2013 LED industry, the 5 quasi reorganization of the company

Winter, excess, shuffling into the current LED industry keywords. LED industry in 2012 was not as expected, ushered in a complete pick up, still in the bottom of the trek. Financial problems plagued many LED companies. 2013 LED industry will spring, the industry to accelerate integration?

Mao power supply: market downturn led to lower than expected performance

Mao power released in 2012 three quarterly. Three quarter the company achieved operating income of $133 million, down by 4.54%, attributable to shareholders of listed companies net profit of $8 million 210 thousand, down by 39.67%;

The first three quarters of total operating income of $373 million, down by 12.92%, attributable to shareholders of listed companies net profit of $37 million 820 thousand, the company expects net profit attributable to shareholders of listed companies for the year 2012 4835-6447 million.

Event review

Due to domestic and international economic environment downturn, the electronics industry as a whole in the third quarter of this year is not the busy season, which makes the consumption of electronic power supply business of the company has a large negative impact, this is the main reason for the decline in performance of the company during the reporting period. Future Ltd LED driver power supply business profit contribution rate is expected to further improve, help to improve the overall profitability of the company's business.

Equity incentive plan (revised). In accordance with the conditions of the object to unlock the company's net profit for the next 3 years, the average annual growth rate of more than 20%. Analysts believe that the implementation of equity incentive plan helps to improve the corporate governance structure, is conducive to the sustainable development of the company, help to improve the performance of the company's rapid growth in the future certainty.

Because of the downturn in the downstream market and can not see signs of improvement in the short term, analysts lowered the company's earnings expectations. As a domestic LED lamp drive power leading manufacturers, the company will benefit from the long-term development trend in domestic and international major energy-saving emission reduction, vigorously promote green lighting, analysts expect 2012, 2013, 2014 EPS were 0.56 yuan, 0.75 yuan, 0.99 yuan, the corresponding PE is respectively 29.21 times, 21.7 times, 16.45 times, to maintain the recommended rating.

Honglitronic: steady growth, gross margin remained stable

Event

In October 23, 2012, honglitronic announced in 2012 3 quarterly. The report shows that in the first three quarters of the company achieved operating income of 395 million 780 thousand yuan, down by more than the same period last year, net profit attributable to shareholders of the parent company of $45 million 240 thousand, down by 11.58% over the previous year. 2012 in the third quarter, the company achieved operating income of $138 million 540 thousand, an increase of 6.68%% over the same period last year, net profit attributable to shareholders of the parent company of $13 million 960 thousand, down 0.14% over the previous year.

Comment

Income, profit growth performance is stable, affected by industry factors, but also the impact of the company's own delivery room relocation. 2012 first three quarters of the company's revenue growth performance, in which revenue fell by 1.70%, net profit fell by 11.58%. In addition to industry factors, the company moved to the new industrial park office in 2012, in the course of the relocation due to weather, equipment installation, commissioning and other reasons, resulting in the release of LED packaging capacity was affected by the impact of the. These factors led to the first three quarters of 2012, the company's operating income, net profit over the same period last year, a certain reduction.

Gross profit margin declined slightly, but remained at a high level. Company 2012Q3 gross margin fell 0.07 percentage points, down by 2.12 percentage points. LED packaging industry in a number of listed companies have carried out a substantial expansion of capacity, so analysts expect the price decline pressure still exists.

A variety of policy incentives, LED lighting demand gradually asymptotic. In February 27, 2012, the Ministry of finance economic construction department, the national development and Reform Commission resource conservation and environmental protection department, Ministry of science and technology of high-tech development and industrialization department issued two 2012 semiconductor lighting products financial subsidies to promote project tenders, tender content covers the interior LED lighting products and outdoor LED lighting products. MIIT issued the electronic information industry planning in 12th Five-Year, also made it clear to promote LED, energy-saving lighting products. Analysts expect most of the bidding will be successful by domestic manufacturers, domestic manufacturers have a positive impact.

May 28, 2012, the Guangdong provincial government issued the "Guangdong province to promote the use of LED lighting product implementation plan". From the date of implementation of the project, the province's roads, public places, government agencies, state-owned enterprises or state-owned financial capital investment in the construction of lighting engineering as well as Nansha, Qianhai, Hengqin new district shall use the planning and construction of LED lighting products, the original non LED lighting products renovation work, should strive in Pearl River Delta region by the end of 2013, the completion of the North East region before the end of 2014. To achieve the province's caliber under the lighting energy saving more than 50%, pulling the LED industry in 12th Five-Year to achieve annual output value of more than $500 billion. Program requirements, all items used in the LED lamps must be recommended by the Guangdong LED benchmark system catalog products. At the same time, encourage the use of EMC model.

With the decline in the cost of chips, domestic and foreign policy incentives, LED lighting in order to moisten things silently start. Among them, the Guangdong market in the first position in the domestic, for honglitronic enterprises in this province that is more favorable.

Earnings forecasts and investment ratings. Analysts expect 2012-2013 EPS was 0.30 yuan and $0.40. According to the closing price of 7.18 yuan in October 23, 2012, the corresponding dynamic PE for the next two years were 24 * and 18 *. The company is a LED package in the plate of a more qualified company, if the lighting starts, the company will