Epistar and Everlight's combined market capitalization approaches NT$100 billion

Epistar is the world's second largest LED epitaxial wafer manufacturer, with a market value of about 26% of the leading manufacturer Cree. In addition to the off-season utilization rate exceeding 90%, Epistar's stock price has launched a second wave of offensive. In addition to Epistar's stock price continuing to hit new highs, its combined market value with packaging leader Everlight has approached NT$100 billion (the same below), becoming the most eye-catching group before the Taiwan stock market closed.

Epistar admitted that the order visibility in the fourth quarter of last year and the first quarter of this year was much better than expected. Last quarter's revenue grew by 6% against the trend. Judging from the full utilization situation this season, the production line must work overtime to cope with the New Year. However, in previous years, Epistar's first quarter was the lowest of the year, and this year should not be out of this cycle.

This is not the first time that Epistar has been fully loaded during the peak season. In 2009 and the first quarter of 2010, Epistar had been fully loaded during the peak season. In 2010, Epistar set a record high profit with earnings per share of NT$7.16. Starting this year, the United States has banned 60-watt incandescent lamps. The region is the world's third largest lighting fixture market, which has inspired a lot of confidence in the global LED industry.

In addition, Cree delivered brilliant financial figures last quarter, with an annual profit growth rate of 75%, and the proportion of LED lighting revenue has climbed to 42%, indicating that the price war launched by Cree since March last year has not eroded profits. Profits have increased instead of decreased, which has also encouraged Epistar's stock price to launch a second wave of offensive. Epistar broke through the previous high yesterday, setting a new high record of NT$69.9, and the market value has also rebounded significantly. Based on yesterday's closing price, Epistar's market value has climbed to NT$64 billion, about 66% of the high market value.

The top three LED chip manufacturers in the world are Cree, Epistar, and Nichia. Nichia is not listed. Cree has been rising continuously for nearly a year, and its market value has soared to 8 billion US dollars. Its price-to-book ratio has also climbed to 74 times. Compared with Epistar's market value of 64 billion yuan, which is only about 26% of Cree, there is still a big gap in the market value of the two companies.

Since the beginning of this year, Epistar and Everlight have been the leading index stocks in the Taiwan stock market LED group. Everlight was the first to break through the 70 yuan integer mark. Epistar also attempted to break through the 70 yuan mark at 69.9 yuan yesterday. The total market value of Everlight and Epistar has reached 95.5 billion yuan, approaching the 100 billion yuan mark.

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