Three factors hinder the profitability of LED company

As of July 24th, SWS LED plate 20 companies, there have been 18 companies released the semi annual results in 2013 notice. Among them, there are 8 companies in the first half results rose, the performance of the 8 companies fell, accounting for 50%.

Since April of this year, LED business situation gradually pick up, the capital market LED plate collective agitation. After the early rise, LED sector to enter the industry to support the performance of the basic stage of the cash. From the first half of the performance prediction disclosure, LED LCD TV popularization in large size backlight market demand for rapid growth, commercial lighting and indoor lighting needs outbreak, start for the growth performance of listed companies to provide support. But the price war, cost growth, government subsidies and other factors have affected the performance of listed companies to honor.

18 LED company, yejiyuzeng is the biggest silan. The company expects first half net profit increased by 250% to 300%, its growth performance not only by promoting LED lighting needs improvement, but also benefit from the intelligent terminal market growth, the company's power management IC, chip discrete devices, power devices and other finished products shipments have increased greatly, which makes the the company an important subsidiary of Hangzhou Silan integrated circuit limited capacity utilization has been greatly improved, the chip production line and power device packaging line profitability has been greatly improved.

Jiawei shares earnings growth ranked second, is expected in the first half year net profit increase of 214%-243%. However, the company net profit of only 3 million 350 thousand yuan a year earlier, lower base. In addition to its performance growth benefit from the significant increase in the new LED lighting business, but also benefit from the continued growth of traditional lawn lights and other services.

Generally speaking, to improve the fundamentals of the LED industry to bring the company's revenue and profit growth, but excessive competition leads to the industry price war, increase in investment cost increases in a certain extent in the cash profits of listed companies, a considerable part of the company had no increase in interest income ", such as light, Lehman photoelectric, honglitronic etc..

In addition, the impact of government subsidies to reduce the impact of LED chip companies are also revealed. Elec-Tech is expected in the first half net profit fell 60%, mainly due to the company received government subsidies up sharply reduced. Industry leader Sanan optoelectronics did not disclose semi annual results notice, but its annual net profit depends largely on subsidy contribution can be expected to affect the performance of the first half of a large extent by the amount of subsidies.

Outlook in the second half, brokerage Research Report optimistic. Although the June Taiwan LED chip and packaging industry chain by 9.2% and 8.9% of total revenue, but China Merchants Securities believes that the LED industry is a normal off-season short-term cooling effect, in August after entering the season, the industry boom will regain their upward trend. In the second half of the consumer electronics and home appliances stocking intensity will increase the overall demand for backlight, and lighting demand is expected to return to normal after a short break.

Orient Securities also said that LED quarter data showed continued improvement in the chain, optimistic about the industry in the third and fourth quarters upward trend. Haitong Securities recently organized the LED industry trends Sharon believes that LED is in the early stages of the outbreak, the next 2-3 years will be completed from 15% to 60% penetration, and then completed within 1-2 years after the penetration of 60%-80%. This is similar to the penetration of smart phones, the rapid growth of the past two years, has reached 60% penetration. LED two years ago, the state of the intelligent machine.

SWS LED plate results of the first half of the list of companies notice

July 10th -7 24 LED industry operation:

1, Taiwan LED industry revenue fell slightly, but the strong growth in the second quarter

Taiwan chip and packaging industry revenues were reduced by 9.2% and a total of $8.9%, of which the major companies such as crystal electricity, light billion, respectively, showing a decline of about 10%. But from the whole Q2 industry, better performance, the chip crystal power plant and canyuan respectively rose 40% and 56%, the main packaging factory also increase 20%-30%.

The industry has the view that this is mainly the impact of the off-season, August will usher in the industry after the season, due to the low performance of the second half of last year, the second half of this year, the relevant performance of the company is expected to continue to increase year on year performance.

2, industry and company dynamics

Furi Electronics to high priced acquisition of Mai Rui photoelectric

In July 15th January, the suspension Furi electronic disclosure set by the program, the proposed public offering to specific investors not more than 50 million shares, issue price of 6.41 yuan / share, of which the largest shareholder Furi Group subscription ratio of not less than 38.76%. Fund-raising will be mainly used for the acquisition of 92.8% of the registered capital of sharp photoelectric ($34 million 150 thousand), as well as to supplement working capital.

Mai Rui photoelectric Shenzhen new and high technology enterprise specialized in LED display and LED lighting products R & D, production, sales and service in one of the last year and the first half of this year, respectively, to achieve net profit of 25 million 420 thousand yuan and 10 million 530 thousand yuan.

Siu Chi 500 million single flowers three

Sanan optoelectronics announced on the evening of 17 major contracts, its wholly-owned subsidiary of Anhui Sanan Siu Chi shares in July 17th and a wholly owned subsidiary of Shenzhen Siu Chi signed a "strategic procurement framework agreement", since the date of signing the agreement the next year, Shenzhen Siu chi to Anhui three total amount of purchase of 500 million yuan of LED chip this amount, accounting for about 3 billion 363 million of sales revenue in 2012, three optical 15%. For chip prices, an official said, since March, drop a price after the chip prices have been stable.

PHILPS new generation LED bulb holder