Capital Market Helps LED Lighting Firms Expand Their Earnings

In 2010, many industrial enterprises influxed into the LED packaging business in the middle reaches of the industrial chain and the downstream LED lighting business. At the same time, the LED industry in the industry also accelerated the pace of expansion, mainly reflected in the expansion of the packaging and lighting business capacity and the industrial chain. The vertical integration aspect. To this end, more and more companies are listed on small and medium-sized boards, GEM boards and Hong Kong stocks. A number of listed companies have issued financing for semiconductor lighting projects, and more companies have entered the stage of preparation for listing. Leveraging the capital market will further increase the speed of development of the domestic LED industry. Summarizing the 2010 annual report of LED listed companies, it can be said that the performance is all across the board. After passing the test of the financial crisis, the LED industry has demonstrated strong vitality and generous returns with the support of capital power.

Chip companies are profitable

The chip is an upstream core part of the LED industry. It is also a relatively high threshold for the industry and profits. This is mainly controlled by the hands of a few foreign companies, but domestic companies are also struggling to gain greater market share and achieved better results. .

Sanan Optoelectronics (SH600703) is a leading LED chip manufacturer in China. In 2010, the company achieved sales revenue of 860 million yuan and net profit of 420 million yuan. Compared with the same period of last year, sales revenue increased by 83.42% and net profit increased by 132.73%. As a post-doctoral scientific research workstation certified by the Ministry of Personnel of the People's Republic of China, the company has not only introduced advanced LED epitaxial growth and chip manufacturing equipment in the world, but also possesses a technical R&D team composed of top talents in optoelectronic technology at home and abroad, and has mastered the advanced epitaxial wafers. The core technology of growth and chips is the largest full-color ultra-high brightness LED chip manufacturer in China, and it has realized the full-color high-brightness LED chip industrialization production base. At present, the company already has 77 world-class MOCVD and matching chip manufacturing production lines and testing equipment. By June 2011, it will have reached 144 sets of equipment, with an annual production capacity of 5.6 million wafers.

In 2010, Lianchuang Optoelectronics (SH600363) fully completed its annual business plan, operating income of 1.2 billion yuan, of which LED products sales revenue of 840 million yuan, LED products to achieve rapid growth, profit margin of 21%, unchanged from last year. In addition to the traditional chip industry, the company has implemented an extension of the industrial chain. The LED lighting source products have been transferred from the R&D stage to the production stage. LED lamps, LED fluorescent lamps, and LED bulbs have been independently developed and mass-produced; semiconductor lighting TOP and High-power LED device production line construction is basically completed. In March this year, LED devices for lighting have begun mass production.

Silan Micro (SH600460) achieved a significant increase in operating performance in 2010, exceeding company expectations, operating income of 1.5 billion yuan, of which LED industry, a wholly-owned subsidiary of Shilan Mingxin, realized operating revenue of 390 million yuan. It increased by 94% and achieved a net profit of 120 million yuan. In 2010, Shilan Mingxin has increased the production capacity of blue-green LED chips to 650 million (per month), and has newly ordered eight large-scale MOCVD equipment; Shilan Mingxin Co., Ltd. has increased its capital twice and its registered capital has reached 500 million yuan. Yuan; and invested in the establishment of Chengdu Silan Semiconductor Manufacturing Co., Ltd. to produce LED products. In 2011, Shilan Mingxin implemented a high-brightness LED chip production line technological transformation project. The total investment of this project is 500 million yuan, and the production capacity of the Shilanming core blue-green LED chips will increase to 1.1 billion (monthly).

Ganzhao Optoelectronics (SZ300102) was listed on the Shenzhen GEM in 2010. It achieved operating revenue of nearly 300 million yuan and net profit of 140 million yuan, respectively, an increase of 54.4% and 63.1% respectively over the same period of last year. In 2010, the company produced 472,611 pieces of LED epitaxial wafers, an increase of 71.5% over the previous year; sales of LED chips 22628KK, an increase of 63.8% over the previous year. The company's products are mainly sold in the Pearl River Delta and the Yangtze River Delta. Among them, Guangdong Province is an LED industry concentration area. In 2010, it sold 160 million yuan, accounting for 52.43% of total operating revenue, and Jiangsu Province accounted for 12.26% of total operating revenue. The year has increased by 79.3%.

The year 2011 is the first year of the “re-starting year” of the photo-electricity, and is also the first year for the company to start a new business and grow rapidly. In 2011, the company will continue to introduce 15 MOCVD production lines in Yangzhou. By the end of 2011, Yangzhou will reach 20 MOCVD production lines, and will fully put into production, and strive to fully complete the construction of the Xiamen base in 2011. In 2012, it will introduce new production lines, and Complete commissioning and commissioning.

Packaging company extends downward

National Star Optoelectronics (SZ002449) is a leading company in the LED packaging industry and the first listed company in the packaging industry. It is listed on the Shenzhen SME Board. In 2010, National Star Optoelectronics expanded the output of packaged devices while investing in LED chips to lay the foundation for the company's vertical integration strategy, and its operating performance continued to grow. In 2010, the company achieved operating revenue of 880 million yuan, an increase of 39.7% over the previous year, and a net profit of 150 million yuan, an increase of 28.3% over the previous year. This year will use the funds raised to invest in the construction of four projects, with a total investment of more than 500 million yuan, respectively, "a new surface mount LED technology transformation project", "power LED and LED light source module technology transformation projects," "LED backlight technology Reconstruction project and key technology and industrialization of semiconductor lighting fixtures.

Hongli Optoelectronics (SZ300219) is offering shares and is expected to be listed in May. In 2010, Hongli Optoelectronics had an operating income of 440 million yuan, a compound annual growth rate of 37.3%, a net profit of 61.29 million yuan, and a compound annual growth rate of 62.6%. The gross profit margin of the company is basically the same as that of listed companies in the same industry, but the growth rate is relatively fast. This is mainly related to the fact that the gross profit rate of the company's white LED products has increased rapidly and the proportion of sales has continued to increase. Based on the existing mass production of SMDLED series products, the company will base itself on the technical advantages in the field of white LED and high power LED, introduce advanced foreign equipment, and further expand the thinner and smaller TOPLED, CHIPLED and HighPowerLED in SMDLED series products. Production scale. The company has purchased a total area of ​​66,667 square meters of land in Guangzhou (Huadu) optoelectronics base for the company's subsequent development. Through the implementation of "new surface mount LED construction projects" and "LED lighting technology and industrialization projects", SMDLED will increase annual production capacity of 5.52 billion, LED application products will increase annual production capacity of 6.2 million PCS. The company will also be timely Taking into account the upstream chip manufacturing technology and downstream applications, focusing on the application of new technologies, new materials, and new processes, on the one hand, consolidating and expanding the company's advantages in LED device packaging, and on the other hand, extending the company's upstream and downstream technologies. ready.

Shenzhen is the largest base of domestic LED industry, and Lehman Optoelectronics (SZ300162) is the first listed company here. In 2010, the company's operating performance maintained a rapid growth. The main business income was 210 million yuan, an increase of 102.77% from the previous year; and a net profit of 39 million yuan, an increase of 82%. In 2010, the revenue of company’s device products increased significantly compared with 2009, especially SMD chip device products achieved rapid growth of 408.54%, and lighting products began to be sold in 2010.

Application companies expand their scale

Judging from the scale of the industry, True Bright (HK1868) claims to be the leading LED company in China, and it covers the entire LED industry chain, but its current focus is still on application products. In 2010, Zhenming's operating income was HK$1.48 billion, an increase of 33.4%, and net profit was HK$170 million, which was the same as last year; LED decorative lamps were HK$750 million, up 24.3%; ordinary LED lighting products were HK$310 million. 226.1%; Due to the large number of LED lights used in the stage, operating income increased by 5.1% to HK$110 million; sales of incandescent decorative lamps decreased by 6.2% to HK$250 million. Neo-Neon has thoroughly inspected the production processes and processes, further increasing the production yield from 75% to more than 97%.

Neo-Neon expects that the demand for LED decorative lighting products will continue to increase in the future, and that the market for LED general lighting products will also grow rapidly. It will increase R&D and continue to look for M&A opportunities to expand the Group’s market share and technological level in order to increase economies of scale and reduce Product costs, thereby increasing the profitability of the Group. At present, Neo-Mingy’s MOCVD has reached 19 units, and its chip production capacity will increase from 15,000 chips per month in 2010 (2吋) to 45,000 (2吋) per month or 1.35 billion chips per month. To meet self-use, external sales of chips in the proportion of total output can also be raised to more than 50%. Neo-Neon will increase its marketing efforts, especially its efforts to expand the Chinese market.

Zhouming Company is also in the process of offering shares and is expected to be listed in the first half of the year. It will become the second listed company in Shenzhen LED industry. In 2010, the company's operating income was 500 million yuan and net profit was 56 million yuan. In 2010, sales of display screen products still accounted for 93.27% of total sales revenue of the company, and sales revenue of lighting products was 33.38 million yuan. Although the company's lighting R&D work started at the end of 2007, relying on the company’s technical foundation in LED applications, as well as the company’s high-quality R&D team and perfect R&D mechanism, the company’s lighting technology has improved rapidly and it has mastered many The core technology of the project has continuously increased its contribution to the company's operating revenue. By adjusting the product structure and increasing the sales ratio of high-power LED lighting products, the company’s average selling price of LED street lamps and bulb lamps in 2010 increased by 3.27% and 16.48% respectively year-on-year. The LED display screen and lighting related projects in the company's raised funds were awarded the title of “Top 500 Guangdong Modern Industry Projects” by the Guangdong Provincial Development and Reform Commission. , LED lighting expansion project plans to invest 42.64 million yuan. The construction period of the project is 20 months. After the production is completed, the new street lamp production capacity will be 55,000/year and the bulb lamp production capacity will be 100,000/year. The company continued to pay attention to the latest developments in the LED lighting market and gradually expanded the LED lighting product business scale. The company has reserved a good technical foundation and craftsmanship in the field of LED lighting, and is committed to extending the industrial chain to the upstream packaging to reduce dependence on suppliers, effectively control the cost of products, and have the core competition to achieve a leading edge in the industry. force. With the implementation of the lighting production base project in the fundraising project, the scale of the company's lighting product business will expand rapidly.

"Overseas households" develop rapidly

As a strategic emerging industry supported by the state, LED has attracted many enterprises outside the industry to enter, and the scale of investment is generally large, showing that these "foreign households" determination to make the LED industry bigger and stronger.

In 2010, Tongfang Co., Ltd. (SH600100), a subsidiary of Tsinghua University, continued to achieve a steady improvement in its performance. The company achieved operating revenue of 18.258 billion yuan for the full year, including semiconductor lighting industry sales revenue of 670 million yuan, the company has initially built a wafer from the epitaxial wafers. / Chip manufacturing, product application to the complete industrial chain of urban landscape lighting, and implementation of industrial layout around the northeast, north, east, south China supply area radius, has formed Beijing LED epitaxial wafer/chip, Shenyang, Guangzhou LEDTV backlight, Nantong LED epitaxial wafers and backlight modules, lamps and lanterns four semiconductor and lighting production base, semiconductor and lighting industry has begun to take shape. The company's high-brightness LED light-emitting diode chip production base in Beijing has been completed, reaching six MOCVD production lines and an annual production capacity of 200,000 wafers. The company has begun purchasing 48 MOCVD core equipment for its LED production base in Nantong. The company has reached an annual output of 3 million indoor LED lighting products, outdoor lighting products 300,000 盏 production scale.

In 2010, Han's Laser (SZ002008) realized a total operating revenue of 3.1 billion yuan, of which LED equipment and product sales revenue reached 440 million yuan, and subordinates Han's Optoelectronics, Han's Green Energy, Han's Yuanheng, Lusheng Optoelectronics, Guoyexing and other LED industries. Subsidiaries. Han's Optoelectronics is mainly engaged in the independent R&D and production of LED complete automation packaging and testing equipment. In 2010, the main products, crystal-fixing machines, spectrophotos machines, and loading machines achieved a total sales revenue of over 100 million yuan, an increase of 337% over the same period last year.

In 2010, BDO Runda (SZ002005) achieved operating revenue of 2.6 billion yuan, of which LED industry revenue was 360 million yuan, an increase of 111.83% over the previous year, and the profit margin was nearly 30%. The company's LED business during the reporting period, the company's LED business investment huge, in Wuhu, Yangzhou, the industrial base construction across the board, the new layout of the Dalian LED optoelectronic industry base, the introduction of a large number of high-end LED industry professionals. The company plans to achieve mass production of epitaxial wafers and chips at Wuhu Base in 2011. The packaging business will achieve large-scale operations, display and lighting business will achieve great improvement, and actively promote the construction progress of LED industry bases in Dalian and Yangzhou, and strive to achieve this year or next year. In the first half of the year, it will enter the trial production stage; it will intensify market development efforts and strive to increase the proportion of LED business in the company's operating revenue in 2011 to 30%. BDO Runda's strategy is to transform and upgrade from the traditional small home appliance industry to the LED industry.

At present, some of the major domestic LED manufacturers have expanded their production. Some companies outside the industry and more and more multinational LED companies have increased their investment in the country, making the supply and demand in the next two years will break out simultaneously, and the whole industry will enter a Opportunities and challenges coexist in a new phase, and huge industrial development opportunities will be accompanied by more intense market competition and pattern adjustments. Industry reshuffling and business integration will inevitably be avoided.