Author: Chen Kuan-Jung | Published: November 15, 2024, 11:51 AM | Categories: Optoelectronic Technology, Materials & Equipment, E-Commerce
E Ink, the electronic paper giant E Ink Holdings, declared at the end of 2019 that it was entering the era of color e-paper. Over the years, the company has enhanced R&D and improved display performance, leading to continuous growth in color e-paper applications, which are gradually becoming the top choice for consumers and clients.
On November 14, during an investor conference, E Ink Holdings Chairman Johnson Lee emphasized that the company's performance in 2025 would surpass that of 2024. "Color (e-paper) is an inevitable trend and is already underway," he stated.
Consumer e-paper products, such as e-readers, are transitioning from black-and-white to color. E Ink estimates that there are already 200 million e-readers in the global market, and consumer demand for device upgrades is expected. The growth of color e-readers, however, will depend on the strategies of brand clients. To support E Ink Kaleido color printed e-paper technology, E Ink has made the necessary preparations for the required printers and is in discussions with clients about future needs.
The Electronic Shelf Label (ESL) market has returned to normal growth momentum, with fourth-quarter demand outpacing the third quarter, as reflected in October's revenue performance. Johnson Lee noted that Donald Trump’s presidency might influence immigration policies, potentially tightening the availability of entry-level labor. This could accelerate the retail industry's adoption of ESL solutions. He expressed optimism about the demand for ESLs and digital signage for retail advertisements.
▲ E Ink's Key Operating Data for Q3 and the First Three Quarters. (Source: E Ink)
E Ink Holdings’ consolidated revenue for Q3 2024 (in NTD, same below) reached NT$9.189 billion, representing a 35% year-over-year increase. Operating profit was NT$2.401 billion, up 24% year-over-year. However, non-operating income declined sharply to NT$119 million, an 89% decrease year-over-year. Net profit attributable to the parent company was NT$2.005 billion, down 16% year-over-year, with after-tax earnings per share (EPS) of NT$1.75, lower than NT$2.10 for the same period last year.
For the first three quarters of 2024, consolidated revenue totaled NT$22.488 billion, up 6% year-over-year. Operating profit stood at NT$4.811 billion, a 17% decline year-over-year, while net profit was NT$5.346 billion, down 19% year-over-year, still marking the company’s third-highest single-quarter performance in history. After-tax EPS for the period was NT$4.67, below last year’s NT$5.76.
CFO Frank Chen noted that the transition from three-color to four-color product lines led to inventory adjustments during the transition period, resulting in a lower proportion of material sales compared to last year. However, the strong market response to color e-paper applications, including e-readers and notebooks, drove revenue growth. Cumulative revenue for the first three quarters reached the highest level in 13 years.
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