Editor's note: The LED industry achieved an average increase in net profit of more than 50% in the first half of the year. Analysts believe that as the third light source revolution after incandescent lamps and fluorescent lamps, LED lighting is supported by major countries and regions in the world. At present, the global LED industry has entered a period of rapid development, benefiting from "money" Jing Guangming.
The mid-term report confirms the high growth of the LED industry
The just-disclosed mid-term report shows that benefiting from the driving demand for lighting, the LED industry has entered a period of rapid development. According to statistics, 21 listed companies in the LED industry (Shenwan Industry) achieved an average increase in total operating income and net profit of 34.4% and 54.13% in the first half of 2014 compared with last year.
Among the 21 LED industry companies, only one company, Qianzhao Optoelectronics, recorded negative growth in total operating income, while the others all recorded varying degrees of growth. Huacan Optoelectronics, which had the largest increase, achieved a total operating income that increased by 172.19% compared with last year. In terms of net profit growth, 14 companies achieved a year-on-year net profit increase of more than 20%, and 4 companies achieved a year-on-year net profit increase of more than double.
It is worth noting that the institution increased its holdings in a number of performance growth stocks in the LED industry in the second quarter. New holdings include Wanrun Technology, Nationstar Optoelectronics and Ledman Optoelectronics. The newly held shares are 3.9811 million shares, 3.4996 million shares and 2.3173 million shares respectively. At the same time, institutions increased their positions in Sunshine Lighting and other stocks in the second quarter.
Analysts said that the LED industry, which has recovered since the second half of last year, has maintained a positive trend in industry prosperity. Looking at the reasons for the performance growth of various companies, most of them are the growth of the main business due to the recovery of the market; and the general growth of the performance of LED listed companies has become one of the important factors for institutions to increase their holdings.
"With the increase in the volume of LED lighting, the pulling effect of LED lighting on the industry will become more and more obvious, and we continue to be optimistic about the industry's prosperity in the second half of the year." Liu Liang, an analyst at Industrial Securities, pointed out that the LED industry is accelerating year-on-year in the second quarter, indicating that as the proportion of LED lighting increases, the pulling effect on the entire LED industry has gradually emerged, and the future development is optimistic in the long term.
According to reporters, a securities industry researcher said that as the price of domestic LED lights dropped, the civilian market for LED lighting opened up. The penetration rate of LED lighting in 2013 has rapidly increased from less than 3% in 2012 to 6%. In 2014, LED lighting will accelerate the replacement of traditional lighting, and the industry will enter a period of rapid growth.
"Generally, the complete penetration cycle of electronic products is about 10 years. 2011 is the first year of LED lighting penetration. It is expected that high penetration will not be completed until at least around 2020." Industry insiders said that judging from the past experience of rapid penetration in other industries such as consumer electronics, investments in the first 3/4 penetration period have very good returns. With falling prices and a new round of global white ban upsurge, LED lighting has entered a period of accelerated penetration, and the LED industry has investment value in 3-5 years.
Focus on relevant “leaders”
As the most anticipated new generation light source in the world, LED is known as the most promising green lighting source in the 21st century due to its high brightness, low heat, long life, non-toxicity, recyclability and other advantages. According to data from the consulting agency IHS, since the second quarter of 2013, the demand for downstream LED lighting markets has increased beyond expectations, directly driving the release and utilization of midstream device packaging and upstream chips and epitaxial wafers.
Qilu Securities researcher pointed out that LED lighting is the third light source revolution after incandescent lamps and fluorescent lamps. Due to its many advantages such as energy saving, environmental protection, and wide application, major countries and regions in the world have strongly supported it. At present, the global LED industry has entered a period of rapid development. The global LED market size was US$12.4 billion in 2013 and will reach approximately US$150 billion in 2020, with a compound growth rate of 42.6%.
"As one of the world's major LED production and consumption countries, with the gradual advancement of policies and the explosion of demand, my country's LED industry faces major historical opportunities and will generate huge investment opportunities." Brokerage analysts pointed out that the investment gold mine in the LED industry is rich in changes in industry development trends. First, technological progress and industrial upgrading are accelerating, the application scope of LED products continues to expand, and the market size is expanding day by day. Second, demand activation and policy promotion have driven the entire LED lighting industry chain into a high-prosperity cycle. Third, the speed of industrial integration has accelerated significantly, and industrial concentration has gradually increased.
In terms of investment target selection, analysts suggest focusing on relevant "leaders", such as Aoyang Shunchang (fast release of production capacity), Xinhaiyi (leading technology in many parties, release of production capacity), Ledman Optoelectronics (unique LED growth path), Jufei Optoelectronics (leader in backlight, Horizontal expansion to achieve high growth) Sanan Optoelectronics (leading chip company, full industry chain layout), Sunshine Lighting (LED lighting leader, with stable profitability), Ruifeng Optoelectronics (leading white LED packaging), Nationstar Optoelectronics (MDLED packaging), etc.
Aoyang Shunchang (002245)
The company is currently entering the LED epitaxial wafer and chip R&D and manufacturing industry. The semi-annual report shows that Aoyang Shunchang's net profit in the first half of 2014 increased by 52.24% compared with the same period last year. In addition, the company also expects its net profit to increase by 50%-80% year-on-year in the first three quarters. The high performance growth expectations are due to the continued amplification of LED's performance contribution in the third quarter.
According to the semi-annual report, Aoyang Shunchang LED in the first half of the year? The business achieved revenue of 7410? Ten thousand yuan, the gross profit margin reached 39.23%, and the net profit attributable to the listed company was 19.37 million yuan, accounting for 28.3% in the joint statement; in the first quarter? And the second quarter? Achieve revenue of 2345 respectively? Wanhe 5065? Wan, second quarter? Revenue compared to Q1? An increase of 116%.
Xinhaiyi (002089)
Xinhaiyi, which has continuously expanded its business scope through external acquisitions in recent years, gradually released its LED production capacity in the first half of the year, with LED product revenue reaching 36.24 million yuan, a year-on-year increase of 248%. It is expected that all 20 of the company's MOCVD equipment will reach production in the third quarter, and the growth rate of LED product revenue will continue to accelerate in the second half of the year. The company expects net profit from January to September 2014 to increase by 70%-120% year-on-year.
The relevant person in charge of the company said that the LED epitaxial wafers and chips produced by the holding subsidiary Xinnajing are the most technically difficult and highly profitable in the LED industry chain. The release of production capacity has been gradually realized and will become an important growth pole for the company's development in the future.
Analysts pointed out that the company has transformed into multiple businesses such as optical communications, software outsourcing and services, LED, mobile games and video surveillance. In addition to the substantial growth of LED products, software and wiring are also expected to show a good trend: and as the LED and mobile game businesses begin to contribute business, the company will usher in a period of explosive performance.
Ledman Optoelectronics (300162)
The company is a leader in LED outdoor display technology, most of which are exported overseas. In June, it mass-produced and shipped the world's smallest pitch outdoor display. The financial report shows that in the first half of this year, Ledman Optoelectronics’ LED lighting and display product revenue achieved rapid growth of 100.1% and 25.7% respectively.
In addition, in the first half of the year, the company's wholly-owned subsidiary Lehman Energy Saving and the joint bidding company Dongguan Qinshang Optoelectronics signed a contract with the Municipal Central Management Station of Shishan Town, Nanhai District, Foshan City on the contract energy management procurement project for the energy-saving renovation of intelligent LED street lamps in the public lighting field of Shishan Town, Nanhai District, Foshan City, Guangdong Province. This marks that the company's energy management contract (EMC) service level has been recognized and has positive significance for the company's long-term development.
Jufei Optoelectronics (300303)
The company is the leader in domestic LED backlights and one of the companies with the best profitability, management efficiency and performance growth in the industry. In the past six years, the compound growth rate of the company's revenue and net profit has been 48% and 34% respectively. The financial report shows that benefiting from the rebound in the LED industry, Jufei Optoelectronics achieved a net profit of 83.65 million yuan in the first half of 2014, a year-on-year increase of 36.6%.
According to the financial report, backlight LED? It is the focus of Jufei Optoelectronics' revenue. On the one hand, small-size backlight products benefited from the increase in the amount of lamps used per unit due to the increase in smartphone screens and resolution improvements, resulting in a steady growth of 34%. On the other hand, large-size backlights continued to penetrate rapidly, with revenue increasing by 135% year-on-year.
Sanan Optoelectronics (600703)
The company is currently the largest LED epitaxial wafer and chip manufacturer in China, and is also the only domestic full-color LED chip manufacturer. And it will still maintain a rapid expansion rate in the future: the total investment in the original Wuhu Optoelectronics Industrialization (Phase II) project has increased from 4.08 billion yuan to 10 billion yuan, with a total scale of 200 MOCVD units. It will be gradually put into production in the next few years. After the project is completed, the company's LED chip production capacity will more than double.
The mid-term report shows that with the increasing prosperity of the overall LED industry and the continuous decline in costs caused by the company's large-scale production, the company's chip business gross profit margin has been accelerating recently and has now reached about 39%. Analysts generally believe that as the largest LED chip manufacturer in China, Sanan has fully benefited from the booming LED market in recent years.
Sunlight lighting (600261)
The company is the largest LED lighting production and export enterprise in China and plans to achieve sales revenue of 10 billion yuan by 2018. The financial report shows that due to the rapid shift to LED in the overall lighting market, although the energy-saving lamp business has experienced a significant decline, the LED business has rapidly expanded at a growth rate higher than the industry average, allowing the company to maintain overall growth. LED lighting products increased by 60.23% year-on-year, and gross profit margin also increased by 2.29 percentage points.
According to Sunshine Lighting’s previous announcement, in 2013, the company converted part of the funds raised from the original “micro-mercury environmentally friendly energy-saving lamp industrialization project” into an “annual output of 20 million units (sets) LED lighting product industrialization project.” In this regard, the relevant person in charge of Sunshine Lighting said that this is mainly due to the changes in international and domestic industrial policies currently faced by energy-saving lamps, and the rapid increase in LED lighting market demand.
ANNA