Poly fly optoelectronics: how to achieve high growth year after year?

Poly fly optoelectronics is a small size backlight business leader in the middle reaches of the LED industry chain, the results of the first half of the annual report released in the near future than expected. The company's core advantages, leading the industry in small size backlight, large size has become a new growth point; at the same time, the company entered the production of optical film products, lighting products in the outbreak period, the company has maintained a high growth and high profit, the cost rate remained stable, good cash flow performance.

Jufei recently released the first half of 2014 annual report shows that the first half of this year, Jufei revenues of 481 million yuan, 319 million yuan more than the same period last year an increase of 50.71%; net profit of 83 million 651 thousand and 200 yuan, 61 million 256 thousand and 800 yuan more than the same period last year growth of 36.56%, among them, LED backlight lighting LED revenue of 414 million yuan, 58 million 398 thousand and 600 yuan revenue, LED revenue of 7 million 63 thousand and 200 yuan. In addition, the data show that over the past 6 years, the company's revenue and net profit CAGR of 48% and 34%, respectively.

Jufei SMD LED is committed to product development, production and sales, products with LED, chip light emitting side emitting, TOPLED, high power LED, with small size to large size of display backlight LED solutions, and LED lighting solutions.

The company is a small size backlight business leader, the domestic market share in more than 30% companies, the accumulation of high-quality customers, the use of advanced technology and efficient management of the implementation of the development strategy to the large-size backlight device, optical film business horizontal expansion. 2013 revenue of 750 million yuan, net profit of $130 million, an increase of 42.7%, of which the backlight LED devices accounted for about $83% in revenue in 2013, gross profit accounted for 88%.

The company's core strengths

Poly fly revenue continued to maintain high growth and high gross profit margin, the domestic market share of more than 30%, mainly due to: 1) excellent product quality. NPL ratio is only 1%, the packaging industry NPL ratio is the most critical factor, the NPL ratio increased by 1% relative to the gross margin decreased by 3%. Due to the quality of the best industry, so the price is higher than domestic counterparts; 2) excellent inventory management. Provide three months rolling forecast to suppliers, implement JIT delivery on the client side, shorten logistics cycle. The company's general product delivery within three days, non GM products within seven days of delivery. The company's inventory turnover is significantly better than peers, LED product prices have continued to decline in pressure, inventory turnover rate also affect the product gross margin; 3) high gross margin of small size backlight accounted for the highest.

Jufei to direct sales, the main entry terminal brands of all kinds of domestic supply chain: small size customers ZTE and HUAWEI, Lenovo, Yulong, Malata and South Korea enterprises, large size customers include SKYWORTH, Hisense, Changhong, Konka, TCL, gold, CAI; lighting device customers Qinshang, Zhou Ming, Alto, Abison, Cape and sunshine.

Packaging industry is a typical cost driven industry, effective cost control capability is the embodiment of excellent packaging company competitiveness. Cost control is mainly reflected in: production costs, logistics costs, and management costs. From the application end demand, small batch, customized, and customer requirements for short delivery cycle is its characteristics. The packaging industry is the cost of 40% chips, poly fly lower than international prices of 15% major purchases of domestic products; 20% is the cost of support, close to the purchase price and the cost of domestic hydropower; artificial advantage remaining obviously. In 2013 by virtue of the high cost for the first time in Japan and South Korea business orders.

Small size backlight industry-leading

Small size panel is the use of 3-20 LED in the 8 inch products, the classification of market in recent years continued to boom, IDC research report recently that the global intelligent mobile phone did not show signs of stagnation, but is showing explosive growth momentum.

The second quarter of 2014, the global intelligent mobile phone shipments reached 295 million 300 thousand, an increase of 23.1% over last year's 240 million, China manufacturers were particularly outstanding, ranked third in the second quarter of this year, HUAWEI intelligent mobile phone shipments to 20 million 300 thousand year-on-year growth of 95.1%, the market share from the year 4.3% to 6.9% shipments of 15 million 800 thousand row; a 38.7% increase in fourth Lenovo, the market share of 4.7% from the same period last year to 5.4%.

Jufei in recent years continue to go beyond the competitors at home and abroad, mainly due to the transfer of production trend, the domestic panel factory nearest matching backlight demand increases, domestic enterprises gradually replace Japan and Korea; while the market size increases, mainly from the intelligent terminal and high-definition big screen trend by increasing the amount of single lamp, increase the demand for small size backlight device and other tablet computer terminal thin trend; in addition the company is implementing the internationalization strategy, because the products accounted for 52% of the super bright series of outstanding quality, competitive price, Korean enterprises Taiwan enterprises a number of well-known industry has been seeking cooperation with the company.

Domestic LED packaging companies are actively layout of small size LED backlight areas, will increase the company's competitive environment of small size LED backlight, resulting in gross profit margin continued to decline: REFOND buy 15% shares Ling Tao photoelectric starting small size backlight; Dongshan precision plan until the end of 2014 will be in the small size LED backlight expansion to 300-400KK/ months; Siu Chi shares plan layout of small and medium size LED backlight business.

Large size as a new point

Size of 20 inches or less, the use of 20-100 LED products; large size of more than 20 inches, the use of 100-500 LED products. China's large and medium size backlight industry steady growth, is becoming the world's largest LCD panel production capacity expansion.

Two hundred and one