The LED packaging industry shows the trend of 'Big Evergrande'. The development prospect of Guoxing Optoelectronics is optimistic

On February 9, Guoxing Optoelectronics released the 2016 annual performance Bulletin. The company achieved a total operating income of 24. In 2016. 1. 8 billion yuan, a year-on-year increase of 31. 54; Achieve operating profit 1. 8. 4 billion yuan, a year-on-year increase of 26. 49; Realize total profit 2. 0. 1 billion yuan, a year-on-year increase of 15. 99; Realize the net profit attributable to shareholders of listed companies 1. 9. 3 billion yuan, a year-on-year increase of 20. 62. Under the adverse effects of the macroeconomic downturn and fierce competition in the industry, Guoxing Optoelectronics has stepped up the integration of the industrial chain, actively cultivated advantageous products with multiple fields and varieties, and continuously optimized the product and customer structure, effectively resist and resolve the impact of the external environment. In addition, Guoxing Optoelectronics has continued to expand LED production capacity with the help of funds, and has achieved results in technology research and development, quality control, cost control and market development, so that the company's performance continues to grow. LED packaging enterprises have two levels of differentiation and increased production capacity concentration. 2016 is a magnificent year. From the beginning of the year when LED chips, gold wires, brackets and other raw materials to the middle reaches of packaging giants, prices have risen one after another, there is no doubt that the LED industry will return to health and rationality. The LED industry is changing from blindly pursuing low prices to focusing on the products themselves, such as technology and performance. Small and medium-sized enterprises without core technologies have closed down or turned to a certain segment. At present, the LED industry is gradually moving towards concentration, and the situation of Evergrande will be more obvious, especially in the middle and upper stream chips and packaging fields. According to statistics, the number of LED packaging enterprises is estimated to be only about 1000 in 2016, leaving only 500 by 2020. From then on, it can be seen that the concentration of LED chips and packaging fields is continuously increasing, and the share of small and medium-sized enterprises is further eroded. Wu Yulin, president of Foshan Lighting Association, said in an interview that LED packaging has a certain technical content, so the threshold is relatively high. One of the current trends in the industry is to continuously concentrate on Giants, take Foshan as an example. For many years, the packaging factories with more than 10 million revenues have not been able to do it. There were about ten in the past, and now there are only two or three left. I estimate that it will continue to decrease. At present, the LED industry presents several trends: the demand of the whole market is continuously increasing. At present, although the demand of LED is continuously increasing, the competitiveness of overseas packaging giants in general lighting devices is gradually weakening, international manufacturers including Japan, Asia, Osram, Lumileds and Samsung are constantly seeking differentiated markets, avoiding the disadvantages of production capacity, and even transferring some orders to domestic packaging factories for foundry. In the domestic market, several major packaging companies began to continue capacity expansion in 2016. Small and medium-sized enterprises are at a disadvantage in brand, capital, technology, scale and production capacity in conventional general-purpose devices. Some enterprises with backward technology gradually withdraw from the market, and the leading share of large enterprises in the market has been strengthened. Expanding LED packaging capacity and seizing market share, incandescent lamps have been rapidly eliminated in recent years, and LED has become the mainstream light source for lighting. According to the statistical data, in 2016, the domestic market penetration rate of LED lighting products in our country reached 42, a year-on-year increase of 10, among which the domestic output of LED lighting products was about 8 billion, a year-on-year increase of 33; There were about 3. 8 billion domestic products, a year-on-year increase of 35. At present, the large-scale market for LED downstream applications is in the lighting field, followed by backlight applications and display screens. Among them, the scale of display screen application has maintained a steady growth trend, especially with the continuous maturity of small-pitch LED display screen technology, LED display screen application will gradually move from outdoor oversized display to indoor application. The rapid expansion of application fields has further increased the proportion of LED display screens in the entire downstream application industry chain. Data show that the overall output value of China's semiconductor lighting industry reached 521. 6 billion yuan last year, up 22. 8. The scale of upstream epitaxial chips is about 18. 2 billion yuan, up year on year; The scale of packaging in the middle reaches reached 74. 8 billion yuan, up year on year. 5; The scale of downstream applications was 428. 6 billion yuan, up year on year. Last year, the output value of LED lighting reached 204 billion yuan, a year-on-year increase of 31. 5, accounting for 47% of the overall application market. 6. In addition, the market size of small-pitch LED display reached 54. 8 billion yuan, up year on year, accounting for of the overall application market. 8. It is expected that the consumption of small-pitch LED will advance at a compound annual growth rate of 46 and will consume 189. 8 billion particles by 2021. Due to the two huge markets of small-pitch display and general lighting, many LED chips and packaging manufacturers continue to expand their production capacity, and Guoxing Optoelectronics is no exception. In October 11, 2016, Guoxing Optoelectronics invested no more than 0. 4 billion yuan to expand the company's packaging project. The construction period of this expansion project is from December 2016 to June 2017. It is understood that this round of projects will be used for the expansion of national star optical white light, RGB packaging and components, RGB product categories include indoor and small spacing. This is the third expansion of Guoxing Optoelectronics since 2015. Its determination to expand production was revealed at the end of 2015. At that time, Guoxing Optoelectronics issued three announcements, involving capital increase and production expansion of two subsidiaries. Guoxing optoelectronic 2016 expanded its small-pitch LED package twice, especially in the second round of May. The expansion of 0. 4 billion is mainly aimed at small-pitch LED. Guoxing Optoelectronics 2015 Small spacing output value of about 2. 0. 5 billion. With the expansion of small-pitch LED production in 2016, its production capacity may double or more.