Changelight: terminal demand growth, expansion and the new position of LED industry

In the LED industry, changelight is played early, catch a late set. As early as 2010 the company landed on the gem, but until 2016, operating income has just exceeded 1 billion yuan, net profit of 50 million yuan, and the whole industry from some hot market.

But with the last year and the king made the company capital gradually dominate, companies are planning to seek a new position in the industry. The afternoon of July 27th, chairman Kim said changelight Zhang Yu in the securities times, e, micro chat show, in the market under the new order, chip manufacturers in addition to the largest three and Huacan, will also have other manufacturers to participate in the market rise. Changelight is currently in the history of changes, the company is very confident to become an important supplier of LED chip supply under the new situation.

The growing demand for terminal

Jin Zhang Yu told the Securities Times reporter, from the beginning of 2013, upstream of the LED expansion is slowing down, but after 2015 the market downturn, LED product prices have with the traditional lighting is even lower, which accelerated the LED lighting and display the product demand, thereby causing packaging factory batch production expansion, resulting in chip shortage.

It is in this wave of stock market driven, upstream enterprises began expansion in 2016 and 2017, the overall production capacity has greatly improved compared to 2015. But the release from the current capacity, the market supply situation has not changed, the market is still in short supply; the price of some products up or down or possible, but from the entire chip industry chain, the smaller the possibility of sharply lower prices.

Overall, the domestic LED in the traditional lighting, display, automotive lighting and other applications, the permeability increased, LED terminal demand is still growing, which is also an important reason for the current round of market rebound.

The interaction of industry and finance industry

According to Zhang Yu Jin Jun introduction, and capital provides support for the company "for the industry, development of the concept of harmony between". Changelight in 2017 established the "stick to the main industry" strategy, adhere to the bigger and the strongest LED industry.

In July 16th, the company and the Nanchang municipal government has just signed a major cooperation agreement, plans to invest 5 billion yuan in Nanchang city (two input), can be built green and blue chip production base to produce 1 million 200 thousand pieces of scale.

After calculation, the first phase of the project after two years of construction from the beginning of the third year production, processing LED chip 7 million 200 thousand, annual sales of 1 billion 710 million yuan, total profit of 220 million yuan.

According to the industry's point of view, all aspects of the LED industry, concentration will increase, especially in the upper reaches of the chip manufacturing process, in the next 2-3 years will be formed oligopoly.

In this regard, Zhang Yu Jin believes that "in the market under the new order, chip manufacturers in addition to the largest three and Huacan, will also have other manufacturers to participate in the market rise. Changelight is currently in the stage of history, the company is very confident to become an important supplier of LED chip supply under the new situation. In view of this, the company announced the expansion project of the scale of 5 billion yuan in Nanchang, is to continue to become bigger and stronger in the field of LED."

Jin Zhang Yu also said that the future development of the company will be "the extension of both endogenous, in addition to its management efficiency increase, extensive expansion is imperative. "We are in the process of the establishment of the fund industry, hoping to better use of capital market advantages to promote the company's strategic layout in the semiconductor field, promote the long-term development of the company. The total size of the fund is not higher than 700 million yuan, will focus on investment in the semiconductor field, including but not limited to the microwave devices, RF devices, laser, LED new direction."

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