Crystal photovoltaic sapphire is not flowering period?

With the upcoming listing of iphone6, as well as the first batch of up to 70 million to the largest in the history of the Department of the news to stimulate, apple stocks heard machine dance. As early as iPhone5s on the sapphire glass will be installed on the Home glass, iPhone6 reportedly further, the full screen with sapphire glass. Domestic sapphire producers have eager for a fight, want a cup of soup. Crystal optics is the vanguard of this echelon.

In July 31st, crystal photoelectric release set by the plan, intends to 16.14 yuan per share price increases are not more than 75 million 670 thousand shares, raising 1 billion 221 million yuan for investment in the filter assembly expansion project, sapphire crystal and deep processing project and add liquidity.

The company is trying to catch up with the gradual warming sapphire application market, a good cup of soup. However, in fact, although the size of the sapphire application market is growing, but its prospects are not as good as the company vision. For the company, in the existing product structure, the company's revenue growth of sapphire LED substrate and other business gross margin was 31.24%, lower than other business gross margin. The external environment, like many other China emerging industries, through the expansion of the sapphire rush on like a swarm of hornets, sleeping huge production capacity, is already one of the red sea. From the company's open information, the company will increase the current expansion of sapphire, the main bet Samsung, Samsung has no longer the dominant position of the past, betting Samsung or will make the company into a passive. All these, all point to the fact that the company may finally green sapphire road.

Sapphire project gross margin low

According to the company announcement, investment of 586 million yuan sapphire crystal and deep processing project is a key project to increase investment.

The company said, after the completion of the project, will effectively extend the sapphire industry chain -- up from the current "LED sapphire substrate areas extending to the upper reaches of the" Sapphire crystal "field; downward, can expand the relevant sapphire window film market.

Daily economic news reporter noted that in recent years, the company's revenue growth in the business is more rapid, but the gross margin of business is not high.

Company's 2013 annual report shows that last year the company operating income of 626 million yuan, an increase of 5.27% over the previous year, net profit of $114 million, down by 22.66%. During the reporting period, sapphire LED substrate and other operating income of 111 million yuan, accounting for a total revenue of $17.68%, a smaller proportion.

That year, sapphire LED substrate and other revenue grew 100.64% over the same period last year. However, despite the impressive growth in operating income, but the gross profit margin is relatively inferior. 2013, the company's precision photoelectric thin-film components operating income of 514 million yuan, gross margin of $37.8%. Over the same period, sapphire LED substrate and other gross margin is only 31.24%. The company is also expected in 2014 annual gross profit margin of less than 30% sapphire LED substrate, the company's gross margin was $35%. This means that, with the gradual expansion of the scale of the capacity of sapphire, the company's gross margin will continue to decline, earnings per share will be a substantial decline.

Raise investment projects have been a red sea

LED market pick up is an established fact, sapphire in the field of smart phone applications gradually expand the prospects are more clear. However, the company's annual report in 2013 is still down the gross margin of the sapphire business in 2014, which is mainly due to the excess capacity sapphire.

According to the plan, the sapphire project will include the construction of an annual output of 1 million 200 thousand 4 inches of graphical LED sapphire substrate (PSS) production line, annual production capacity of 24 million pieces of sapphire window film production line and 80 kg class, with an annual output of 2 million 500 thousand mm (2 inch sapphire ingot by conversion) long grain production base.

Reporters noted that as early as the crystal photoelectric announced plans to increase fixed before tiantonggufen has just released a set by the plan, intends to issue 210 million shares, raising 2 billion yuan of funds, investment of intelligent mobile terminal application of large size sapphire wafer investment project. In addition, the company intends to raise 562 million yuan to invest an annual output of 3 million 600 thousand / month of 4 inch sapphire wafer expansion, is expected in October after the formation of the formation of a total of 300 thousand / month of 4 inch sapphire wafer supply capacity (existing capacity of 50 thousand / month).

Investment in the production of sapphire far more than crystal photoelectric and Tong Tong shares. GLII statistics show that only in 2011 the number of new LED sapphire crystal and substrate projects reached 26, as of the end of the three quarter of 2012, the number of new projects for the number of 14. Currently in the country to build sapphire crystal project capacity of about 2 inches sapphire substrate of 100 million / year, and the actual market demand is only about about 10000000. In 2012, China fleet from 2011 803 to 917 units, but the capacity utilization rate is only about 30%, about 50% of power rate, overcapacity phenomenon is very prominent, in 2013 the sapphire substrate price all the way down. In 2014, the company's gross margin forecast for the business side also confirms the uncertainty caused by overcapacity.

Samsung will fall into a passive bet

"The number of first order iPhone6 sapphire screen creates history, should be prompted many manufacturers direct factors of expansion, in Apple's lead, some other intelligent mobile phone giants such as Samsung, and domestic have spread to higher step by step, the use of sapphire screen, CITIC Securities on the recent expansion of sapphire boom case analysis.

From the point of view in the given increase plan, the company is aimed at the rapid rise of the market. Daily economic news reporter noted that before the announcement of the plan to increase