led chips and packaging reproduction prices
China LED chip and packaging prices rise again by the end of August. Small display market strong demand is to promote the supply chain price increases the main momentum.The end of August China LED chip and package prices again. Small display market strong demand is to promote the supply chain price increases the main momentum.According to the survey, China’s largest chip maker San An Optoelectronics and the main display screen packaging supplier Cinda optoelectronic invariably announced price increases of 10% and 5%. Indoor LED display screen, the average number of LED per square meter from 60,000 in 2015 to the next 2 years will gradually increase to 270,000, means that the demand for the same area, the upstream LED package and the number of chips used Increased more than 3 times.Estimated 2016 small spacing LED consumption will reach 29 billion particles, with the gradual development of China’s packaging materials towards the localization of the cost will further decline and promote the development of the market, in 2021 the small pitch LED consumption will reach 1,898,000,000,000 particles, The compound growth rate of up to 46%, the output value is expected from 2016 to 300 million US dollars in 2021 to 800 million US dollars, the annual compound growth rate of 21%.In addition, the outdoor display screen also began to appear the trend of small spacing package, with the outdoor surface mount LED gradually overcome the moisture, UV and other technical problems, outdoor display screen high resolution, high density trend is gradually rising, The average pitch from P10 to P6 following progress, is also expected to show explosive growth. Estimated consumption of outdoor LED will grow from 93.6 billion in 2015 to 2,864 million in 2021, the compound annual growth rate of 20%.Dongxing Securities believes that with the backward production capacity of the phased out, LED lighting products prices will gradually stabilize, market share will also focus on the industry leader. Optimistic about the three optoelectronics, Liard, sun lighting.Three security optoelectronics: short term performance under pressure, compound semiconductor long term bullishCapacity expansion is rapid, revenue growth significantly. By the end of 2015, about 170 equipments were put into production. In the first quarter of 2016, a total of 226 equipments were put into production. By the end of the first half of the year, the MOCVD equipment of the company had been put into production, and the first half of the year was expanded by nearly 50%, reflecting the strong downstream demand . The first half of the company achieved operating income of 2.778 billion yuan, an increase of 21.25%; the company in the second quarter to achieve single quarter operating income of 1.6 billion yuan, the highest value, an increase of 17.25%, growth of 35.82%.Production costs fell less than expected, causing gross margin decline, short term performance under pressure. LED product prices continued to decline, compared with the same period last year, a larger decline in the past to maintain the level of gross margins continued to remain high mainly through technical upgrading to reduce production costs, the company’s second quarter production costs fell less than expected, resulting in significant decline in gross margin, Quarterly operating profit of 469 million yuan, down 18.58 percent, to achieve the mother net profit of 509 million yuan, down 7.37%.Headlight business grew rapidly, the prospects are bright. In addition to the production of LED chips, the company also cut into the field of LED applications, its wholly owned subsidiary of the Swiss optical car light business grew rapidly, widely recognized by customers, has a variety of automotive supply, follow up business will rapidly expand and broad prospects.Compound semiconductor business sales revenue, follow up will accelerate the development progress. The company’s compound semiconductor business to participate in customer design case 263, there are 19 chips through performance verification, some customers began shipping in the second quarter, three security integration to achieve 2.506 million yuan sales revenue. The Company will complete the certification of other products as soon as possible, accelerate the pace of new equipment procurement, accelerate the pace of M & A and implement the project as soon as possible to enhance the core competitiveness and profitability.In the latter two quarters, the Company will strengthen R & D and strictly control production costs, improve product gross margin and profitability, and achieve steady growth in sales revenue and profit.Risk Tip: The company’s cost further decline than expected; compound semiconductor business to promote the rate is less than expected; overseas M & A progress is less than expected.Riyadh: step by step, integrated development of the futureRiad August 20 evening semi annual report released in 2016: 2016 first half of the company achieved operating income of 1.732 billion yuan, an increase of 188.44%, which attributable to shareholders of listed companies net profit of 184 million yuan, an increase of 125.67%. At the same time the company maintained a high gross margin, consolidated gross margin was 37.01%.Look at small spacing, as scheduled outbreak. As of the date of this report, Riyadh small space TV in 2016 signed a new order of 1.1 billion yuan, up 104% over the same period last year, of which 48 million yuan from January to June, an increase of 93%, nearly two months of explosive growth . From the industry distribution, the rapid growth of the industry as the base of the lower traffic and advertising media industry, and the volume of government agencies and military institutions in the proportion of revenue structure decline, supporting us on the small pitch will gradually Accounted for the original DLP splicing big screen of the new market share, as well as the display, advertising and other applications gradually penetrate the point of view. At the same time, benefit from the acquisition of the United States of America, the first half of 2016 the company overseas business income 790 million yuan, an increase of 452.91%, although the small overseas income of only 132 million yuan, but an increase of 91% in high speed, the future From China’s first small force will gradually spread to the world conduction, to meet the broader market space, as a market share of more than 50% of the small pitch absolute leader will fully benefit from the small spacing industry growth.Also look at lighting, irresistible force. In the first half of 2016, Jinda Lighting achieved an operating income of RMB 305 million, of which profit was RMB 0.74 billion, up by 350% over the same period of last year, which exceeded 95% of the original profit of RMB 38.03 million. Coupled with the promise of 35 million yuan transit lighting net profit, Liad lighting plate order volume growth over last year will be more than 100%, has become the largest domestic lighting engineering enterprises. Urbanization, cultural viewing needs to enhance the positive factors, will usher in the next 3 5 years, the city landscape lighting market economy, leading + PPP project synergies of the dual support will protect the rapid growth of lighting plates Liard.
Look at integration, worth the wait. The strategic positioning of “Building a Happy City with the Government” is a stage for Riyadh’s products and business collective display of talents. It not only covers LED display, lighting engineering and VR AR technology, but also integrates deep culture Creative ideas, supplemented by drastic expansion of the PPP project to achieve a win win situation between the Government and the company, the future will be an important support for the performance of Riyadh, worth the wait. The strategic layout of the Company is clear and the momentum of development is strong.Sunlight: revenue structure continued to optimize, accelerate the development of overseas marketsQ2 performance back to high speed growth, into the domestic LED lighting leader2016 first half of the year, the company achieved operating income of 2.126 billion yuan, an increase of 11.92%, of which, LED products revenue 1.74 billion yuan, up 39.71%, accounting for more than 80%; attributable to shareholders of listed companies net profit 218 million yuan, An increase of 22.01%; consolidated gross profit margin of 26.26%, up 2.38 percentage points over the same period last year. Among them, 2Q16 single quarter operating income of 1.103 billion yuan, an increase of 11.75%, attributable to shareholders of listed companies net profit of 117 million yuan, an increase of 43.03%, the company returned to high growth in the 16Q2.The Company continued to optimize its revenue structure and achieved rapid growth in overseas marketsThe company returned to high growth in the second quarter, thanks to the continuous optimization of product structure and overseas layout continued to advance. On the one hand, the company increased investment in innovation, direct investment in the reporting period for nearly 20 million yuan of investment, with the rate of automation continues to increase, rising gross margins on the other hand, the company actively explore overseas markets, foreign markets new expansion More than 60 customers in Africa and Oceania and other markets is growing rapidly. The future, benefit from the slowdown in the price of LED lighting, the company’s management level and the continued growth of overseas orders, 16 years the company is expected to maintain steady growth in annual results.The company is operating sound, fine texture of the leading domestic LED lighting enterprises. In the overseas customer orders to maintain growth, accelerate the expansion of customers and the gradual establishment of its own brand driven by the company’s future will continue to maintain steady growth.
LED industry boom is less than expected risk; LED product prices fell sharply risk; raw material prices rose sharply risk.