FitTech Orders Scheduled to September Under Accelerated Development of Mini LED

FitTech hosted an investor conference on the 9th of April, where Chairman Hsu Chiu-tien commented on the wave of production expansion in Mini LED during 2021, and how the successive expansion seen in the past will turn to a simultaneous implementation this year. The orders of Mini LED equipment for FitTech have been scheduled to September, and the three major businesses of the company are currently on a positive development.

FitTech exceeded 40% in gross margin during the fourth quarter last year, and arrived at a historical new height in a single quarter at 43.2%. According to Hsu, the record growth had been triggered by the shipment of customized equipment in the fourth quarter, which was regarded as a special circumstance, and cannot be used as a measurement baseline. The average gross margin of 2020 will be used as the benchmark for the gross margin of 2021.

FitTech avoided talking about its one and only OEM client in Mini LED spot testing and sorting, though Hsu did mention about how Mini LED suppliers have all been expanding in production at the same time this year instead of doing it one after another, which explains why the Mini LED equipment orders for the company have been scheduled to September. On the whole, the operation outlook on the particular business is relatively positive.

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The statistics of FitTech show that the company produced the highest revenue ratio in spot testing and sorting equipment in 2020 at 78.24%, followed by OEM and others at 16.9%, and 4.86% in laser processing and LD equipment. Owing to the initiation of the production expansion wave in Mini LED this year, FitTech predicts a climb from 20-30% to 40-50% in the revenue ratio for Mini LED equipment this year.

Serving as a Mini LED equipment supplier, as well as the OEM for Epistar in Mini LED back-end spot testing and sorting, FitTech had announced its financial statement for 2020, which recorded a revenue of NT$3.159 billion, and a net profit of NT$343 million for the shareholders of the parent company that equals an annual increase of 8.54%, as well as an EPS of NT$5.12. FitTech had surpassed half of the share capital for three consecutive years.

FitTech currently accounts for over 80% and 50% of market shares in sorting machine and spot testing machine. As Epistar is not the only client of FitTech, the wave of production expansion disclosed by the latter indicates that major Chinese suppliers are also attempting to elevate the production capacity of Mini LED.

The stock price of FitTech had exceeded NT$200 prior to the investor conference, which is the highest since the company was listed, and the closing price on the 9th was at NT$217.

(Source: Commercial Times)

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