E Ink Holdings Inc, the only supplier of e-paper displays globally, recently announced it anticipates revenue to increase by a low double-digit percentage this year, the Taipei Times reported. The company cites strong demand for electronic shelf labels (ESLs) from retailers as a reason for this growth. However, what is also concerning for the company is the sluggish consumer demand for e-readers and e-notes, which may impact its overall growth potential. The company said the potential impact of further interest rate hikes by central banks on the world economy has had a negative impact on demand for e-readers. As a result, E Ink expects revenue from e-readers to decline this year as some manufacturers may delay product launches until economic conditions improve.
The company, based in Hsinchu, remains optimistic about the adoption of ESLs in the US and Europe. With retailers facing staff shortages and frequent price adjustments amid high inflation, many are considering a shift away from traditional shelf labels. This presents an opportunity for E Ink’s ESLs to gain wider acceptance in the market. Further, increasing size and color display capabilities of e-paper displays has led to a growing trend among customers to use Electronic Shelf Labels (ESLs) for signage in public spaces and advertising on public transportation. E Ink said these displays were their biggest source of revenue in the third quarter of the previous year.
Despite these challenges, Lee remains cautiously optimistic about the company’s outlook for the year. E Ink expects revenue to grow by a single-digit percentage this year, with the possibility of double-digit percentage growth depending on the macroeconomic situation. Last year, the company achieved its best performance in 11 years, with revenue expanding 26 percent year-over-year to NT$30.06 billion (US$975.7 million).
E Ink’s capacity expansion plans are on schedule, and the company plans to spend NT$5 billion to NT$6 billion on new facilities and manufacturing equipment this year. To fuel future growth momentum, E Ink will build the fourth of six planned production lines in Taoyuan’s Guanyin District this quarter or next.
E Ink’s net profits reached a historical high of NT$9.91 billion last year, up from NT$1.84 billion in 2021, with earnings per share also rising significantly. The company’s board of directors has approved a cash dividend of NT$4.5 per common share, representing a 52 percent payout ratio.
With a keen interest in tech, I make it a point to keep myself updated on the latest developments in technology and gadgets. That includes smartphones or tablet devices but stretches to even AI and self-driven automobiles, the latter being my latest fad. Besides writing, I like watching videos, reading, listening to music, or experimenting with different recipes. The motion picture is another aspect that interests me a lot, and I'll likely make a film sometime in the future.