Demand release, LED industry grow vigorously


    Recently, led enterprises have intensively released financial reports for the first half of 2021, and leading enterprises in the industrial chain such as San'an optoelectronics, liad and Mu Linsen have successively "reported good news".It can be seen from the performance data that the LED industry is entering a high boom period. Industry insiders said that at present, most led enterprises are laying out small spacing LED related products, and the good development trend of mini led and micro LED has become an important reason for the substantial improvement of industry performance.

Mini / micro led becomes an important reason for performance improvement

   "Big rise" is the key word in the report card of LED listed enterprises in the first half of 2021. In the context of the continuous improvement of market prosperity, in the first half of this year, most of the LED listed enterprises also realized a year-on-year increase in revenue and profits.On the upstream side, the global LED chip leader San'an optoelectronics achieved a revenue of 6.114 billion yuan in the first half of the year, a year-on-year increase of 71.38%, and a net profit of 884 million yuan, a year-on-year increase of 39.18%; The revenue and profit of Huacan Optoelectronics in the first half of the year increased by 49.20% and 77.13% respectively.The performance of the middle and downstream LED packaging, LED lighting and LED display enterprises in the first half of the year was not inferior. In the midstream, the packaging manufacturer Mu Linsen's revenue in the first half of the year reached 9.127 billion yuan, a year-on-year increase of 28%, and the net profit attributable to the parent company was 646 million yuan, a year-on-year increase of 180.79%; Zhaochi, another major packaging manufacturer, had a revenue of 2.589 billion yuan in the first half of the year, an increase of 89.51% year on year.On the downstream side, the revenue and net profit of lyad in the first half of the year increased by 24% and 26.7% respectively, while the revenue and net profit of Zhouming technology in the first half of the year increased by 57.57% and 14.38% respectively.The net profit of Jingfeng Mingyuan, Shilan micro, Fuman electronics, Ming microelectronics and other enterprises increased by more than 10 times compared with last year, of which the net profit of Jingfeng Mingyuan increased by nearly 35 times.As for the reasons for the general rise in the performance of led enterprises, industry analysts believe that it is mainly due to the continuous rise in the prosperity of the LED industry, the growth of emerging lighting business, and the improvement of chip prices. In particular, the growth of terminal demand for small spacing LED display products has become an important support to boost the performance.The reporter checked the financial reports issued by various enterprises and found that most led enterprises are laying out small spacing LED related products.Pan Helin, executive director of the Digital Economy Research Institute of Zhongnan University of economics and law, said: "due to the global COVID-19 epidemic, the LED chip industry has experienced a round of global destocking, so in the medium term, the demand for LED chips is very hot." Under the situation of supply exceeding demand caused by the shortage and price increase of raw materials in the upstream and the strong demand for applications in the downstream, the volume and price of LED products rise together, and the profits of enterprises rise sharply.

   The relevant person in charge of xinyichang confirmed this statement in an interview with the reporter of China electronic news. He pointed out that "the performance of led enterprises in the first half of this year increased greatly, mainly due to the good development trend of mini led."In the first half of the year, the sales of Huacan optoelectronic Mini LED products increased by 140% year on year, and many new consumer electronics products equipped with its mini LED backlight products have been introduced to the market. In the field of micro led, Huacan optoelectronics has made key progress in the cooperation between small and medium-sized products and strategic customers, and the yield has steadily improved.

Liad, which is currently focusing on the commercial market of micro LED products, plans to achieve a revenue of 300 million yuan in the micro led field this year. Liad said that since October last year, the company has launched micro LED products into the market, and the demand for orders has been good. Overseas orders have increased accordingly. Last year, the sales revenue was 30 million yuan. This year, the company plans to complete the sales revenue of about 300 million yuan, achieving a 10 fold increase. It is reported that liad's Micro LED products have been sold to foreign giant companies such as Saudi oil, Russian TV, and many domestic enterprises such as national energy.

In the second half of the year, the industrial curve remained unchanged

   Roughly speaking, small spacing products have been developed for ten years in China. While the product price ratio is getting higher and higher, the technology is becoming more mature, and the use scenario and market volume are also growing synchronously. Mini / micro LED chips can not only be used as direct display products in the commercial display field, but also be used as backlight in terminal display products such as TV, tablet computer, notebook computer and vehicle screen, with a huge market prospect. According to the report of trend force, the global Mini / micro LED market will reach 4.2 billion US dollars by 2024.In recent years, new display industry chain enterprises have entered the mini / micro led field. Not only led manufacturers such as San'an, Jingdian, Huacan, Guoxing, Ruifeng, Lehman, liad, Zhouming technology, Hongli and Vogel optoelectronics continue to promote the R & D and industrialization of mini / micro LED technology. It also includes panel enterprises such as BOE, TCL Huaxing, Huike, Youda, quchuang and Caijing.Mini led, as the transition technology of micro led, also grows rapidly. With the active investment of apple, Huawei, Samsung, Hisense, Skyworth, LG, TCL and other terminal brands, mini LED backlight products are rapidly spreading in the high-end market, which also directly drives the performance of upstream led enterprises. According to the report of trend force, the market size of mini LED is expected to grow to US $1.15 billion in 2024.

     For the development expectation of the second half of the year, led enterprises have shown great confidence. Zhang Xiaorong, President of Shenzhen Science and Technology Research Institute, believes that the operating efficiency of LED manufacturers in the second half of the year is expected to continue to improve.The relevant person in charge of jucan optoelectronics pointed out that in the second half of this year, driven by such positive factors as the increase in the proportion of high-value-added products, the effective control of costs, the improvement of capacity utilization, and the high market demand, the operating efficiency of led enterprises is expected to maintain a prosperous state.

"It is expected that the company's products will be in short supply in the second half of the year." The person in charge of liad told the reporter of China electronic news. The person in charge said that as the LED industry continues to create new demand, lyad has not only set a new record in the domestic display market, but also achieved a substantial increase in the overseas display market.It is understood that after the epidemic was effectively controlled, lyad's orders recovered quickly. In particular, the business situation in the overseas market was better than expected. At present, overseas orders have exceeded the best level in history, and the greatest pressure comes from the supply chain. In June this year, micro LED production capacity has been expanded to 800K, and it is still operating at full capacity. It is expected that in the third quarter of this year, overseas performance growth will be even more impressive. "In the next month or two, enterprises will grasp the pace of expansion according to market conditions." The above person in charge emphasized.In an interview with China electronic news, Wu Jiantao, executive vice president of Zhouming technology, said that mini LED has ushered in the first year of large-scale commercialization. Major giants have launched products using mini LED backlight or similar technologies. The mini LED industry is in full swing. The layout of mini LED will become an absolute profit growth point for led enterprises. "Wu Jiantao said that the five Mini LED production lines expanded by Zhouming technology in the first half of the year have been put into production. The Daya Bay phase II project, which mainly focuses on mini LEDs, is expected to officially start the production ceremony within this month, and gradually realize the capacity ramp up. It is expected that this year, Zhouming technology Mini LED will achieve a sales volume of 400 million to 500 million yuan.Insiders believe that the current penetration rate of mini / micro LEDs is not very ideal, which is mainly related to the cost, which is affected by factors such as chips, sealing tests and equipment. Theoretically, when the dot spacing is less than 0.9mm, the micro / mini LED will be more economical, and the usage and orders will increase significantly. At the same time, the demand for mini / micro LED display will also increase. This technological breakthrough will also bring greater growth space for led enterprises.

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