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At The First Half FPC Demand Is Far From Expected
Barclays securities issued the FPC (FlexiblePrintedCircuits) flexible printed circuit board report,since Apple had weak demand during Q1 ~ 2Q ,they maintain a more conservative view of the industry, Barclays also confirmed the status of the FPC supply chain, to assess at the first half FPC demand is far from as expected, the three FPC industry in Taiwan, only F-Pottinger (4958), a target price of $ 92; Ka Luen Yick (6153) maintain a "balanced" and a target price of 40 yuan; Prefecture of Taiwan ( 6269) is given less code "target price of $ 80. Barclays said, the expected profit in the first half of the market for three FPC plant Bibakelai optimistic, but at the second half of the year by the conversion of Apple products to see revenue significantly the recovery will not be easy. Three plants most favored or F-Pottinger. F-Pottinger improves automation equipment favorable in the second half performance this year. Barclays Pottinger in the first quarter of this year, F-quarter decline in revenue was estimated at 25%, compared with the previous 10 to 15 percent expansion of the system by the adjustment apple EMS supply chain inventory impact. At Q2F-Pottinger revenue quarter still maintains by 0-5%, although the first quarter of the base period, but at Q2 sales contribution from the Apple iPhone and iPad are not excellent. The good news is that last year, the operating profit margin of the F-Pottinger is 29 to 30%, although the first half of revenue restricted, but no obvious compression in gross margin and. Taiwan county, in the first quarter of this year, is also influenced by the adjustment of the Apple stock the estimated revenue quarter to decline 20 to 25%, and a further expansion of 15% compared with the previous estimate recession. The new iPhone will have more news until July, Q2 is still seasonal downturn, and from Apple revenue the recession might reach 6 percent.
    
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