Rising costs decline in LED prices in the first half of weak growth

18, launched 10 to 10 to send 1 gaosongzhuan program of Lehman photoelectric opened trading closed, the public eye once again to focus on the LED industry. However, from the semi annual report of listed companies have been disclosed in the LED, the dual pressures of rising costs and falling product prices, the majority of the company's gross margin declined, the first half net profit growth is weak.

Look from the upstream and downstream industry chain, midstream packaging company net profit fell more obvious. Lehman photoelectric, Chau Ming Technology in the first half operating income rose 39%, respectively, year on year, but net profit grew only by 3.96% and 0.5%, respectively. The upstream chip companies, because of government subsidies favored, the inherent lack of growth, whether sustained growth has been questioned. As an optoelectronic first half of this year to achieve sales revenue of 719 million yuan, net profit of 459 million yuan, an increase of 97% and 127% respectively. But in the first half of its subsidiaries to reach 506 million yuan of financial subsidies, such as deducting the non recurring items, the company's net profit growth rate is negative.

On the whole, the rise in operating costs and product prices are the main reason for the weak growth of LED's profit. Lehman photoelectric said metal raw material prices and rising labor costs led to the rising cost of industry competition makes product prices continued to decline, the RMB appreciation has seriously affected the export of products gross profit level.

From the product price trend, the price of high-end LED device is greater than the low-end products. Statistics show China LED online, the first quarter of this year, a decline of large size and high power LED backlight device was more than 10%, while the three quarter of last year, the use of notebook computer backlight products prices in about 5 cents to stabilize. Affected by the market, in the first half, in addition to the gross profit margin of high-end lighting products in addition to the application of Lehman's gross domestic product grew by 29%, the packaging business and LED display business gross margin have varying degrees of decline.

Under the adverse circumstances of the industry as a whole, there are still companies through the timely adjustment of product structure, to achieve a substantial increase in profitability. Ruifeng first half net profit of 20 million 510 thousand yuan, an increase of more than 25%, operating income rose by more than 15%. REFOND said, mainly due to the company's gross margin year-on-year growth, is the second half of last year to focus on developing the LED lighting and large-size LCD backlight LED market, reducing the technical content is low, weak profitability display products accounted for. During the reporting period, the company's two major categories of products to achieve gross profit of $40 million 730 thousand, especially the gross margin of automotive applications LED up to 61%.

Insiders predict that LED commercial and home lighting applications is the second half of the rapid growth, LED production capacity will be transferred to high-end products, to meet the general lighting and large-size backlight and other high-end areas of the explosive demand. Although the brokerage report that the LED annual revenue growth of the industry will be more than 40%, but the listed companies have been aware of the risks they face. REFOND, Yankon, Thai and other companies in the semi annual report focuses on the industry competition led to price risk, said the transformation of the product structure is the most important issue facing the company.