Affected by price wars and other factors affecting the performance of LED listed companies

As of July 24, among the 20 companies in the Shenwan LED segment, 18 companies have released the 2013 semi-annual results forecast. Among them, 8 companies' performance in the first half of the year increased year-on-year, and the performance of 8 companies fell year-on-year, accounting for half of each.

Since April of this year, the operation of LED enterprises has gradually recovered, and the LED market in the capital market has been collectively shaken. After the previous rise, the LED sector entered the performance stage under the support of the industry fundamentals. Judging from the disclosure of the results announcement in the first half of the year, the popularity of LED LCD TVs has driven the rapid growth of demand for large and medium-sized backlights, the explosion of commercial lighting demand, and the launch of indoor lighting has provided support for the growth of listed companies' performance. However, factors such as price wars, cost increases, and reductions in government subsidies have affected the performance of listed companies.

Among the 18 LED bosses, the biggest increase in performance was Shilanwei. The company expects net profit in the first half of the year to increase by 250% to 300%, its performance growth is not only driven by improved LED lighting demand, but also benefit from the growth of market segments such as smart terminals, the company's power management IC, discrete device chips, power The shipments of finished products and other products have seen a large increase, which has led to a significant increase in the capacity utilization rate of Hangzhou Silan IC Co., Ltd., an important subsidiary of the company, and the profitability of chip production lines and power device packaging lines. The change in amplitude.

Weiwei's share growth rate ranked second, and net profit for the first half of the year is expected to increase by 21%-243%. However, the company's net profit for the same period last year was only 3.35 million yuan, the base is low. In addition to benefiting from the significant growth of the newly added LED lighting business, its performance has also benefited from the continued growth of traditional lawn lights and other businesses.

In general, the improvement of the fundamentals of the LED industry has brought about the growth of revenues and profits of related companies. However, the price war caused by excessive competition in the industry and the increase in expenses caused by the increase in investment have inhibited the profitability of listed companies to a certain extent. Some companies have experienced the situation of “increasing revenues without increasing profits”, such as Ganzhao Optoelectronics, Lehman Optoelectronics, and Hongli Optoelectronics.

In addition, the impact of government subsidies on LED chip companies is also emerging. Dehao Runda expects net profit to fall by 60% in the first half of the year, mainly due to the significant decrease in government subsidies received by the company. Although the industry leader Sanan Optoelectronics has not disclosed the semi-annual performance forecast, its net profit for the past year mostly relies on subsidies. It can be expected that its performance in the first half of the year will be largely affected by the subsidy quota.

Looking forward to the second half of the year, the brokerage research report is optimistic. Although the total revenue of Taiwan's LED chip and packaging industry decreased by 9.2% and 8.9% in June, China Merchants Securities believes that the short-term cooling of the LED industry is a normal off-season effect. After entering the peak season in August, the industry will resume its upward trend. In the second half of the year, the increase in the consumption of consumer electronics and home appliances will effectively drive the demand for backlights, and the lighting demand is expected to return to the right track after a short-term rest.

Orient Securities also said that LED quarterly data showed continuous improvement in the chain, optimistic about the industry's third and fourth quarter upward trend. The LED industry trend salon organized by Haitong Securities recently believes that LED is in the early stage of the outbreak period, and will infiltrate from 15% to 60% in the next 2-3 years, and then complete 60%-80% penetration in the next 1-2 years. . This is similar to the penetration period of smartphones, which has grown rapidly over the past two years and has now reached a penetration rate of 60%. The LED reached the state of the smart machine two years ago.

Shenwan LED panel company first half performance forecast list

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