An overview of the performance of 5 LED companies including Hisense and Absen, with the highest net profit increasing by 578.03%

Recently, 5 LED-related companies announced their 2022 results, 4 of which achieved an increase in net profit attributable to shareholders, with the highest increase exceeding 5 times.

Hisense Video

In 2022, Hisense Video achieved operating income of 45.738 billion yuan, a year-on-year decrease of 2.27%; net profit attributable to the parent company was 1.679 billion yuan, a year-on-year increase of 47.58%;

Hisense stated that the company's performance during the reporting period increased year-on-year due to the improvement of the company's leading advantage, the upgrade of display product structure, and the effective improvement of profit margins.

Hisense Vision’s business is divided into smart display terminals, new display and new businesses, and others. During the reporting period, the main revenue of smart display terminals was 35.259 billion yuan, of which domestic revenue increased by 1.89% year-on-year, overseas revenue decreased by 12.87% year-on-year, and gross profit margin increased by 3.45 percentage points year-on-year; new display new business revenue was 4.635 billion yuan, and gross profit margin increased by 3.91 percentage points year-on-year.

Hisense Vision's display products involve laser display, ULED, OLED, MiniLED and Micro LED and other display technologies. During the reporting period, in terms of Mini/Micro LED technology, Hisense Vision released a number of new products, including TVs, endoscopic surgery displays, LED conference and education-related commercial products.

In order to speed up the research and development and product promotion of new technologies such as Mini LED and Micro LED, and establish future resource advantages in the market and supply chain, Hisense Video continued to increase its investment in Qianzhao Optoelectronics in 2022, and officially obtained control of Qianzhao Optoelectronics in January this year and became its controlling shareholder.

In addition, it is worth noting that Hisense Vision is actively exploring the vehicle display market. During the reporting period, Hisense Vision's research and development of vehicle HUD based on DLP technology and vehicle MiniLED display based on zoned light control technology are in order.

Absen

In 2022, Absen achieved revenue of 2.796 billion yuan, a year-on-year increase of 20.09%; net profit attributable to the parent company was 203 million yuan, a year-on-year increase of 578.03%.

Regarding the surge in performance, Absen said the main reason was that the company fully implemented the simultaneous development strategy of domestic and overseas markets, promptly seized the opportunity of global market recovery, and signed orders and revenue returned to high growth. During the reporting period, overseas revenue increased by 75.82% year-on-year; domestic business declined. In 2022, Absen achieved a total of 3.508 billion yuan in contract signings, an increase of 17% compared with 2021.

From 2020 to 2022, Absen continued to increase its cumulative investment in R&D expenses by approximately 318 million yuan, and continued to increase investment in R&D of core technologies such as Micro LED and virtual photography. During the reporting period, the competitiveness of the company's products in high-end markets such as Europe, the United States, and Japan was comprehensively improved.

In addition, during the reporting period, Absen launched 45 new products including Kunlun COB Micro LED displays, which is also the key to supporting the company's performance growth and gross profit margin improvement.

Looking forward to 2023, Absen will continue to promote category brand building, explore e-commerce and diversified channels, enrich products and increase market share. Maintain research accumulation on difficult micro-pitch technologies/common technologies, explore cutting-edge technologies, glass-based technology, multi-primary color display technology, and sub-pixel packaging technology to further enhance the overall competitiveness of products.

Lianchuang Optoelectronics

Lianchuang Optoelectronics' main products are semiconductor laser series and microelectronic components, high-temperature superconducting sensing equipment, intelligent control, backlight and other series.

Among them, the semiconductor laser series and microelectronic component series products mainly include LED chips, fiber lasers, etc. LED chips are mainly used in civilian infrared receivers, lamps and other fields. Backlight series products are mainly used in backlight display fields such as mobile phones, tablets, industrial controls, vehicles, and computers.

In 2022, Lianchuang Optoelectronics achieved revenue of 3.307 billion yuan, a year-on-year decrease of 7.78%; net profit attributable to the parent company was 281 million yuan, a year-on-year increase of 21.31%.

During the reporting period, Lianchuang Optoelectronics' performance growth was mainly due to the rapid growth of the laser business, full orders, and a larger increase in sales revenue and net profit compared with 2021. At the same time, during the reporting period, Lianchuang Optoelectronics divested all non-brand business-related assets in the mobile phone business of the backlight segment, and adjusted the backlight product structure, focusing on industrial control, vehicle, vehicle entertainment VR and brand businesses.

AMEC

AMEC achieved revenue of 4.74 billion yuan during the reporting period, a year-on-year increase of 52.50%; net profit attributable to the parent company was 1.170 billion yuan, a year-on-year increase of 15.66%.

AMEC stated that plasma etching equipment continues to gain recognition from more customers at home and abroad, and its market share continues to increase. It has achieved multiple batch sales in the world's most advanced 5-nanometer chip production lines and next-generation more advanced production lines. In 2022, etching equipment revenue will be 3.147 billion yuan, an increase of approximately 57.07% compared with 2021, and the gross profit margin will reach 47.00%.

Another flagship product, MOCVD equipment, has achieved a leading position in the blue-green LED production line in Mini LED industrialization. In 2022, MOCVD equipment revenue will be 700 million yuan, an increase of approximately 39.05% compared with 2021, and the gross profit margin will reach 37.01%.

It is reported that during the reporting period, in the LED field, Micron's Prismo A7 for blue light lighting, Prismo HiT3 for deep ultraviolet LED, Prismo UniMax for MiniLED display and other MOCVD equipment products continued to serve customers. In 2022, AMEC's MOCVD shipments will exceed 500 cavities, while Prismo UniMax has shipped a total of 120 cavities since its release in June 2021. Special MOCVD equipment for Micro LED is under development.

In the field of third-generation semiconductors, AMEC has launched the MOCVD equipment Prismo PD5 for the production of gallium nitride power devices. It has been delivered to leading domestic and foreign customers for production verification and has obtained repeat orders. In addition, AMEC has also started the development of silicon carbide power device epitaxial production equipment, and will deliver prototypes to clients for production verification in 2023, further enriching the company's product line.

In terms of production capacity and R&D project construction, AMEC's production and R&D base of approximately 140,000 square meters in Nanchang has been basically completed, and some production clean rooms will be put into trial production in July 2022; the main construction of the production and R&D base of approximately 180,000 square meters in Lingang, Shanghai has been completed, and will be partially put into use in 2023; the R&D center and headquarters building of approximately 100,000 square meters by the Dishui Lake in Lingang, Shanghai is also under construction smoothly.

Igor

Igor achieved revenue of 2.821 billion yuan in 2022, a year-on-year increase of 26.50%; net profit attributable to the parent company was 191 million yuan, a year-on-year decrease of 1.71%.

Currently, Igor's business is centered around the "2+X" strategic layout, based on energy products and lighting products, while actively deploying new application areas such as vehicle power supplies, vehicle inductors, communication power supplies and energy storage.

During the reporting period, Igor said that net profit attributable to the parent company this year should increase significantly year-on-year, excluding the gains from the sale of assets in the same period last year.

The year-on-year growth in revenue was mainly due to the 47.76% year-on-year increase in revenue from energy products; on the other hand, lighting products achieved revenue of 851 million yuan, a year-on-year decrease of 3.82%.

It is reported that Igor’s lighting product business involves lighting power supplies and lighting fixtures. It is worth noting that starting from 2019, the revenue share of Igor's lighting products business has been declining year by year, and the gross profit margin has also been declining year by year.

Igor said that in 2023, it will continue to focus on the "2+X" strategic layout, based on energy products and lighting products, while also laying out new application areas such as vehicle power supply, communication power supply and energy storage. Focus on the main business, extend upstream and downstream of existing products, penetrate into new products and market areas, and continuously expand the business territory.