During the Spring Festival of 2018 (as of February 26), 9 listed LED companies have released their 2017 performance reports. Only BDO Runda and Changying Precision's net profit declined, and the other seven companies performed well.
From the evening of February 27 to the morning of February 28, another 23 listed LED companies rushed to release the 2017 annual performance report. Among them, the net profit of five companies, such as Jufei Optoelectronics, Midea Digital, Lehman, Abby, and Overclocking, fell at different rates, and Netac’s intelligence declined slightly. The other 17 listed LED companies all showed growth.
On the whole, LED companies in 2017 were pleased with the joy of the LED industry in China and they also brought confidence to the LED industry in 2018.
It is undeniable that 2017 is a year of rapid growth in the LED chip industry.
According to data from the Institute of Advanced Industrial Science and Research LED Research (GGII), the output value of LED chips in mainland China in 2017 reached 18.8 billion yuan, accounting for nearly 40% of the global LED chip output value. GGII expects that China's LED chip companies will continue to expand production from 2018 to 2019, and it is expected that in 2019 China's output value will exceed 50%.
Keeping the clouds open to the moon. For Jizhao Optoelectronics, 2017 has been a very hard year. It has continuously increased investment in production scale, and further expanded production through investment and capital increase to improve the company's overall operating capacity and comprehensive competitiveness.
Since Ganzhao Optoelectronics has clearly and intensively pursued the strategic principle of pursuing its LED business, it has adjusted and shut down other non-chip and epitaxial wafer businesses whose performance cannot always be improved, resulting in a slight decline in revenue. Express data showed that in 2017, Ganzhao Photoelectric achieved total revenue of 1.13 billion yuan, a year-on-year decrease of 1.68%. Despite this, production and sales volume of dry photo optoelectronic chips and epitaxial wafers increased, unit product costs decreased, and gross profit margin improved. In 2017, the net profit attributable to shareholders of listed companies increased by 335.20% year-on-year, which was an alarming rate.
Huacan Solar’s net profit increased by 87.92% year-on-year, which was also a good answer for 2017.
In the whole year of last year, Huacan's LED chip production capacity achieved significant growth, which led to a year-on-year increase in the production and sales volume of chip products. Second, Huacan Optoelectronics continued to increase R&D expenditure, and the overall chip production and sales structure was adjusted to the high end. With the further reduction in chip cost under scale effect and the convergence of customer structure with large and high-quality customers, the annual gross profit margin increased significantly over the same period of last year; in addition, the overall internal cost reduction of Huacan Optoelectronics has been significantly improved, and the technical renovation of the production line has achieved certain results. The progress has played a positive role in the improvement of the company's production efficiency and improved the company's profitability.
Today, Huacan Optoelectronics LED chip scale has already ranked second in the industry in China.
In 2017, the LED packaging industry continued its market recovery in 2016 and the market continued to grow rapidly. Stimulated by the industry situation, domestic LED packaging manufacturers have expanded production. At the same time, due to the improvement of China's packaging technology and cost advantages, China mainland has gradually accepted the global LED packaging industry transfer, and has now become the world's largest LED packaging production base, and the market share continues to increase.
According to GGII, the output value of LED packaging in China in 2017 was 87.0 billion yuan, up 18% year-on-year. GGII expects that the 2018-2020 China LED packaging industry will maintain a growth rate of 13%-15%. The scale of output value in 2020 will reach 128.8 billion yuan.
According to the 2017 performance report published by seven LED packaging listed companies, including Hongli Zhihui, Zhao Chi, Ruifeng Optoelectronics, etc., packaging companies are undoubtedly not a good harvest year.
There is no doubt that Hongli Zhihui, as a member of the first echelon of the domestic packaging industry, will surprise everyone every year. The same was true in 2017, with operating income exceeding RMB 3.6 billion, and the net profit attributable to shareholders of listed companies was growing at a rate of 154.87%.
Hongli Zhihui has been able to achieve such impressive results. On the one hand, it is due to steady growth in demand in the LED market. The company's business scale has continued to grow. The main business has maintained a steady growth; on the other hand, the operating results of its acquired subsidiaries are also increase.
In recent years, MegaChip's investment in the LED field is believed to be in everyone's eyes, and breakthroughs have been made in the field of chips, packaging, and lighting. In particular, Mega Energy has succeeded in becoming the first echelon of the packaging industry with its capacity of nearly 5000 KK/month.
Therefore, the 2017 net profit of Siu Chi shares increased by 63.25% year-on-year, and its LED products can be said to have contributed.
In addition, Ruifeng Optoelectronics and Changfang Group are also growing at a rate of over 150%.
Of course, there are surprises in the packaging industry in 2017 and there are naturally "surprises." For example, in order to rapidly increase its global market share and continue to increase its market development efforts, Ju Fei Optoelectronics has increased its associated expenses, resulting in a 61.44% decline in net profit in 2017. This decline rate is also very surprising.
In 2017, the rapid increase in the penetration rate of LED lighting promoted the rapid expansion of the LED lighting market. Thanks to the outbreak of small-pitch LED displays, the LED display market has also shaken off its slow growth. At the same time, LED niche markets such as LED lights, LED smart lighting, LED plant lighting and other emerging markets also showed more than 20% growth.
According to the data from the Institute of Advanced Industrial Science and Technology (GGII), the proportion of LED lighting market continues to increase slightly, reaching 66.7%; LED displays benefit from the explosive growth of LED small-pitch displays, and the proportion of output value increases to 9.4. %.
According to the Express Reports of 8 companies including Qinshang, Jin Wright, Chau Ming Technology and Lian Jian Optoelectronics, there are both joy and worry. Fortunately, Qinshang Group turned losses into profits, net profit increased by 121.46% year-on-year, and Zhouming Technology's net profit increased by 77.96% year-on-year, a large increase. Worryingly, the Meida and Lehman shares and Absen's net profit all fell to varying degrees.
It is undeniable that Maoshuo Power Co., Ltd. had a “turnaround” in 2017. Through the continuous release of production capacity, market expansion and product structure adjustment, the net profit attributable to the shareholders of the listed company was 13.7138 million yuan, an increase of 866.94% year-on-year, becoming a power company. A big surprise.
Overclocking 3, Netac intelligence performance in the past year is somewhat unsatisfactory. In particular, overclocking 3, its net profit fell 29.6% year-on-year, the decline rate is still relatively fast.
It is worth mentioning that as an equipment company, remote information and Tianlong Optoelectronics have achieved great success in 2017. In 2017, far-information subsidiaries Zhejiang Weier Technology Co., Ltd. and Hangzhou Huijing Technology Co., Ltd. made great contributions, and the foreign investment income of distant information also increased rapidly.
Let's say Tianlong Optoelectronics believes that Dashi, which has been in the heart for a long time, should be able to land. Previously, Tianlong Optoelectronics announced that due to the company’s loss for two consecutive years in 2015 and 2016, according to the regulations, if the company’s 2017 annual audit report is ultimately determined to be a loss, the company’s shares may be suspended from listing. In 2017, net profit increased by 225.48% year-on-year. It can be said that Tianlong Optoelectronics successfully escaped the delisting crisis.