LED lighting demand development exceeds expectations

After the collapse of LED enterprises in 2012, the LED market began to pick up in the second half of 2013. The recent approval of LED enterprises by the regulatory authorities is the signal of recovery. On December 14, Aoyang Shunchang announced that the company's application for non-public offering of A shares was approved. This means that it intends to refinance 5. 1. 2 billion yuan will be used for the construction of LED epitaxial wafer and chip industrialization projects (Phase I)Enter the countdown. 2012 is a difficult year for the LED epitaxial chip industry, with serious overcapacity and continuous price decline. The cruel market situation has led to the withdrawal or shelving of some chip projects. However, in the view of Chen Kai, general manager of Aoyang Shunchang, the winter of LED is about to pass, and it has gradually warmed up in the first half of 2013, and it is more obvious in the second half. The price of LED products is gradually declining, accelerating its replacement of traditional lamps. The future development prospect of LED lighting demand will be far better than before. 10 sets of mass production can be expected, according to the fixed increase plan disclosed by Aoyang Shunchang on June this year, it is proposed to be no less than 5. The price of 12 yuan/share will increase by no more than 0. 1 billion shares and raise no more than 5. RMB 1. 2 billion. After deducting the distribution fee, 0. 4 billion yuan will be used for LED epitaxial wafer and chip industrialization projects (Phase I)0. 1 billion yuan is used to supplement working capital. The total investment of the above LED project is 8. 0. 8 billion yuan, the construction period of the project is 30 months. After the project is completed and completed, an annual output of 1. 8 million blue-green LED epitaxial wafers will be formed (Calculated by folding 2-inch epitaxial wafer) The production capacity of 11. 5 billion blue-green chips is expected to reach the annual sales revenue of 7. After production. 0. 2 billion yuan, annual after-tax profit 1. RMB 6. 9 billion. Cui Shutian, a researcher at Guotai Junan Securities, believes that if the issuance is successful, 30 MOCVD equipment in Aoyang Shunchang will be fully produced in early 2015. It is estimated that the after-tax profit will contribute about 0. 1 billion yuan, about twice the existing profit scale. On December 3-4, a reporter from 21st Century Business Herald learned during an investigation in Huai'an, Jiangsu that there are currently 5 MOCVD equipment in mass production for the Aoyang Shunchang LED project, and the company has re-ordered 5 sets of 69 machines will arrive at the end of December this year. If there is no accident, there will be 10 MOCVD equipment in the first quarter of next year. According to the third quarterly report, the company's operating income in the third quarter was 3. 7. 4 billion yuan, of which LED business income was 1088. RMB 420 thousand. Galaxy Securities researcher Zhou Wei previously expected Aoyang Shunchang to turn the LED business into a profit in the fourth quarter of this year, and the business has achieved a single-quarter profit in the third quarter. According to the information provided by the management, the reasons for the early profitability of the project are: first, the mass production of the existing 5 MOCVD equipment is progressing smoothly, and the chip products are sold well. Second, the progress of product technology upgrading is relatively fast, and some medium-brightness chips with high gross profit margin have been sold. Downstream orders indicate a recovery. Our equipment is 69 machines, and downstream customers are mainly manufacturers of lamps and lanterns in Guangdong. Since April this year, we feel that there are more and more orders from LED downstream. Chen Wei said. Data show that in the third quarter of this year, the revenue of LED sector enterprises of A- share listed companies was 5288. 93 million yuan, up 6. 08, up 20. 62; The net profit is 617. 52 million yuan, slightly lower than the previous month-2. 25, a year-on-year increase of 38. 36; The return on net assets is 2. 00, a slight drop of 6 from the previous month, but a sharp increase of 27. Guoxin Securities analyst Liu Xiang believes that LED companies have considerable growth in revenue, net profit and ROE in the off-season, indicating that the current backlight market is gradually stabilizing, the general lighting market, which promotes the recovery of the industry, has gradually opened up. Hui Yulun, a researcher at GF Securities, believes that 2014 will usher in a turning point in the LED industry. The general lighting market will surpass the backlight market and become the mainstream of LED Industry Development. The first reason is that the foundation is stable, LED general lighting products have outstanding characteristics and advantages, and the light efficiency of light source is more than 10 times that of traditional lighting; Second, the policy is favorable and continues to ferment. It is expected that the ban on incandescent lamps within the scope will be completed in 2017; Third, the market price is attractive, and the LED purchase cost recovery period has been shortened from 10 years to 2. 3 years. There are always prophets in the secondary market, and Aoyang Shunchang has risen nearly 10 since December. December 16 rose 6. 27 at 7. 12 yuan, hit 7. 36 Yuan's 18-month high.