What kind of LED chip industry is behind the fate of geometric growth and the cliff-like decline?
As of August 30, with the completion of the first half of 2017 performance report of Dehao Runda, LEDs including Aan Optoelectronics, Huacan Optoelectronics, Aoyang Shunchang, Silan Micro and Ganzhao Optoelectronics were listed. The chip company's interim financial report disclosure has come to an end.
(Note: The data comes from the 2017 semi-annual report of LED listed companies)
Judging from the interim reports disclosed by various companies, Sanan Optoelectronics has once again “taken the crown†in terms of revenue and net profit, and has become the king of the domestic chip industry. Sanan Optoelectronics said that the increase in operating income was mainly due to the expansion of production scale in the first half of the year, the steady increase in product prices, and the sharp increase in production and sales.
Similarly, Huacan Optoelectronics, Aoyang Shunchang, Ganzhao Optoelectronics, Shilanwei, Guangdong Ganhua and other enterprises have achieved double profits! Based on the release of production capacity, the company's supply capacity has increased. Huacan Optoelectronics' operating income in the first half of the year was 1.193 billion yuan, a year-on-year increase of 94.64%; net profit was 216 million yuan, a year-on-year increase of 306.28%. The interim results of Ganzhao Optoelectronics are also very bright. The net profit turned profitable compared with the same period of last year, which increased by 1748.59% to 101.796 million yuan. According to Ganzhao Optoelectronics, the outstanding performance mainly benefited from the continuous recovery of the LED industry market. The output and sales volume of the main products increased year-on-year, the unit cost decreased, and the gross profit margin of the products increased.
In addition, from the financial report point of view, Xinhaiyi's revenue in the first half of the year fell by a cliff-like decline, with a decline of 52.57%. But for its LED chip business alone, growth is obvious to all. In the first half of 2017, Xinhaiyi LED business achieved operating income of 136 million, an increase of 69.28% compared with 0.8 billion in the first half of 2016.
The most surprising thing is that the same brand of the LED chip industry, Dehao Runda's net profit fell by 518.81% compared with the first half of 2016, and the loss amounted to 67 million. Dehao Runda said that due to the mismatch of upstream and downstream production capacity of the company's chips, which affected the output and performance of the chip business, coupled with fierce competition in the industry, the company's overall business failed to grow explosively. In addition, Dehao Runda sold the international lighting business at the end of 2016. After the sale of these businesses, some of the company's products were self-produced and sold, and the scale of products purchased from the company decreased year-on-year.
Judging from the mid-term results of the above LED chip companies, the competition in the chip market in the first half of 2017 is still fierce. However, the price of LED chips has continued the steady trend since the fourth quarter of last year, and the overall market is improving.
For the rapid growth of the LED chip industry in the first half of the year, Ganzhao Optoelectronics, which has the strongest growth in net profit, has a strong voice. Gan Zhaoming, manager of Ganzhao Optoelectronics, told Gaogong LED that after the market volatility in 2015, the price of chips fell, the packaging factory expanded rapidly, and the support of the national 13th Five-Year Plan for the semiconductor industry, 2016 and 2017 as a whole. The industry has completely recovered. At the same time, the display industry has increased the demand for chips due to the narrowing of the spacing, which has intensified the development of the industry and the shortage of chips.
For the trend of the chip industry in the second half of this year, Huo Dongming said that in the second half of the year, product prices will stabilize, and chip companies will gradually introduce more cost-effective products, and the overall production and demand will be in a balanced state.
In fact, as early as 2015, the price of LED chips in China fell rapidly, causing many LED chip companies to sell below cost. Due to the rapid decline in prices, the growth rate of domestic LED output has also declined. Many chip manufacturers have begun to shrink. Capacity to cope with the rapid decline in prices, the LED chip production value in 2015 increased by only 8.33% than 2014.
At the beginning of 2016, the problem of oversupply in the LED chip field remains unresolved, and with the 25% capacity of the crystal power plant, the supply reduction of small plants and the downstream drive, the supply and demand structure is gradually adjusted. In the second half of 2016, downstream demand will drive The supply of upstream LED chips is in short supply, and the price of LED chips has rebounded. This has led to a rebound in the growth rate of LED chips, reaching 11.54% and a total output value of 14.5 billion.
Undoubtedly, LED lighting is the main driving force for the continued rapid development of the LED chip market. In the future, with the outbreak of the small-pitch market and the continuous rapid growth of the lighting market demand, the LED chip industry will promote steady and rapid growth. GGII expects that the output value of China's LED chip industry will reach 18.8 billion yuan in 2017, up 29.6% year-on-year; in 2020, the output value of China's LED chip industry will exceed 28.8 billion yuan.
It is worth noting that in the second half of the year, with the gradual release of the expansion capacity of LED chip manufacturers, the industrial concentration has accelerated, and the profitability and market share of leading enterprises have become more prominent. How to solve the chip industry situation? Huo Dongming said that for chip companies, they should increase research and development efforts, improve product performance, reduce product costs, supplement production capacity, deepen cooperation with downstream enterprises, and form a stable supply relationship.
In the past 15 years, China's LED industry has experienced a rapid development period, with an average annual growth rate of 30% during the 12th Five-Year Plan period. At present, the market for general lighting and backlights is growing steadily. The rapid growth of emerging applications will become a new kinetic energy for the growth of the market in the later period. Applications such as UV/IR, small pitch, automotive lighting, optical communication, and plant lighting are gradually emerging. With the expansion of the downstream application market, the demand for upstream chips will gain considerable space.
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