Taiwan Ratings Corp Downgraded Long-term Corporate Rating on Everlight

Everlight has received downgrade from “twA-” to “twBBB+” estimated by Taiwan Ratings Corp, which reflecting concerns about the balance sheet of the country’s biggest LED chip packager over the next one to two years amid negative market conditions.

Taiwan Ratings said in a statement that, “The downgrade reflects our view of the heightened industry risk in the global LED sector and our belief that Everlight’s profitability is unlikely to recover to the previous high over the next one to two years, due to prolonged oversupply from weak demand and increasing competition.”

“This is due to a weak global economy that has lowered LED TV demand as well as still-low demand for LED lighting,” Taiwan Ratings said, adding that industry oversupply by Chinese and South Korean firms would continue to place pressure on the industry.

For the three months through last month, Everlight posted NT$4.31 billion (US$143.8 million) in revenue, up 15.08 percent from the previous three months — but that was still 3.89 percent lower from a year earlier.

Despite the company’s improvements in cost structure and production efficiency, Everlight’s earnings before interest, taxes, depreciation and amortization would likely fall further in the next two years from 14.4 percent in the first quarter, the agency said.
 

Disclaimers of Warranties
1. The website does not warrant the following:
1.1 The services from the website meets your requirement;
1.2 The accuracy, completeness, or timeliness of the service;
1.3 The accuracy, reliability of conclusions drawn from using the service;
1.4 The accuracy, completeness, or timeliness, or security of any information that you download from the website
2. The services provided by the website is intended for your reference only. The website shall be not be responsible for investment decisions, damages, or other losses resulting from use of the website or the information contained therein<
Proprietary Rights
You may not reproduce, modify, create derivative works from, display, perform, publish, distribute, disseminate, broadcast or circulate to any third party, any materials contained on the services without the express prior written consent of the website or its legal owner.

Nichia’s Tunable 757 receives rave reviews from industry leaders, including the coveted LpS Best Sustainability Technology Award. Nichia, the leader in and inventor of the high-brightness LED, announced its game-changing single LES, tuna... READ MORE

Innovative tunable white, mid-power LED enables luminaire manufacturers to improve colour tuning, shrink optics and fixture profiles, while enabling new design options. Nichia, the leader in and inventor of the high-brightness LED, announces i... READ MORE