LED packaging business Q2 first pick up

Due to excessive investment in the early stage, LED industry overcapacity problem has not been resolved. After entering in 2013, with the arrival of the tender period, the performance of the middle and lower reaches of the company to take the lead, the upstream company is still in excess capacity digestion dilemma. LED industry has emerged 'upstream of the upper reaches of the meat soup' situation.

"One side is the flame, and the other is the sea". Due to excessive investment situation in the short term is difficult to change, the first quarter of this year, the performance of LED upstream chip manufacturing companies continued weakness, including industry giants, Sanan optoelectronics company's operating income and net profit decline; while LED in the downstream packaging of listed companies and application of listed companies emerge, a quarter of KingSun, Chau Ming technology etc. LED listed companies net profit turnaround.

LED industry generally in the first quarter of the tender, the two quarter of production, which is part of the first quarter of the LED plate losses the main reason. Subdivision, LED upstream chip manufacturing companies vulnerable to overcapacity and external competitive impact, while the downstream packaging business is relatively stable, will usher in the first round of performance reversed. National securities Fu Yuepeng told the new financial reporter.

Chip companies slump

At present, LED plate in about 20 companies, including upstream chip manufacturing changelight, HC semitek, Silan, nationstar; in the downstream packaging and application fields including rectangular lighting, KingSun, REFOND, Chau Ming technology, Jufei; industry chain companies have Sanan optoelectronics and two elec-tech.

From HC semitek, Silan and other chip manufacturing listed companies last year and the first quarter of this year, earnings, operating income and net profit of these enterprises were significantly decreased.

China Optoelectronics last year to achieve operating income of 330 million yuan, compared with the same period in 2011 fell by $30.38% to $470 million, attributable to shareholders of listed companies net profit of $87 million 338 thousand and 600, compared to the same period in 2011, a decrease of 124 million yuan.

HC semitek said, after a few years ago the chip investment peak, chip production capacity has reached a relatively high, although the LED chip market scale also has amplification, but the increasing capacity of the leading contenders to take the price competition strategy of radical, makes the product price greatly reduced, resulting in the overall decline in gross profit level of the industry.

Public information, the two main products can be LED photoelectric blue chip blue chip and LED green chips last year to achieve operating income compared to the same period last year declined, the decline rate was 22.14% and 37.95%.

In the first quarter of this year, the performance is still not ideal, the operating income of 43 million 515 thousand and 800 yuan, down by 58.19%, attributable to shareholders of listed companies net profit of $17 million 308 thousand and 200, down by 37.11%.

As one of the leading LED chip manufacturers, China can be a typical downturn photoelectric. In fact, although the upstream LED chip market demand has been expanding, but due to blindly support several years of policy, so that the chip production equipment utilization rate of MOCVD decreased gradually, LED upstream chip industry overcapacity in the short term is still not reduced.

In the past, the 2009 Yangzhou municipal government introduced the first cash subsidy policy MOCVD, to give financial subsidies for one-time purchase of new LED wafer production equipment more than 5 sets of MOCVD new or expanded projects, followed by Jiangmen, Wuhu, Hangzhou, Wuhan and other local governments have a similar policy. According to LED professional research institutions LEDinside statistics, as of the end of 2012 the number of Chinese MOCVD equipment has more than 900 units, but in 2012 China's MOCVD capacity utilization of less than 50%. According to statistics, a total of 2009-2012 years, the establishment of a new LED epitaxial chip project totaling 65, but due to the harsh market environment, more than 3 of the project has been withdrawn or shelved.

"Remove the factors of chip production equipment excessive, domestic chip manufacturing corresponding market is still relatively low, which is another cause of overcapacity, if the index is improved through the development of technology, in the high-end market to 'share', will greatly alleviate the problem of excess production capacity. Fu Yuepeng said.

Flash flash

Compared the performance of the company's upstream downstream industry is weak, LED in the first quarter of this year appeared to pick up signs, including the middle chip packaging REFOND, many listed companies Jufei and downstream chip applications Chau Ming technology, alto electronics, a quarter net profit surge.

REFOND 2012 operating income of 500 million yuan, an increase of 71.63%; attributable to shareholders of listed companies net profit of 46 million 864 thousand and 800 yuan, an increase of 50.03%; a quarter of this year the company's continued growth, operating income rose 62.62%, net profit rose 71.87%.

It is understood that the lighting LED and large size LED backlight is the two major products Ruifeng optoelectronics, sales of the top two products in 2012 totaled $460 million, accounting for 92.51% of total revenue. The benefit from increased LED in the first half of 2012 LCD TV market penetration, the company increased the TV backlight market investment, large size LED backlight operating income rose to 183 million 475 thousand and 500 yuan, up 169.31%.

Downstream, LED chip application Domain company Chau Ming technology last year, operating income of 608 million yuan, an increase of 14.21%, net profit of $22 million 700 thousand, down by 50.33%, poor performance. But the company in the first quarter of this year to fight a battle to achieve operating income of 148 million yuan, net profit of $4 million 240 thousand, respectively, up by 75.61%