G Silan LED to enhance the overall value

Chen Gang Orient Securities Research Institute believes that with G Silan in the LED industry leading position gradually established, its value will improve. Is expected in 2006, 2007, respectively, EPS, $0.5, giving overweight investment rating. 6 months target price of 12 yuan.

Chen Gang pointed out that, as a research and development company, Silan this year has been developed a number of key technologies, and has made great progress. The company from the original single technology to low-end consumer chip based, gradually into a number of core technology reserves, the formation of a clear new profit growth point of the enterprise.

Chen Gang said that the company has made significant technological breakthroughs in the field of digital audio and video, discrete devices and LED, forming a two wings development pattern. Digital audio and video as the main body, discrete devices and LED for the two wings, based on IC design and manufacturing platform. In the "one body two wings", any breakthrough, the company's performance will be significantly improved.

Chen Gang believes that LED is a historic change in the lighting industry, with a huge market prospects. Due to technical reasons, China's LED industry has been at a low level. Relying on the advantages of design, Silan LED using flip chip structure, positioning in the high-end, the overall technology in the domestic leading level, the market has gained market high evaluation and customer recognition. In industrial development, Silan has a clear industrial layout of LED, starting from the middle reaches of the chip, and gradually extended to packaging and application and extension of the upstream and downstream, through cooperation with foreign giants, to enhance the overall level of. The company expects 2006 LED revenue of 50 million yuan, in 2007 will be more than $100 million.