Optical film maker Wah Hong Industrial will add ultra-size cutters to make optical film for use in up to 90-inch LCD TVs and two optical film coating lines in 2015, with its total capital expenditure budget to increase from NT$300 million (US$9.68 million) in 2014 to NT$500-600 million, according to the company.
Wah Hong so far produces optical film used in below 60-inch LCD TVs. To meet demand for optical film of larger sizes from LCD TV vendors Sharp, Sony and Panasonic, Wah Hong will procure cutters of large-size optical film in 2015, the company said. In addition, Wah Hong has three coating lines currently and will add two more which will be completed in the third quarter of 2015 and come into operation in the following quarter, the company indicated.
In addition to the China market which accounts for about 30% of consolidated revenues, Wah Hong has been tapping the Japan market and expects the revenue proportion for the market to rise from 20-25% in 2014 to 30% in 2015. Wah Hong will begin to tap emerging markets including Mexico, Latin America, Southeast Asia and Turkey in 2015.
Due to lower than expected optical film shipments, Wah Hong saw November consolidated revenues of NT$908 million slip 16.01% on month and 4.84% on year, the company said.
Wah Hong is expected to have consolidated revenues of about NT$3 billion for the fourth quarter declining 8% sequentially, and NT$12.0-12.5 billion for 2014 growing about 10% on year, according to market watchers.
Article translated by Adam Hwang
