LED lighting continues to soar brokerage promising sunshine lighting prospects

Yankon 2014 operating income of 3 billion 251 million yuan, an increase of 2.59%; operating profit 312 million yuan, an increase of 187.17%%; attributable to shareholders of listed companies net profit of 288 million yuan, an increase of 24.31%; net profit after deduction of non 264 million yuan, an increase of 40.80%; realize the basic earnings per share 0.30 yuan, an increase of 25%.

The company's profitability continues to improve, the cost remained stable. Although the company in 2014 operating income growth is low, but the overall gross profit margin increased by 3 percentage points compared to 2013 to reach 24%, which is the best level since the listing of the company. Sub products, the company energy-saving lamp product gross margin was 21.20%, compared with the same period last year increased by more than 2 percentage points, mainly due to the company's sales of high margin selective lamps, to partially offset the negative impact caused by the decline in revenue. At the same time, LED lighting products, gross margin has improved, compared with the same period last year increased by 1.66 percentage points to 26.46%, gross margin level among similar products in the industry.

Thus, in the general lighting market competition, the company is still able to continue to improve the profitability of products, the company showed excellent product quality and good cost control ability, so as to ensure the company's leading position in China's lighting industry. In terms of cost, due to the temporary use of the company to raise funds to supplement working capital, thus significantly reducing the company's financial costs. Moreover, the company's sales costs have been effectively controlled during the reporting period, the company in 2014 and the cost of the same period in 2013, showing the company's good cost management capabilities.

LED lighting continued to soar, becoming the backbone of the company to support growth

2014 LED lighting revenues continue to maintain rapid growth, revenue growth of more than 65%, accounting for more than 50% of revenue. Therefore, LED business in terms of both the size of the revenue or profitability has been beyond the energy-saving lamp business, to become the backbone of the company's performance growth.

Dongxing Securities believes that the company's LED business has been able to maintain a good development of LED lighting in the fierce market competition, mainly due to the company's products for export business strategy, in 2014 the company's overseas revenue accounted for nearly 80%, the main customers include PHILPS, OSRAM, GE, lausebin international lighting manufacturers and distributors. The biggest advantage of the overseas market is a good competitive environment, product price stability. As of February 2015, the global replacement of 60W and 40W incandescent LED prices were $16 and $12.2, similar products in China were $13.8 and $4.9, respectively, the world average of 86% and $40%. Thus, LED lighting products overseas market price is higher, the profit level is better. In view of the global LED lighting market is just emerging, there is still much room for growth, the rapid development of the company's LED business will continue to benefit from the overseas market and higher product yield, achieve rapid growth so as to drive the performance of the company, maintain a leading position in the industry.

Deep industry continues, intelligent lighting set sail

The company plans in 2015 to continue the development of independent brands, increase the product investment and promotion efforts, using their own old lighting enterprises accumulated in the channel and brand advantages to expand the domestic LED lighting market share at the same time, through mergers and acquisitions integration continue to strengthen the channel network construction company in China, penetrate into professional lighting segments. Moreover, the company is using its own research and development experience in LED lighting accumulated into the field of intelligent lighting. Intelligent lighting is extended based on the application of LED lighting, lighting by manufacturers, system developers, Internet companies, such as household electrical appliance enterprises cooperation to realize intelligent control of lighting, in enhancing the convenience of users to meet the demand of saving energy at the same time, to increase the added value of LED lighting products.

In the national government ban white and LED lighting products prices fall under the dual drive, the global LED lighting market ushered in the golden period of development. The company as a leading domestic lighting industry in overseas market enjoy high margin at the same time, also use their own brand and channel advantages and actively expand the domestic market, and through intelligent lighting into the field to explore new development model. Dongxing securities expects the company in 2015, 2016 and 2017 respectively, operating income of 4 billion 76 million yuan, 5 billion 227 million yuan and 6 billion 883 million yuan, net profit of 393 million yuan, 514 million yuan and 670 million yuan, EPS were 0.41 yuan, 0.53 yuan and 0.69 yuan, corresponding to P/E were 30.79 times, 23.52 times and 18.04 times.