Under intense competition LED industry two companies net profit growth unexpectedly

Sanan optoelectronics yesterday notice in 2011 net profit growth will reach more than 110%, many people even call that. Coincidentally, the same in the LED industry KingSun also forecast net profit will grow 50%~60%. This overcapacity in the LED industry, intense competition, it seems quite unexpected.

The net profit of Sanan optoelectronics contains a large amount of non recurring gains and losses, it is difficult to estimate the value growth in 2011, but pointed out that Sanan Optoelectronics in the performance forecast, net profit growth, is the production conditions and equipment gradually improve production and produce benefits, resulting in the main business net profit grew by a large margin. This shows that growth is mainly due to the company's main business.

This growth is Out of the Blue Sanan optoelectronics industry as a whole, difficult situation, packaging factory to make money. In the Chinese government subsidy policy, a large number of enterprises into the LED industry, there are still many production capacity is not released. Due to fierce competition, product prices have been declining. Statistics show that in 2011 China's LED output is expected to reach 154 billion yuan, an increase of 22%, while output grew by more than 50%.

The industry said an optoelectronic chip business has been growing faster, but the application of business, said the three quarter inventory is relatively large. It is speculated that the replacement of the general manager with this or a relationship. And the whole China LED optoelectronics industry, great progress has been made in the past two years, Sanan Optoelectronics Technology and scale advantages have obvious.

KingSun is expected to net profit year-on-year growth of 50%~60%. The company staff said, the company net profit growth, because the outdoor LED lighting products market and LED indoor commercial lighting market started, because some of the Guangdong provincial government and the Dongguan government's preferential policies, the market was started feeling".

"Get more KingSun government projects, such growth is not surprising. Shenzhen poly Industrial Co., Ltd. chairman Xiao Ling think, but the whole industry is not so good growth.

Xiao Ling believes that in 2012 the market will appear explosive growth depends on national policy, because there is no active Chinese consumers energy conservation. However, these analysts are optimistic that the next two years is a good time for the industry, but the industry reshuffle is inevitable".