Benefit of government procurement LED lighting three revenue this year amounted to 7 billion yuan.

Yuan Securities said, benefited from the MOCVD capacity is greatly increased, an optoelectronic estimated 2015 revenue grew 43% to 7 billion yuan, the kinetic energy may come from the government procurement LED lighting demand. An optoelectronic three production capacity from 170 sets of MOCBVD machines in 2014 increased to 270 in 2015. The new machine output efficiency is higher, so we estimated that in 2015 the 2 inch wafer production capacity will increase more than 130% of jordan. By the end of 2015, 2 inch wafer production capacity is expected to Jordan Sanan optoelectronics beyond crystal electric, become the world's largest indium gallium nitride (InGaN) wafer supplier (market share from 20-25%). Finally, although the company in 2015 revenue forecasts rather vague (only that will grow to double-digit rate up), but the market is generally expected in 2015 revenue grew 53% to 7 billion 400 million yuan, mainly considering its substantial expansion plan.

2015 estimated net profit is expected to increase by 36% to 2 billion yuan, with the market leading standards, earnings growth attractive: cost saving measures in support of management, estimated 2015 gross margin will be relatively flat. However, depreciation costs are rising, and substantial expansion may also lead to the average price of the chip to accelerate decline. In view of this, a conservative estimate Sanan optoelectronics 2015 gross margin will be 41.6%, lower than the 2014 forecast of 43%.

Management did not provide for the 4 quarter of 2014 earnings report, but the market expects the company's revenue is expected to grow by the quarter of this year's growth of 40% (the center is expected to grow by an average of 5%). If an optoelectronic 2014 4 quarter earnings better than the market optimistic expectations, while short-term stock price might be pulled.

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