The top of the industry chain is controlled LED industry is now pricing worries

April 18th, alto electronics Chau Ming technology and successful too, will be landing small board and gem, A-share market A led sector will also add two new army.

With the two companies in Shenzhen who have much in common: on the same day, the total assets will be similar, belong to the LED industry, the main business is LED full color display manufacturing, plans to raise funds are basically the same, even to raise funds to invest are basically the same. However, many of the same points, alto electronics and Chau Ming Technology profitability are very large, the business income is small but high profit margins, although the latter has the former 2.27 times revenue, but net profit obtained is the former 1.16 times.

"Since 2010, a wave of crazy LED investment boom in capital market, including the various economic system, emerged from the laboratory for more than 20 years of LED finally is about to usher in the spring, however, wafer, LED chip manufacturing industry chain top oligarchs control and the middle and lower reaches of encapsulation, application pack and contrast. "Guangzhou one of the electronic components industry researcher told the" China business newspaper "reporter, alto electronics, Chau Ming technology and other domestic LED applications manufacturers are faced with the same problem: Rush too much money makes LED industry intense competition, applications are subject to the top of the industry chain control, difficult to obtain pricing.

Equal pay for work"

Competitors in the same industry over the same day will be a byproduct of A shares expansion. In February 28, 2011, the same as the PCB board of Ellington electronics manufacturing and Beijing Electronics will be originally on the same day, but for other reasons but Ellington Electronics was canceled the audit. And in April 18th, the same as the LED industry and Alto electronics Chau Ming technology are lucky enough to succeed in this.

In the two IPO prospectus (draft report) appeared an interesting phenomenon: the state of science and technology in 2010 revenues 501 million yuan, net profit of 56 million yuan; the Alto electronic 2010 operating income of 220 million yuan, net profit of 48 million yuan.

Chau Ming Technology for the main business of LED full-color display and LED lighting manufacturing, which in 2010 LED display system accounted for the main business of 93.27%, alto electronics for LED display system and electronic receipt bank manufacturing equipment, including LED full-color display accounted for more than 77.8%, that is to say, the two companies in 2010, the main business income in the vast majority of sources however, according to the revenue data, Chau Ming technology with a net profit of 2.27 times revenue only for Alto electronics 1.16 times.

The two companies did not specify the detailed classification of the classification of the net profit generated by business classification. LED display business of the two companies is different, Chau Ming technology is a large outdoor display pure manufacturing enterprises, and the Alto electronic display system is made, the former low margin, the latter includes large display manufacturing, which makes the control system display the normal operation of the manufacturing, the higher gross margin. The researcher said, however, this factor still can not explain the huge difference in net profit.

According to the state of science and technology prospectus (draft report), LED display in 2010 produced a total of 44700 square meters, the average sales price of 10427 yuan / square meters, that is to say, the LED display business in 2010 generating a total sales revenue of 466 million yuan, accounting for 501 million of main business income of 93.27% yuan, the company's consolidated gross profit margin was 24.94%; and the Alto 2010 the main business income, LED display sales revenue of 172 million 700 thousand yuan, accounting for 77.8%, gross profit margin was 44.70%.

According to the Alto electronic prospectus (draft report), the proportion of bank electronic receipt system 22.2% of the gross profit margin was 36.46%, the main business gross profit margin was 44.70%, that is to say, the bank electronic receipt system Alto electronics pulled down the overall gross profit margin.

According to the well-known LED enterprises in Zhejiang sunshine lighting (600261.SH) board secretary Wu Qingyi introduced in the LED product cost, wafer, chip high proportion of LED is difficult to reduce the price of the main reason, but the technical threshold is the numerous domestic chip companies can not match, "in general, household and industrial LED lighting products the cost of chips accounted for about 4 into, and landscape lighting chips accounted for more high. Wu Qingyi said.

Alto electronics and the state of science and technology of the top five list of suppliers is the best embodiment of oligarchy. From 2008 to 2010, Huizhou CREE Electronic Co. Ltd is the largest supplier of the two companies, which, in 2010, Huizhou CREE accounted for Alto electronics, Chau Ming Technology purchases in 19.16% and 12.75%, at the same time, purchases are increasing year by year.

Public information shows that Huizhou CREE is a wholly owned subsidiary of CREE in the United States, CREE is the world's largest supplier of LED chips.

The substrate of the upstream industry, epitaxial materials manufacturing, technology and capital intensive industries.

Global MOCVD equipment manufacturers in the presence of two strong monopoly situation, Aixtron and Veeco's global market share of more than 90%, Nippon Sanso company's production equipment is limited to domestic sales in japan. Core equipment MOCVD supplier supply capacity is becoming the bottleneck of LED capacity expansion.

Midstream industry

The difficulty of chip manufacturing in the middle reaches of the industry is second only to material preparation, and the barriers to entry are high. At present, the core technology in the hands of large companies such as Cree and Osram.

Downstream industry

The chip package on the lower part of the chip is pasted and welded with the wire frame