LED business provides sufficient safety margin of three taking advantage of competition

China Merchants Securities News, shares in Sanan optoelectronics electronic safety margins and upward flexibility both offensive and defensive varieties. The gradual release of safety margin from the LED chip industry concentration increasing and the capacity of the new company, is expected to three profit this year will exceed 2 billion, next year is expected to grow 40%; upward flexibility from the compound semiconductor and other business LiFi increment and CDB, large gold, the government of Xiamen under the support of overseas mergers and acquisitions.

LED services provide sufficient margin of safety. Sanan Optoelectronics in the ultra competitive global LED industry continued expansion, in Taiwan, the United States and Japan competitors gradually show scale, technology, cost advantages, become the biggest beneficiary of the upgrade of industrial concentration. The LED lighting demand is rising, the price decline continues to drive penetration. Three 32 new MOVCD gradually put into operation, will promote the second half of revenues by quarter growth, conservative calculation of annual revenue growth is expected to reach 2 billion. The remaining 68 MOCVD will be put into operation in 2016, hoping to promote the performance of the 16 year growth of 40%. The company's latest announcement 126 million acquisition of air chemical products (AP) (Wuhu) of the 100% stake in the air and chemical (Shanghai) ISO containers, to further strengthen the upstream raw material capacity.

Endogenous epitaxial semiconductor, the reconstruction of a three. The three III-V semiconductor such as gallium arsenide and gallium nitride as the core to build the integrated circuit industry, the proposed additional plans an annual output of 300 thousand GaAs and an annual output of 60 thousand inch GaN6 production line. At present, three 5000 / month GaAs has started trial production, is expected next year in production, GaN production line equipment is also gradually put in place. Future military, networking, 5G communications, such as the strong demand for compound semiconductor radio frequency, power chips, will ignite the compound semiconductor market after the outbreak of 4G. The fund 4 billion 840 million shares and $2 billion 500 million joint venture with three III - V compound integrated circuit development special fund, CDB 20 billion yuan low interest loans, Sanan group hands will have 40 billion yuan of funds available through overseas acquisitions to become the leading compound semiconductor is particularly looking forward to. The latest announcement of CDB 140 million annual interest rate of 1.2% low interest loans through lending Sanan Sanan group integration, coupled with previously many military, automotive business orders and subsidies, the national team also gradually reflect the dividend policy.

Optical communication is another potential growth point. In addition to LED and compound semiconductors, optical communication chip is another growth point of the company, is expected to start in 2016 to contribute hundreds of millions of revenue. Three in July with the Shanghai aerospace electronic communications equipment Research Institute announced the joint development and promotion of indoor and outdoor LED lighting intelligent communication (LiFi) products, car networking systems, photoelectric intelligent monitoring products of various integrated circuit applications, a solid step in the field of optical communication.

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