LED screen market returns to rational development

The LED screen market has returned to rational development. Last year, the LED screen market was full of ups and downs. All LED display manufacturers tried their best to develop new products, market promotion, listing on the new third board, etc., and the LED screen market has never experienced a wave of price increases. In a wave, the overall market sales are rising. Since the price of LED screens has bottomed out in recent years, the price rebound is also a rational return. Stimulated by the huge market demand, all major downstream LED screen application companies are in a state of profitability. LED chips: In the field of LED chips, Sanan Optoelectronics, Dehao Runda, Huacan Optoelectronics, Aoyang Shunchang, Tongfang and Qianzhao Optoelectronics are hurdles that we cannot bypass.

As of today, except for Sanan Optoelectronics and Tongfang, the other four "big guys" have disclosed their performance reports. At present, Sanan and Tongfang have not disclosed their financial reports. It is believed that the revenue structure of LED chips will undergo major changes by then. The profitability of Sanan Optoelectronics is obvious to all. From January to September 2016, Sanan achieved operating income of 4.486 billion yuan, and the net profit attributable to shareholders of listed companies reached 1.496 billion yuan.

There is no doubt that the leading position of Sanan Optoelectronics is still stable. But from the point of view of revenue, BDO Runda temporarily ranks first with 4.053 billion, followed by Aoyang Shunchang, Huacan and Qianzhao Optoelectronics respectively rank third and fourth; however, BDO Runda's profitability is the most Weak, with a net profit of 30 million yuan at the bottom, while Huacan Optoelectronics became the "profit king" with 267 million yuan, and Aoyang Shunchang and Qianzhao Optoelectronics occupied the second and third places. Editor's note: For the chip field, from the perspective of supply at home and abroad as well as in Taiwan, the industry has shrunk significantly.

Taking Taiwan Jingdian as an example, from 2015 to 2016, it has reduced production by 25%. Its MOCVD has dropped from 500 units to less than 400 units, and the decline is relatively obvious. From the factory point of view, the company announced the closure of a factory in Taiwan and the mainland, and the production capacity has shrunk significantly.

In addition, CREE's announcement shows that the company's high-power chip production will be reduced by 25%. Today, the vast majority of listed LED companies have disclosed their 2016 performance reports. I wanted to wait until all LED screen companies have disclosed their financial reports before making a summary, but the author couldn't hold back his joy when he saw that the performance of the LED industry was booming when he was statistics.

As a screen person, my heart fluctuates a lot at this time. To this end, the author counted the financial reports of 32 listed companies and shared them with you. Domestically, the withdrawal of enterprises is also more obvious.

On the one hand, due to price cuts and environmental storms, a large number of small and medium-sized enterprises have withdrawn. According to statistics, at the end of 2016, a large number of LED display companies in Guangdong were shut down and rectified. On the other hand, domestic leading enterprises have increased their capabilities in mergers and acquisitions.

Regardless of whether it is inside or outside the industry chain, the entire merger and acquisition is accelerating. At the end of 2015, the LED industry was still relatively gloomy. People in the industry are not sure whether 2016 can get out of the "cold winter"! With all kinds of questions and worries, LED people finally "staggered" into 2016.

During this year, we have experienced too many thrilling stories together. From the perspective of demand, it is estimated that the effective production capacity of LED chips in 2017 will be less than 85 million pieces, while the demand will exceed 93 million pieces, with a supply gap of about 8 million pieces, and the overall chip supply will be in short supply. From the beginning of the year to the end of the year, the continuous "price increase" incidents have affected the nerves of the industry again and again; the e-commerce "dark horse" product collapsed, Ruigu power supply collapsed, etc., one by one "bloody" lessons washed away the "only remaining" in the industry In the end, even the international giant Osram sold LEDVANCE, GE Screen withdrew from the Chinese market, etc., which made the industry sigh that the industry was really dead! In the blink of an eye, 2016 passed like a "roller coaster".

Now, it is the season of annual inspection results! On sunny days after another, the financial reports of listed LED companies are also coming in one after another. Today, the author will take you into the world of financial reports one after another, to spy on the future and hope of the industry together. But, what is the truth? In 2016, we also heard exciting news one after another! Mulinsen acquired LEDVance, Chinese capital wanted to buy Osram, Oppo and Inventronics went public "gloriously", these " What kind of news is released by the "Script"? Yes, it's not that the LED industry is dead, but the industrial structure has changed! It has become Chinese and centralized! LED packaging: The LED packaging field is a situation of segregation.

Judging from the statistical data of ten companies, nine of them are profitable to varying degrees, and only Changfang Group has suffered losses. The data shows that the profitability of most packaging companies has improved to varying degrees. Guangpu Electronics, which has just successfully transferred boards this year, has not shown any weakness in front of the "big brother". As far as the LED business is concerned, Mulinsen is undoubtedly the "big brother" in the packaging industry. With a revenue of 5.52 billion yuan, it overwhelms Opple Screen and becomes the current "revenue king".

At the beginning of this year, Mulinsen launched the first round of price increases in the new year. Industry insiders predict that the price increases in the LED large screen industry will continue. With the continuous expansion of LED downstream applications and the gradual increase in market penetration, emerging markets such as screens with high added value, small-pitch displays, and automotive LEDs will bring incremental space to the industry. The agency predicts that due to factors such as the slowdown in the expansion of midstream packaging plants and the expansion of demand for downstream applications, LED price increases are expected to heat up in the future.

Editor's words: In the field of packaging, the number of enterprises has shrunk significantly. Data show that by 2020, there will be only about 500 packaging companies left. The shrinkage of packaging companies will be more obvious than that of chip companies. In the process of shrinking the number of companies in these two fields, the industry concentration is increasing.

From the statistical point of view, only Sansi and Jinlaite have experienced a decline in profitability in the past year; and Huiming Screen, which was just listed last year, topped the revenue list with a report card of 5.477 billion. In recent years, solid-state advertising has been rapidly eliminated, and LED has become the mainstream product of the screen. According to the data, the domestic market penetration rate of my country's LED screen products reached 42% last year, a year-on-year increase of 10%. Among them, the domestic LED screen product output was about 8 billion, a year-on-year increase of 33%; domestic sales were about 3.8 billion, a year-on-year increase of 35%.

As for the reason for the decline in profitability, Sansi said that it was due to the increase in the company's R&D investment, the increase in loan interest generated by the increase in bank loans, and the increase in bad debts formed by assets. However, Jinlaite’s profit has fallen off a cliff. Jinlaite explained that the company adjusted the unit price of products to strive for a larger market share, and the gross profit of product sales decreased; in order to open up the domestic market, sales staff increased, promotion costs and transportation expenses increased. The increase in sales expenses and the loss incurred before the divestiture of Zhejiang Anbei's subsidiary were incorporated into the current period's statement, which were caused by three major reasons. .