Dry photo photoelectric: terminal demand growth, expansion, seek new position in the LED industry

In the LED industry, the "dry photoelectric" is early in the morning, catch the 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 about 50 million yuan, and the entire industry fiery market deviates somewhat.

But with last year, and gradually become the company's leading capital of the company, the company is brewing in the industry to seek new status. 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. Dry photo is currently in the stage of this historical change, the company is very confident to become an important supplier of LED chip supply under the new pattern.

Terminal demand continues to grow

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 also in this wave of shortage driven by the market, the upstream enterprises in 2016 and 2017 began expansion, the overall production capacity compared to 2015 has greatly improved. 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, penetration showed an increasing trend, LED terminal demand continues to grow, which is also an important reason for the current round of market warming.

Industry oriented and financial industry interaction

According to Kim Cheung education, and Jun capital for the company "industry oriented, financial interaction" development philosophy to provide support. Dry photo photoelectric also established in 2017, "stick to the main industry" strategy, adhere to the strongest LED industry.

July 16th, the company has just signed a major cooperation agreement with the Nanchang municipal government, intends to invest 5 billion yuan in Nanchang (two phases investment), built to achieve 1 million 200 thousand monthly production scale of blue and green chip production base.

After calculation, a project after two years of construction, starting from third years of production, processing LED chips 7 million 200 thousand, annual sales of 1 billion 710 million yuan, total profit of about 220 million yuan.

According to the industry point of view, all aspects of the LED industry, concentration will continue to improve, especially in the upstream chip manufacturing link, in the next 2-3 years will likely form 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. Dry photo is currently in the stage of this historical change, the company is very confident to become an important supplier of LED chip supply under the new pattern. In view of this judgment, the company announced in Nanchang 5 billion yuan scale expansion project, it is hoped that in the LED field continues to become bigger and stronger."

Jin Zhang Yu also said that the company's future development will be "endogenous extension" simultaneously, in addition to its own management efficiency continues to improve, epitaxial expansion is imperative. "We are planning to set up an industry fund, and we hope to better promote the company's strategic layout in the field of semiconductors, and promote the long-term development of the company with the help of capital market advantages. The total size of the fund is not more than 700 million yuan, will focus on investment in the field of semiconductors, including, but not limited to microwave devices, RF devices, lasers, LED new directions."

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