Vertical Divider
AP System Expects Slow 1H20 Ending in 28% Y/Y Revenue Growth
March 29, 2020
Advanced Process System (APS), the leading ELA, encapsulation and LLO provider, announced its 2019 revenue and operating income were $396M, down 39% Y/Y and $31M, down 41% Y/Y, respectively, well below their targets. According to Hana Securities Q1’20 revenues and operating income are forecast at $80.2M and $5.4M, down 43% sequentially. Chinese FPD installations are expected to be pushed from the 1H20 to 2H20 resulting in 60% of 2020 revenues in Q3’ and Q4 of 2020.
Table 1: Revenues & Operating Income Trend and Forecast
March 29, 2020
Advanced Process System (APS), the leading ELA, encapsulation and LLO provider, announced its 2019 revenue and operating income were $396M, down 39% Y/Y and $31M, down 41% Y/Y, respectively, well below their targets. According to Hana Securities Q1’20 revenues and operating income are forecast at $80.2M and $5.4M, down 43% sequentially. Chinese FPD installations are expected to be pushed from the 1H20 to 2H20 resulting in 60% of 2020 revenues in Q3’ and Q4 of 2020.
Table 1: Revenues & Operating Income Trend and Forecast
Source: Company, Hana Securities, OLED-A
Hana projects an increase in flexible display capacity of 157K substrates per month based on 9 additional lines in China and 2 additional lines at SDC. APS’ estimated new booking could be $685M in 2020. APS announced that the company has received POs from
- BOE B12 issued a PO to AP for ELA for $123.8M ON February 24, 2020.
- CSOT T4 issued a PO to AP for ELA for $72.6M on January 7, 2020
- BOE B12 45K/M
- CSOT T4 30K/M
- GVO V2 15K/M
- Visionox V3 30K/M
- Wuhan Tianma 15K/M
- BOE B15 15K/M
- CSOT T5 45K/M
- SDC 45K/M
- Tianma 45K/M
- Visionox V3&V4 45K/M
Figure 1: Global Flexible OLED Investment Trend & Forecast (K/M)
Source: Valuewise, Hana Securities