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Inventory of the Q3 performance of 26 domestic LED companies, only 7 have double growth in revenue and profit!

 Last Update: 2023-01-05
 Source: Internet
 Author: User

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【Chemical Machinery and Equipment Network Market Analysis】Entering November, the third quarterly report of A-shares was disclosed, and listed companies in all aspects of domestic LED have successively brought an end to the "examination papers" in the first three quarters of 2022
.

Inventory of the entire LED industry chain, involving chips, equipment, packaging, materials, power supplies, ICs, applications, etc
.
According to the statistics of Veike.
com, in terms of the performance of the first three quarters of this year, only equipment companies have played relatively well
.

Chip revenue increased slightly, and the decline trend of increasing revenue without increasing profit was obvious

Due to the global economy and LED industry environment, chip market demand slowed down, selling prices declined, shipments decreased year-on-year, resulting in a year-on-year decline in the revenue of some chip companies, Veike.
com showed statistics on 6 domestic LED chip listed companies for reference
.

Overall, the total revenue of the six chip listed companies in the first three quarters was about 25.
927 billion yuan
.
The data of the same period last year was about 24.
842 billion yuan, achieving a slight year-on-year increase of 4.
37%.

Specific to various enterprises, Sanan Optoelectronics, Jucan Optoelectronics, Azure Lithium Core, and Silan Micro have achieved positive revenue growth, of which Sanan Optoelectronics officially exceeded the 10 billion yuan revenue mark
.

However, the performance in terms of profitability is somewhat unsatisfactory, Huacan Optoelectronics and Qianzhao Optoelectronics have turned from profits to losses, and only Silan Micro has achieved double growth
in revenue and profit.

Combined with the explanations given in various financial reports, it can summarize the three major reasons
that affect the revenue of LED chip companies.

1.
In the first half of this year, due to the rise in commodity prices caused by geopolitical conflicts, chip raw materials were also greatly affected
.
At the same time, global inflation is further weakening demand
on the consumer market.

2
.
Affected by domestic control and lockdown, the industrial chain of some cities has been interrupted, logistics and supply crises have occurred, and the market has been sluggish.

3.
The global semiconductor industry began to slowly decline
after a period of rapid rise.

Although the industry prosperity is at a trough, most companies still have not relaxed their R&D investment, Sanan Optoelectronics' R&D investment in the first three quarters reached 396 million yuan; Silan Micro's R&D investment in the same period reached 497 million yuan, and Huacan Optoelectronics' data was 196 million yuan
.

This also shows that most companies still choose "long-termism" and are optimistic about the future market development of
LED chips.

NAURA's revenue exceeded 10 billion, and the equipment factory bucked the trend

After years of market precipitation and layout, "localization" has become the development trend of the domestic manufacturing industry, and it has also pried a huge market
for domestic LED equipment manufacturers.

Overall, the total revenue of these five LED listed companies in the first three quarters of this year reached 15.
014 billion yuan
.
In addition to Zhiyun shares, the other four companies all achieved double growth
in revenue and profit.

NAURA even relied on a growth rate of 62.
19% to break through the revenue record of 10 billion yuan, and the corresponding profit growth rate was as high as 156.
13%.

NAURA said that in the first three quarters, the downstream market demand for electronic process equipment and electronic components business was strong, and orders were full
.
And to achieve the effective operation of production and supply chain, to ensure the timely delivery of customer orders, to achieve sustainable growth of business performance
.

Xinyichang has said that LED display is the main application field of LED packaging equipment, with the development of LED display in the direction of high density, LED display application penetration is increasing, with the rapid rise of Mini LED and Micro LED, bringing major opportunities
to the industry.

The packaging continued to be rolled in, and only two companies increased their revenue and profits

At present, the pattern of China's LED packaging industry is initially determined, in recent years, the LED packaging industry has experienced price involution due to capacity expansion, some small and medium-sized manufacturers have been eliminated, the industry concentration is gradually increasing, and the Matthew effect is becoming more and more obvious
.

In the context of the overall sluggish performance of the industry, the performance of the eight major packaging factories in the first three quarters was not bright, with a total revenue of 56.
038 billion yuan
.
Only DSBS and Xinruida have achieved double growth in revenue and profit, and the main source of DSB's revenue increase is not LED packaging, but other products
such as electronic circuits.

The main reasons for the recession are still affected by factors such as the conflict between Russia and Ukraine, repeated epidemics and inventory by downstream manufacturers, the decrease in terminal demand for some products, and the intensification of market competition
.

In order to seek a breakthrough, traditional packaging manufacturers have turned their attention to high value-added subdivisions such as high display index, full-spectrum devices, Mini backlights and display devices
.

For example, DSBJ launched a variety of N-in-1 Mini RGB products, and at the same time focused on the Mini LED backlight track, and correspondingly launched Mini LED backlight products
with different technical routes such as POB and COB.

Guoxing Optoelectronics IMD-M07 has achieved mass production, IMD-M09 standard version has been unanimously praised by the market, on this basis the improved IMD-M09 flagship version has completed mass trial production
.

The panel industry ushered in the "darkest moment", and the gross profit of BOE fell to negative territory

Finally, turning to the downstream panel factory, since the second half of last year, the supply and demand of large-size panels represented by TV panels have changed, and panel prices have begun to pull back from highs, and the impact has continued all the way to this year's
three quarterly reports.

Veike.
com shows and counts a number of domestic panel leading data
including BOE, TCL, and Shentianma.
Among these 7 domestic panel listed companies, only Hehui Optoelectronics achieved positive revenue growth; Longteng Optoelectronics achieved a profit, and Shentianma showed positive year-on-year growth this year due to the special factor that the profit turned into a loss in the same period last year
after financial retrospective.

In addition, the panel market has been unable to get rid of the low-profit "label" affected by the long-term price war, and many companies also said that the average price of products in the first three quarters of this year was significantly lower than the same period last year, and the industry profit margin entered the bottom of
the cycle.

In fact, panel prices have continued to decline since August 2021 and have been falling for 15 consecutive months
as of the end of October 2022.

Under price pressure, panel manufacturers' profit margins have also been severely squeezed, taking the panel "leader" BOE as an example, its sales gross margin in the first three quarters has fallen to a new low in recent years, and the sales gross margin in the third quarter has fallen to 2.
62%.

Other companies, such as Visionox, also fell to -16.
53% in the third quarter of their own sales gross profit, and it is more difficult to increase revenue and profit this year
.

Fortunately, driven by the adjustment of production cuts by panel manufacturers this year, a slight recovery began to occur in the second half of October, and it was also affected by the terminal manufacturers to stock up a large number of goods in advance for the "Double 11" and overseas "Black Friday" promotional festivals, and the procurement of terminal manufacturers returned to a normal level
.
When the "darkest moment" is overcome, panel companies will also usher in the dawn
.

summary

The Weike network shows a total of 26 domestic LED listed companies Q3 performance reports, 10 companies have entered a loss state, 7 companies have achieved double growth in revenue and profit, and the industry continues to be in a
downturn.

However, specifically, the decline in revenue or profits of many LED companies is mainly due to the drag of the entire macro environment and other force majeure factors, not from their own impact
.

In addition, the update of technology is driving the display industry to "shuffle"
.
In the cycle of alternation between the old and the new, the new display represented by Mini/Micro LED still performs well in this year's adversity, and LED-related companies will continue to develop the main road centered on MLED
.

At the same time, under the guidance of policies, MLED penetration rate and application scenarios are constantly enriched, and recently the Ministry of Industry and Information Technology and other five departments jointly issued the "Virtual Reality and Industry Application Integration Development Action Plan (2022-2026)", VR has successfully become a popular segment of enterprise competition
.

Therefore, even if BOE and other companies are not ideal in this year's earnings situation, they still increase the layout of new tracks, superimposed on the same hot on-board display, which will also become the main second growth curve
of enterprises in the future.

Original: Inventory of the Q3 performance of 26 domestic LED companies, only 7 revenue and profit double growth!

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