Taiwan-based Entire Technology is forecast to sustain its revenue growth to October as raw material prices are stabilizing with shipment increases of Mini LED products. Institutional investors predict that Entire will be out of the red in this quarter and continue to head for earnings growth.

Founded in 2003, Entire specializes in developing light guide plates and diffuser plates for backlight modules, which are applied to various monitors, eco-friendly business and home lighting products, commercial signage, appliance display modules, and biotech displays.

In Q2, some of Entire’s downstream clients could not assemble and ship products due to shortages of driver ICs for TVs and lighting products. Moreover, plastic prices soared in the quarter, causing the company to surprisingly post a net loss after tax of NTD 2.63 million (USD 94,103) in 1H21 with a net loss per share of NTD 0.04, compared with an EPS of NTD +1.03 last year.

Image source: PAIXIN.COM

Entire admitted that its Japanese and South Korean clients suspended production of their TV plants in Southeast Asia following the COVID-19 outbreak. Further, demand for lighting modules remained low because downstream suppliers were prone to problems related to driver IC shortages.

To deal with the said problems, Entire Technology quickly adjusted its product mix. Factors including surging panel prices and material shortages in 1H21 have prompted the company’s clients to speed up launching value-added mid- and high-end products, which has accelerated the introduction of Entire’s Mini LED applications into new models.

After installing its Mini LED applications in gaming notebooks for the first time in 4Q20, as Entire indicated, the company has developed three and one TV and monitor customers, respectively, and expects to get two more TV customers in 4Q21, with high-end Mini LED TVs being put into mass production in July. The company is likely to increase the share of Mini LED application revenue to 10%, beating the original forecast of 5%. (Source: udn.com)