With the popularity of LED lighting, the demand for the entire industry chain is undoubtedly rising. As of the morning of July 14, some LED companies have also released their 2014 semi-annual performance forecasts. Among them, there are companies such as Sanan Optoelectronics and Hongli Optoelectronics whose performance has met growth expectations, while there are also companies such as Roxia Technology and Nanda Optoelectronics whose performance is expected to decline. "Growth in demand" and "fierce competition" are intertwined in the entire LED industry, which can be described as both good and bad.
Upstream: Sanan Crystal’s net profit increased while Lu Xiao Nanda’s net profit declined
Mainland epitaxial chip king Sanan Optoelectronics did not disappoint the capital market. Sanan Optoelectronics expects to achieve a net profit attributable to the owners of the parent company of 648 million yuan in the first half of 2014, an increase of more than 40% over the same period last year, corresponding to an EPS of 0.27 yuan and an earnings per share of 0.32 yuan.
Sanan Optoelectronics stated that with the penetration of LED lighting, LED demand is strong. During the reporting period, the company's production capacity further increased and profitability continued to increase.
Crystal Optoelectronics is also expected to be added to the upstream industry chain. Crystal Optoelectronics expects net profit from January to June 2014 to increase by 30% to 60% year-on-year. Crystal Optoelectronics stated that the reasons for the change in performance are: the company's mobile phone-related products, especially blue glass assembly products for high-end smartphones, were in strong demand in the first half of the year, and such products have undergone early improvements in technology and process; sapphire substrate products have gradually increased in volume based on the continued growth of the LED market.
There is joy, but also worry. Because the sapphire concept once performed exceptionally well in the secondary market, due to the bleak forecast of the semi-annual report, Luxiao Technology is unable to smile. Luxiao Technology expects a profit of 4.8 million yuan to 6.8 million yuan in the first half of 2014, a decrease of 84.70% to 78.33% compared with the same period last year. In the first half of 2013, Luxiao Technology made a profit of 31.3738 million yuan.
In this regard, Luxiao Technology stated that during the reporting period, due to the impact of the economic environment, market competition was relatively fierce; the company's investment project production capacity has not yet been fully released, and labor costs, management costs, and financial expenses continued to rise, resulting in a decline in gross profit margin.
The performance decline of Nanda Optoelectronics, a large MO source manufacturer, seems to be a common occurrence. There is data to prove it. The net profit in 2012 was 90.1928 million yuan, a year-on-year decrease of 49%; the net profit in 2013 was 60.5861 million yuan, a year-on-year decrease of 32.83%. The performance forecast for the first half of 2014 is not optimistic either: the net profit attributable to shareholders of listed companies is expected to be 19 million yuan to 23 million yuan in the first half of this year, a year-on-year decrease of 32.81% to 44.49%.
In this regard, Nanda Optoelectronics stated that during the reporting period, due to fierce competition in the LED industry chain, the sales price of the company's main products fell year-on-year, and the sales price was relatively stable month-on-month; sales volume increased by approximately 50% year-on-year. As a result of the comprehensive impact, the company's overall performance in the first half of 2014 declined year-on-year.
Midstream: Hongli, Jufei, and Yuanfang all have net profits expected to increase; Ruifeng’s net profits are expected to drop 10%-25%
Hongli Optoelectronics estimates that the net profit attributable to shareholders of listed companies in the first half of 2014 will be 29.4381 million yuan to 34.8896 million yuan, an increase of 35% to 60% over the same period last year. Hongli Optoelectronics stated that the main reason why the net profit attributable to shareholders of listed companies increased compared with the same period last year: In the first half of 2014, the LED lighting market demand continued to improve. The company seized market opportunities and effectively released the company's production capacity. The company maintained stable growth in its main business.
Jufei Optoelectronics’ steady growth is seen by the capital market. Jufei Optoelectronics expects to achieve a net profit of 76.571 million yuan or 91.8852 million yuan attributable to shareholders of listed companies in the first half of 2014, a year-on-year increase of 25%-50%.
Jufei Optoelectronics stated that during the reporting period, the company's various businesses showed a good development trend, among which: (1) small-size backlight products continued to maintain rapid growth, and the development of international customers showed results; (2) medium- and large-size backlight business grew rapidly; (3) LED lighting device business developed well. The company achieved rapid growth in sales revenue and also brought rapid growth in net profit. The company estimates that the impact of non-recurring gains and losses on net profit in the first half of 2014 will be RMB 487,900 (RMB 2,493,800 in the same period last year), which will not have a significant impact on net profit for the current period.
The small life of the testing equipment factory Yuanfang Optoelectronics was relatively smooth. Yuanfang Optoelectronics estimates that the net profit attributable to shareholders of listed companies in the first half of 2014 will be 41.54 million yuan to 49.45 million yuan, a year-on-year increase of 5% to 25%. The company said that the industry development is generally stable and the company's operating situation is good. During the reporting period, the contribution of non-recurring gains and losses to the company's net profit is expected to be approximately 4.45 million yuan, mainly investment income and government subsidies.
Ruifeng Optoelectronics said that in the first half of 2014, the company's main business LED lighting market ushered in a historic development opportunity, and sales revenue in the first half of the year increased significantly compared with the same period last year. However, due to fierce market competition and the adoption of a profit-sharing strategy to form strategic alliances with major LED lighting customers, the company's gross profit margin has declined. In order to achieve the company's strategic goals in 2014, during the reporting period, the company increased investment in research and development and deployed business areas such as automotive electronics, EMC, and lighting modules, resulting in a significant increase in the company's sales expenses and administrative expenses compared with the same period last year. During the reporting period, the company's non-recurring profits and losses are expected to be 4.371 million yuan.
Downstream: Unilumin Technology Jiawei's interim report is expected to increase
Unilumin Technology expects the net profit attributable to shareholders of listed companies to be 20.65 million yuan - 24 million yuan, an increase of 82.97% - 112.65% over the same period last year. The profit in the first half of 2013 was 11.286 million yuan.
Unilumin Technology stated that the main reason for the improvement in the company's operating performance in the first half of 2014 was that the company's market strategy formulated in the early stage was implemented in place. The company increased its expansion and investment in the foreign trade market. The export orders for display and lighting increased significantly compared with the same period last year, and export revenue also increased accordingly.
Jiawei Shares released a performance forecast on Friday evening. The company expects to achieve a net profit of approximately 27.5 million yuan to 30.5 million yuan in the first half of the year, a year-on-year increase of 148.65% to 175.77%. The company's profit in the same period last year was 11.0599 million yuan.
ANNA