What They Say
The Taipei Times said that E Ink plans to double its capex this year to $56.3 million to expand its capacity and catch up with customer demand. A drop in the number of employees during Covid has meant a boost for demand for ESLs. Revenues are reported to be up 77.18% to $102 million for the first two months of this year. Revenues last year were $539 million The chip shortages should not affect supplies in this quarter.
China’s Onyx International Inc and Europe’s PocketBook International SA have rolled out new e-notes with a stylus and a 7.8-inch color display using E Ink’s Kaleido Plus technology.
What We Think
E Ink is a very solid business these days, with much less of the issues that the LCD makers see – partly by virtue of its monopoly position on its technology! I remember Ross Young once saying that E Ink was the most profitable company among the display makers for one year. That won’t be the case in 2021, but it should do well. (BR)
