BenQ Materials has said that its polarizer production lines are currently operating at full capacity with clear order visibility to last through the end of 2018, according to company chairman ZC Chen.
The supply of polarizers is getting tight recently as China-based flat panel makers are continuously ramping up their capacities, while most polarizer suppliers are reluctant to commit to new expansion projects, Chen said.
BenQ is expected to see its revenues grow significantly for the third quarter as well as the entire year of 2018, buoyed by strong sales of its polarizer products as well as medical materials and contact lenses, Chen said.
Nonetheless, the company also reported that its net profits declined 75.45% on quarter and 64% on year to NT$27.1 million (US$883,053) in the second quarter of 2018. EPS for the quarter stood at NT$0.08 compared to NT$0.34 a quarter earlier.
Expenses increased significantly in the second quarter as the development of new polarizer products, launched in response to client's demand, has not been as smooth as expected, Chen explained, adding that the situations have been improved since the second quarter.
BenQ is developing high-margin polarizers for 8K displays with shipments to kick off at the end of 2018 or early 2019; the company is also developing integrated polarizer solutions for foldable smartphones and automotive applications, Chen revealed.
Sales of polarizer products will account for 90% of BenQ's total sales in 2019, with the ratio to lower to 85% in 2019 as the company is ramping up sales of medical products and solutions.
Sales of its newly acquired subsidiary Sigma Medical Supplies, a major supplier of sterilized packaging bags and other medical materials, will start contributing to BenQ's revenues growth in the third quarter.
BenQ aims to ramp up medical product revenues to 50% of its total sales by 2020, Chen said.
BenQ Materials chairman ZC Chen
Photo: Digitimes file photo
Article translated by Steve Shen
