China can photoelectric: LED short term demand in the industry

"We are now in full production, as far as I know, the main manufacturers in the industry are now in full production, the short-term memory demand in a certain industry chain, generally have increased demand, is expected in the two quarter and three quarter, the supply and demand situation will be more intense. "Yesterday afternoon, China will be held in the annual general meeting of optoelectronics, the company president Liu Rong said in an interview with reporters zhengbao.

China is the second largest LED chip manufacturers, the current monthly production capacity of 700 thousand, and has a production capacity of up to 1 million monthly base in Yiwu, will be put into operation in July this year. In the field of multi screen display, the LED chip can occupy more than 1/3 of the domestic market share.

An optoelectronic industry "boss" has taken the lead in prices in January this year, the reason is the rapid rise in prices of raw materials, the cost is increasing rapidly.

Part of the product price is normal, may be 5%, may also be 10%, but the overall price is not obvious. Liu Rong said that the changes in the market situation, each company will adopt a different strategy, the practice is mainly to adjust the product structure, the production capacity can be concentrated on the higher gross margin products.

Liu Rong believes that the industry supply and demand tension is mainly related to two aspects: one is the continued growth of downstream demand, especially the lighting of the consumer goods industry explosive growth; two is the industry's own adjustment, over the past two or three years, almost no expansion, HC semitek is almost the only a contrarian expansion company. Retrieve public information can be found, affected by the serious excess industry supply stage, the past few years, the LED industry was a serious loss, which not only restricts the further investment in the industry, the enterprise has been part of investment also choose to exit, leaving no small market space.

Liu Rong pointed out that, after a depth adjustment, the entire LED industry is expected to maintain a relatively stable development situation, this is the day before the company equity incentive plan target emboldened.

"We still have confidence, is a low base, 2016 net profit after deduction of non only 25 million 510 thousand, to reach 5 hundred million in 2020 (after deduction of non), we think there are still opportunities; two is the company currently is in a stage of rapid growth, the company in 2016 operating income increased by 65% this year, should be able to maintain. Liu Rong said that with the release of the company's production capacity, as long as the overall stability of the industry environment, it should be able to achieve the goal.

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