LED listed misappropriating end

Listed only six months, REFOND announced the results of pre cut 15%~30%. In addition, the company has been listed on the LED listed companies have also announced the 2011 Annual Results decline.

The industry believes that, after two years of explosive development, LED whole industry chain has shown overcapacity trend, reflected in the relevant financial statements of listed companies, is the decline in gross profit margin, performance growth landslide. However, intriguing is that a large number of shares break at the same time, many LED companies IPO enthusiasm has not diminished. Riyadh, photoelectric distance, Jufei, rectangular lighting, a large number of new shares will continue to enter the LED series of IPO stage.

Get together listing of LED shares, to investors is a pie or a trap?

Remote photoelectric: performance landslide before selling equity

Remote photoelectric main LED testing equipment manufacturing, the current A-share market listed companies, and no comparable A. Data show that the current proportion of domestic and international LED remote sensing equipment market share of half.

In the prospectus, the prospect of photoelectric distance to the LED industry to describe the full of praise, also said the leap forward development of the domestic LED industry is the foundation to quickly improve the performance of the company. However, in 2011 the international LED product prices plummeted, the deterioration of the industrial environment, the performance of many industry giant landslide, which may affect the distance from the photoelectric, the company did not elaborate.

From a number of brokerage research report shows that after 2010, in 2011, the rapid development of the domestic LED industry chain has shown an excess trend. Investors can not help but wonder, the overseas industrial chain unrest will not be transmitted to the remote photoelectric body?

Capacity can digest

2010 far from the level of photoelectric revenues, earnings levels increased more than doubled. However, in 2011 the company's performance has been difficult to continue to maintain strong momentum, the first three quarters of 2011, the company operating income of $140 million, only slightly larger than the results in 2010.

The distance behind the photoelectric performance increase decline, the international LED product market has been showing a miserable conditions.

A brokerage industry analyst, said the country is currently under construction in the super large LED projects have more than 50, with a total investment of more than 200 billion yuan. Although local governments to introduce tax incentives, policies and measures to promote a variety of measures to promote LED projects, but the international LED product prices plummeted, the investment impulse caused by the inhibition of enterprises. Although many projects invest 3 billion ~40 billion yuan, but the actual progress is slow, some projects even into stagnation. "

LED testing equipment industry, belonging to the industry chain in the cross sub industry, especially sensitive to changes in the industry boom. These analysts believe that in 2010 China's large number of new LED chip production lines, packaging production line was completed and put into operation, directly stimulating the demand for related testing equipment. In the future, if the international LED product prices can not be quickly improved, the speed of the domestic LED related production lines will further slow down the development of conduction to the distant optoelectronics, the market does not rule out the possibility of shrinking.

In fact, according to the prospectus tips, far from the photoelectric IPO funds to invest in the expansion of LED testing equipment capacity, the expansion of new production capacity will be 1.5 times the current capacity.

LED industry to rely on high investment to achieve high growth, once the investment cooling, the industrial environment turned cold, the expansion of the expansion of remote optical IPO expansion capacity, and can be digested by the market?

From selling products to selling equity

Compared with the majority of funds because of lack of equity financing of enterprises, far from the seemingly bad money.

According to data disclosed in the prospectus, as of September 30, 2011, far from the photoelectric bank deposits up to 114 million yuan. December 31, 2010 corporate deposits is as high as 135 million yuan, accounting for the proportion of total assets up to $76%.

According to the IPO prospectus is expected to target, 1500 sets of LED testing equipment expansion project intends to invest 115 million yuan, R & D center invested $48 million, sales network invested $15 million.

The company's bank deposits up to 114 million yuan, coincidentally LED test equipment expansion project is quite. Its own funds can solve the expansion of the capital needs of the production, but far from being listed in the light of the financing of listed companies, so that the industry can not understand shouting.

The industry believes that industrial investment is becoming increasingly difficult, and the LED industry is in the collective decline in the industry inflection point, sell equity is obviously better than selling products to make money". As a typical family business, after the huge wealth of IPO stock financing value-added, it seems that the actual controller Pan Jiangen, Meng Xin couple coveted fat". At present, the pan and the couple through direct and indirect holding a total of more than 60% of the total stake in the Far East, is expected to complete the IPO will still be an absolute stake in the company to achieve a controlling stake of 70%.

Distant photoelectric is expected to raise 170 million yuan, a total issue of shares of the shares of the stock market shares will be more than $20, the wealth of the pan family through the two market will reach billions of dollars to reach the level of amplification.

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