CF prices by 5%, due to an appreciating yen at the end of the first quarter and persisting tight supply, said Sintek spokesperson Steven Chang at a recent investors conference.
CF supply is expected to remain tight for the whole year, with supply of 3.5-generation (3.5G) CFs lagging demand by the largest amount, as Taiwan and Japan-based companies migrate toward production of more advanced CFs, Chang said.
In addition, the supply of 4.5G CFs will also continue to fall short of demand, with the monthly capacity shortfall of 35,000 substrates expected to remain at its current level throughout the year, Chang said. He added that tight supply is not expected to ease until after 2005, by which time Taiwanese CF makers should start to see improvements in 4.5G yields and a more sufficient supply of 4.5G substrates.
Despite the fact that Sintek expects its second quarter sales to decrease from the NT$2.1 billion it posted in the first quarter, both companies expect the increase in CF prices to positively affect sales performance in 2004. Sintek expects its 2004 gross margin to jump ten percentage points to 33%, based on larger yields at its 3.5g and 4.5G plants and a rising proportion of LCD TV CF production, while AMTC has raised its financial forecast for the year based on higher CF prices.
|
Taiwan TFT LCD CF production lines* | ||||
|
|
Generation |
Monthly capacity |
Customers |
Note |
|
AMTC |
3 |
80 |
N/A |
- |
|
3.5 |
55-60 |
Prime View International (PVI), AU Optronics (AUO), Quanta Display |
- | |
|
4 |
80 |
AUO, Chunghwa Picture Tubes (CPT) |
180,000-substrate capacity in 4Q | |
|
Cando |
3.5 |
55-60 |
AUO, BOE-Hydis Technology |
- |
|
4 |
40 |
N/A |
- | |
|
Sintek |
3.5 |
55-60 |
AUO, Toppoly Optoelectronics, |
|
|
4 |
75 |
AUO, CPT, HannStar Display |
120,000-substrate capacity in 3Q | |
|
South Sintek Photronic** |
5 |
10 |
HannStar |
60,000-substrate capacity by year-end; Constructing 6G CF plant in 2H |
|
Toppan CFI (Taiwan) |
3 |
30 |
N/A |
- |
|
3.5 |
50 |
M/A |
- | |
|
4.5 |
90 |
AUO, CPT |
- | |
|
5 |
80 |
AUO, Quanta |
Another 5G line to reach 80,000-substrate capacity in 3Q | |
Source: companies, compiled by DigiTimes, January 2004.
*Excludes in-house CF lines by AUO, CPT and HannStar; monthly capacity by each CF maker may vary from those reported in a January 20 article due to capacity ramps during the period
**An affiliate of Sintek Photronic.
|
Sintek: 2004 Financial forecast | ||
|
|
2004 |
Y/Y |
|
Sales |
8.5 |
23% |
|
Gross profits |
2.8 |
- |
|
Gross margin |
33% |
10pp |
|
Pre-tax profits |
1.9-2 |
93% |
Source: company, compiled by DigiTimes, April 2004.
|
AMTC: 2004 financial forecast (NT$b) | |||
|
|
Original version |
Revised version |
Change |
|
Sales |
6.9 |
8.6 |
25% |
|
Gross profits |
1.5 |
2.2 |
47% |
|
Gross margin |
21% |
26% |
5pp |
|
Operating profits |
0.8 |
1.8 |
125% |
|
Pre-tax profits |
0.7 |
1.2 |
71% |
|
Net profits |
0.7 |
1.4 |
100% |
|
Net EPS (NT$) |
0.78 |
1.53 |
96% |
Source: Taiwan Stock Exchange (TSE), compiled by DigiTimes, April 2004.
Article translated by Carrie Yu and edited by Michael McManus
