Looking at the future development trend from the "record" of LED listed companies in the first quarter

It is understood that as of now, the domestic LED industry 2016 annual report and 2017 first quarter report have been released. From the published first quarter 2017 performance report, we can find that, overall, the performance of A-share LED concept related listed companies has generally achieved growth, nearly 90% of net profit is positive growth, more than 30% of corporate net profit It is understood that as of now, the domestic LED industry 2016 annual report and 2017 first quarter report have been released. From the published first quarter 2017 performance report, we can find that, overall, the performance of A-share LED concept related listed companies has generally achieved growth, nearly 90% of net profit is positive growth, more than 30% of corporate net profit Achieved double growth. The momentum of everything shows that the LED industry trend is improving. In this article, Xiao Bian specially compiled the results of industry-related research and analysis, and will discuss the performance of LED companies in the first quarter of this year and the future development trend of enterprises in the LED industry chain. for reference. First, the current: look at LED leading companies in the first quarter of the record to benefit from the LED industry and the market demand for chip products turned better, of which, the domestic production of the largest production of red and yellow LED epitaxial wafers and chip companies, one of the dry photoelectric net profit The growth rate ranked first. In the first quarter of this year, Ganzhao Optoelectronics achieved operating income of 268 million yuan, a year-on-year increase of 36.32%; net profit attributable to shareholders of listed companies was 41.57 million yuan, a year-on-year increase of 7598.90%. At the same time, the company is also an important supplier in the field of blue-green LED epitaxial wafers and chips. In 2017, the company plans to invest nearly 740 million yuan to expand its main business. According to analysis, from the LED industry in 2016 and the first quarter of 2017, the core financial indicators of listed companies all showed a significant improvement trend. The core indicators include ROE, revenue scale and growth rate, net profit and growth rate of returning home, gross profit margin, and net. Profit and operating cash flow, etc. The core financial data of the LED industry has improved significantly, and the LED industry trend has been verified to be solid and reliable. Among them, LED chip industry three giants Sanan Optoelectronics, Huacan Optoelectronics, Aoyang Shunchang, and LED packaging giant Mulinsen. According to the analysis, these leading enterprises will continue to benefit from the priority in the LED industry's continued improvement and concentration. Below, we first focus on the first quarter performance of these companies. As a leading semiconductor lighting engineering company recognized by the Ministry of Science and Technology and the Ministry of Information Industry, Sanan Optoelectronics has the largest MOCVD equipment capacity in the country, and its LED chips have achieved full coverage of different fields and different bands. In the first quarter of this year, Sanan Optoelectronics achieved operating income of 1.90 billion yuan, a year-on-year increase of 68.90%, and net profit attributable to shareholders of listed companies was 691 million yuan, an increase of 51.14%. It is said that the main reason for its substantial growth is the expansion of the company's sales volume and the increase in profit margin. As the leading LED chip supplier in China, Huacan Optoelectronics achieved operating income of 506 million yuan in the first quarter, up 110.71% year-on-year. In the first quarter of 2017, the company's business income mainly came from LED epitaxy and chip sales revenue, with LED chips. The industry's recovery and the company's new capacity production and technological upgrading equipment efficiency, chip sales have also increased significantly, the company's LED chip business revenue has increased significantly compared to the same period last year. At the same time, the income of the sapphire business module of the Blue Crystal Technology acquired in the same period of the previous year was further increased, which further improved the overall income level of the company. The net profit attributable to shareholders of listed companies was 80.781 million yuan, a year-on-year increase of 681.13%. Aoyang Shunchang achieved operating income of 650 million yuan in the first quarter of this year, an increase of 120.33% over the same period of last year, mainly due to the acquisition of part of the equity of Jiangsu Luwei Lithium Energy Co., Ltd., which was added to the scope of consolidation and increased lithium battery. Business revenue, while LED and metal logistics business revenue also increased. During the reporting period, the net profit of the shareholders of the listed company was 638.803 million yuan, an increase of 63.98% over the same period of the previous year, mainly due to the year-on-year improvement of the LED industry and the contribution of the new lithium battery business. Currently, Mulinsen, who is in the leading position in the domestic LED market in the LED packaging business, has long been focusing on the R&D, design and production of LED packaging and application products. Currently, the products cover SMDLED, LampLED and LED application products (LED lighting and others). In the first quarter of 2017, Mulinsen achieved operating income of 1.536 billion yuan, an increase of 87.36% over the same period of last year. The net profit attributable to shareholders of listed companies was 133 million yuan, an increase of 162.7%. Next, the company will continue to maintain its advantages in the LED packaging business, and continue to extend to the upstream and downstream of the LED industry chain, and strive to enhance the company's core competitiveness through industry chain integration. Second, the future: analysis of the upper, middle and lower reaches of the LED industry chain Data show that the LED industry chain is mainly composed of upstream chip manufacturing, midstream LED packaging and downstream LED applications. LED applications can be subdivided into LED lighting, display and backlight applications. Among them, due to the high technical content, nearly 70% of the profits in the entire industrial chain are attributed to the upstream chip manufacturing enterprises. The reason for the outstanding performance of LED concept companies in the first quarter of this year, according to the analysis, is mainly due to the improvement of the supply and demand structure of upstream and midstream products in the industry chain, and the substantial increase in demand for downstream applications. According to analysis by relevant industry research institutions, the LED industry is currently in a state of development of both supply and demand, and the phenomenon of short supply is continuing to occur, and it is expected that the economy will last at least 2-3 years. Among them, international companies such as Osram have said that LED chip supply is in short supply, LED chip makers Jingyuan Optoelectronics, Sanan Optoelectronics, Huacan Optoelectronics, Aoyang Shunchang and Dehao Runda have all indicated that the current demand for strong capacity is in short supply. In 2015, in the upstream chip field, the government canceled the subsidy for the new MOCVD, and the chip price dropped sharply. The related manufacturers faced huge losses. The major manufacturers cut production, and many small manufacturers were forced to withdraw. After that, the LED chips were replaced. Production capacity has shrunk dramatically. At the same time, the MOCVD machines in 2010-2011 are being phased out, and the number of models accounts for about 1/3 of the total. It is estimated that in the next 2-3 years, the annual phase-out will account for 5% to 10% of the current total capacity, about 5 million- 10 million pieces. With the increase of downstream lighting demand by more than 20% and the shortage of small-spacing demand, the annual demand for new LED chips will increase by 10 million. According to statistics, the total effective capacity at the end of 2017 will be about 83.28 million pieces, and the demand will exceed 92.35 million pieces. Therefore, the industry expects that the supply will continue to be in short supply in the next 2-3 years. In addition, after the industry reshuffle in 2016, the industry concentration in the midstream packaging sector increased from 39% in 2015 to 43% in 2016. At the same time, there was a sharp decline in the number of packaging companies and a contraction in overall capacity. The strong demand for products in the downstream application market has driven the market demand for LED packages in the middle. It can be seen that the demand for downstream applications has grown rapidly in recent years, and the penetration rate of LED lighting has risen rapidly, reaching 42% in 2016, an increase of 10%. Moreover, with the rapid growth of the market for small-pitch LEDs and LED products. With the expansion of the application field, it is expected that the demand for downstream applications will continue to grow steadily for a long time to come. On the other hand, global LED manufacturing is now showing a general trend of shifting to China. Based on this, some industry analysts believe that China's electronics industry has fully possessed excellent process control and cost management capabilities over the years, and the engineers' dividends are gradually being released, prompting Chinese companies to develop and own more independent intellectual property rights. International advanced technology. With the slowdown in the technological advances of international manufacturers, Chinese companies will have the opportunity to make full use of national policies, industrial capital and engineer dividends to achieve post-production, with the goal of defeating traditional international giants. Attachment: Comparison of revenue and net profit of mainland LED listed companies in the first quarter of 2017

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