Affected by unfavorable factors such as overcapacity and price decline, the performance of domestic LED listed companies in the first half of this year was sluggish, and nearly 60% of companies experienced negative growth.
Experts believe that it is expected that overcapacity in the LED industry will continue in the future, and the pressure on product prices will remain high. However, with the implementation of the LED-related industrial policies of the national and local governments in the second half of the year, the policy dividend will gradually emerge and it is expected to have a positive impact on the performance of relevant listed companies.
Increment does not increase profits, LED company continued to slump in the first half of the year
Beginning in the second half of 2011, the domestic LED industry began to gradually reduce orders, prices have fallen sharply, and production has not increased. In the first half of this year, the market downturn has further intensified.
According to statistics, among the 20 LED companies in Shenwan, only 8 companies in the first half of this year achieved positive growth in net profit, and 12 LED companies all experienced negative growth. This is also the worst performance of listed companies in the domestic LED industry since 2010.
Increasing revenues and not increasing profits have become the "common problems" of many LED companies in the first half of this year. Take Sanan Optoelectronics, the largest LED chip company in China, as an example. In the first half of this year, the company achieved revenue of 1.371 billion yuan, a year-on-year increase of 90.53%; net profit of 466 million yuan, a year-on-year increase of 1.55%; the company's LED products operating profit margin was 27.24%. It fell 19% year-on-year.
According to statistics, in the first half of this year, the profitability of the domestic LED industry declined, and the gross profit margin of the industry was 28.67%, which was lower than last year and 29.48% and 31.89% of the same period of the previous year.
At the same time, the inventory turnover days of LED companies have been significantly extended. The data shows that Shenwan LED industry's inventory turnover days in the middle of this year is 156.6 days, higher than 130.14 days in the same period of 2011, and 114.26 days in 2010.
From the perspective of investment, since the beginning of this year, the domestic LED industry investment fever has begun to cool rapidly, especially in the field of upstream sapphire and epitaxial chips, which is no longer a hot spot for investment. According to the statistics of the High-tech LED Industry Research Institute, in the first half of 2012, the planned investment in the upstream sapphire and epitaxial chip new projects was 10.4 billion yuan, a decrease of nearly 90% compared with the same period of last year.
It is worth noting that due to the market downturn, many small and medium-sized LED companies have been bankrupt or liquidated in various places in China this year. In January of this year, Shenzhen Deshida Optoelectronics appeared the boss "running the road" incident; in July, Shenzhen billion-level LED display company Shenzhen vision Jingguang Electronics Co., Ltd. declared bankruptcy, and cast a shadow over the domestic LED industry.
Internal and external difficulties, overcapacity, industrial development
Zhang Xiaofei, director of the High-tech LED Industry Research Institute, believes that the reasons for the lack of revenue and net profit of domestic LED listed companies in the first half of this year are mainly due to the sluggish export; on the other hand, the industry is still in overcapacity. State, product prices do not rise and fall.
According to the study, under the influence of the European debt crisis, in 2012, the lighting markets in major regions of the world have been affected to varying degrees. The orders of LED manufacturers outside China have generally declined, especially in the European lighting market. Lower than other areas.
In China, due to the LED investment in the past two years, LED upstream manufacturing has become the focus of domestic layout. All localities have announced that they have invested heavily in the procurement of MOCVD equipment. Mainland China has also become the fastest growing region for global LED upstream capacity. However, with the release of new upstream capacity, the downstream LED application demand has not risen as expected, resulting in a serious overcapacity situation. LED products have always been in the field of backlights, landscape lights, street lamps, etc., and have not really broken into the general lighting market with huge market space.
According to industry statistics, the price of sapphire substrates and LED chips has been falling continuously since the beginning of the year, with an average decline of more than 20% in the first seven months. At the upstream end of the LED industry, the capacity of sapphire substrates under construction is 101 million pieces/year, while the actual demand in China is only 6.85 million pieces, which is still less than 1/10 of the capacity. Due to the serious overcapacity, the price of LED chips has plummeted. The price of LED chips was as high as 20 yuan/watt a few years ago. Now it has been reduced to 3-5 yuan/watt, even "the LED chips have reached the point where they are sold."
Experts believe that it is expected that overcapacity in the LED industry will continue in the future, and the pressure on product prices will remain high. However, with the implementation of the LED-related industrial policies of the national and local governments in the second half of the year, the policy dividend will gradually emerge and it is expected to have a positive impact on the performance of relevant listed companies.
Increment does not increase profits, LED company continued to slump in the first half of the year
Beginning in the second half of 2011, the domestic LED industry began to gradually reduce orders, prices have fallen sharply, and production has not increased. In the first half of this year, the market downturn has further intensified.
According to statistics, among the 20 LED companies in Shenwan, only 8 companies in the first half of this year achieved positive growth in net profit, and 12 LED companies all experienced negative growth. This is also the worst performance of listed companies in the domestic LED industry since 2010.
Increasing revenues and not increasing profits have become the "common problems" of many LED companies in the first half of this year. Take Sanan Optoelectronics, the largest LED chip company in China, as an example. In the first half of this year, the company achieved revenue of 1.371 billion yuan, a year-on-year increase of 90.53%; net profit of 466 million yuan, a year-on-year increase of 1.55%; the company's LED products operating profit margin was 27.24%. It fell 19% year-on-year.
According to statistics, in the first half of this year, the profitability of the domestic LED industry declined, and the gross profit margin of the industry was 28.67%, which was lower than last year and 29.48% and 31.89% of the same period of the previous year.
At the same time, the inventory turnover days of LED companies have been significantly extended. The data shows that Shenwan LED industry's inventory turnover days in the middle of this year is 156.6 days, higher than 130.14 days in the same period of 2011, and 114.26 days in 2010.
From the perspective of investment, since the beginning of this year, the domestic LED industry investment fever has begun to cool rapidly, especially in the field of upstream sapphire and epitaxial chips, which is no longer a hot spot for investment. According to the statistics of the High-tech LED Industry Research Institute, in the first half of 2012, the planned investment in the upstream sapphire and epitaxial chip new projects was 10.4 billion yuan, a decrease of nearly 90% compared with the same period of last year.
It is worth noting that due to the market downturn, many small and medium-sized LED companies have been bankrupt or liquidated in various places in China this year. In January of this year, Shenzhen Deshida Optoelectronics appeared the boss "running the road" incident; in July, Shenzhen billion-level LED display company Shenzhen vision Jingguang Electronics Co., Ltd. declared bankruptcy, and cast a shadow over the domestic LED industry.
Internal and external difficulties, overcapacity, industrial development
Zhang Xiaofei, director of the High-tech LED Industry Research Institute, believes that the reasons for the lack of revenue and net profit of domestic LED listed companies in the first half of this year are mainly due to the sluggish export; on the other hand, the industry is still in overcapacity. State, product prices do not rise and fall.
According to the study, under the influence of the European debt crisis, in 2012, the lighting markets in major regions of the world have been affected to varying degrees. The orders of LED manufacturers outside China have generally declined, especially in the European lighting market. Lower than other areas.
In China, due to the LED investment in the past two years, LED upstream manufacturing has become the focus of domestic layout. All localities have announced that they have invested heavily in the procurement of MOCVD equipment. Mainland China has also become the fastest growing region for global LED upstream capacity. However, with the release of new upstream capacity, the downstream LED application demand has not risen as expected, resulting in a serious overcapacity situation. LED products have always been in the field of backlights, landscape lights, street lamps, etc., and have not really broken into the general lighting market with huge market space.
According to industry statistics, the price of sapphire substrates and LED chips has been falling continuously since the beginning of the year, with an average decline of more than 20% in the first seven months. At the upstream end of the LED industry, the capacity of sapphire substrates under construction is 101 million pieces/year, while the actual demand in China is only 6.85 million pieces, which is still less than 1/10 of the capacity. Due to the serious overcapacity, the price of LED chips has plummeted. The price of LED chips was as high as 20 yuan/watt a few years ago. Now it has been reduced to 3-5 yuan/watt, even "the LED chips have reached the point where they are sold."
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