In the LED industry, dry photo optoelectronics can be described as early in the morning, catching up late. As early as 2010, the company landed on the GEM, but until 2016, the operating income has just exceeded 1 billion yuan, and the net profit is about 50 million yuan, which is somewhat contrary to the fiery market of the whole industry.
However, with the gradual acquisition of the company's leading power by Harmony Capital last year, the company is mulling a new position in the industry.
On the afternoon of July 27th, Jin Zhangyu, chairman of Ganzhao Optoelectronics, said in a micro-interview program that in the new market order, among the chip manufacturers, in addition to the largest Sanan and Huacan, there will be other manufacturers. And participate in the market together. Dry Photo Optoelectronics is currently at this stage of historical change, and the company is very confident to become an important supplier under the new LED chip supply.
Terminal demand continues to grow
Jin Zhangyu told Securities Times that since 2013, the upstream expansion of LED has slowed down, but after the market downturn in 2015, the price of LED products has been comparable to or even lower than traditional lighting, which has accelerated LED lighting and display. The demand for screen products, which in turn caused the packaging factory to expand in volume, eventually led to the shortage of chips.
It is also driven by this wave of out-of-stocks that upstream companies began to expand production in 2016 and 2017, and the overall production capacity has increased significantly compared to 2015. However, from the current release of production capacity, the market is still not in short supply, the market is still out of stock; some product prices may be raised or lowered, or from the entire chip industry chain, the possibility of a sharp decline in prices small.
Domestic LEDs in the traditional lighting, display, automotive lighting and other applications, the penetration rate is increasing, the demand for LED terminals is still growing, which is also an important reason for the current round of market recovery.
Industry-based and industry-integrated interaction
According to Jin Zhangyu, Hejun Capital provided support for the company's development concept of “industry-based, industry-industry interactionâ€. In 2017, Ganzhao Optoelectronics established the strategy of “holding the main business†and insisted on becoming the strongest LED industry.
On July 16, the company just signed a major cooperation agreement with the Nanchang Municipal Government. It plans to invest 5 billion yuan (in two phases) in Nanchang City to build a blue-green chip production base that can achieve a monthly production of 1.2 million pieces.
It is estimated that the first phase of the project will start production in the third year after two years of construction. The annual processing of LED chips is 7.2 million pieces, with annual sales of 1.71 billion yuan and total profit of about 220 million yuan.
According to the industry's point of view, the concentration of all aspects of the LED industry will continue to increase, especially in the upstream chip manufacturing sector, which will likely form an oligopoly in the next 2-3 years.
In this regard, Jin Zhangyu believes that “Guangzhao Optoelectronics is currently in this stage of historical change, and the company is very confident to become an important supplier under the new pattern of LED chip supply. In view of this judgment, the company announced that it will carry out a scale of 5 billion yuan in Nanchang. The expansion project is precisely to continue to grow bigger and stronger in the LED field."
Jin Zhangyu also said that the company's future development will be "endogenous extension and simultaneous promotion", in addition to its own management efficiency continues to increase, the extension of the expansion is also imperative. "We are planning to set up an industrial fund, hoping to better leverage the capital market advantage to promote the company's strategic layout in the semiconductor field and promote the company's long-term development. The total size of this fund is not more than 700 million yuan, and will focus on investing in the semiconductor field, including But not limited to microwave devices, RF devices, lasers, new LED directions, etc."
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