Lehman shares: firmly optimistic about the LED small spacing market, 2020 hope to launch Micro LED

Following the Rio and OPPLE lighting research, the LED display factory Lehman shares also received 29 institutional investors in 12. The company's chairman and President Li Mantie and vice president and Secretary of the board of directors, Luo Luo, entered the company with investors in terms of the company's current situation, market strategy, business cooperation and operation revenue and future development. In depth exchange and communication, the company's COB business has attracted strong attention from capital.

The capital is in good condition, and we will firmly strengthen the LED small spacing market in the future.

In introducing the company's current situation, Li Mantie said that Lehman's current assets and liabilities ratio was only 18%, lower than the industry average level, accounting for about 200 million of the cash, capital adequacy, and lower capital use cost and good capital status, goodwill face value of about 200 million, relatively less risk reduction, and current market capitalization of about 1 billion 800 million, net assets. About 1 billion 100 million, the city's net rate is relatively low, only about 1.64. The company has a relatively high share of the actual controller, holding more than 50%.

In the past two years, the company has less net profit, but the company's COB shows that the products can meet the customers' demand for innovation and differentiation by virtue of their excellent display performance advantages. The market has a good response, and the world has blooming all over the world, and tens of millions of shipments have been shipped in the first half of this year. At present, the COB small spacing occupies less than 5% in the LED small spacing market. With the continuous recognition of the market for COB display technology, the COB small spacing market space is very large. The company is expected to make use of the rapid growth of COB display panel business to form a differentiated competitive advantage, and the future development space and growth potential are huge.

In addition, Li Mantie looked forward to the company's future, said the company firmly optimistic about the future LED small spacing market, the company started two years ago from the COB display project, relying on more than a decade of packaging and display technology accumulation, COB HD display products have achieved mass production. The company has invested about seventy million, and is expected to invest one hundred million in the end of the year. The input to output ratio can reach 1:4. Next year, it will gradually release capacity and profit. Follow up companies will also use their own funds to further expand production, and continuously improve the market share.

Lehman shares is the first LED listed company in Shenzhen. At present, the market value is low. Future Ltd will focus on the high-tech LED industry. The COB small spacing LED display panel will be identified as the strategic focus of the product and technology in the next three years. We will continue to increase investment in this field, expand the existing capacity and create the core competitiveness of the company in the COB subdivision area. 。 At present, the traditional SMD products are homogenized, and COB packaging technology is very promising for the industry. It is considered to be the only way for LED display technology to Micro LED. It is estimated that the future COB small spacing LED display panel products will have a larger share in the LED small spacing segment market, and become the mainstream product of LED small spacing HD display in the next few years. The COB business in the next three years will also become the company's growth point.

COB business has received strong attention and institutional investors frequently ask questions.

According to the investor activity record released by Lehman shares, 8 of the 15 questions raised by investors are related to COB business in the interactive links.

Q: what is the current domestic market promotion of COB business?

Li Mantie: in the past, Lehman showed less products in the domestic market. Since the launch of the third generation COB HD display last year, the company believes that COB products with unique advantages can open the domestic market. As the application area is spread all over the country and the industry is also very extensive, so the company adopts the market layout of regional + industry. The region includes more than 30 provinces all over the country, including industry, public security, security, broadcasting, electricity, water conservancy and emergency centers.

The COB marketing strategy of the company is to form strategic alliances with high quality customers and implement the strategy of big customers. Through the establishment of cooperative relationship with strategic partners and the rich resources advantages of strategic partners in related industries, the company provides appropriate differentiated products, and gives appropriate room for profit making, so as to jointly expand and expand the COB products of the company. Next, the company will discuss with more than 100 partners to establish relations and work closely together to continuously enhance COB business marketing. There is a good trend now that domestic customers recognize the COB products of the company, and think that the COB products of the company can meet their requirements and will not be out of date in five to seven years.

Q: the price of the COB product of the company?

Li Mantie: at present, the price of the company COB will be about 10% higher than that of SMD, but the product performance is higher than SMD, and the use and maintenance cost is also lower. The price will decrease as the scale and yield of future products increase, and it is estimated that the price will be about 10% lower than that of SMD.

Q: what is the cost of chip products for COB products of the company? Is there a positive impact on the decline in chip prices?

Li Mantie: the chip accounts for about 20% of the material cost of COB, and the drop in the chip price will provide some room for reducing the price of the product. But at present, the chip needed by COB will be more demanding than the conventional chip with small spacing.

Q: does the company produce COB display panel equipment purchased by the company?

Li Mantie: the production equipment of the company's COB display panel is partly purchased domestically, part of which is customized overseas according to the company's technology and production needs. Therefore, the COB industry chain is relatively strict, with technical barriers and capital barriers.

Q: what advantages do the company COB have compared with the traditional surface products?

Li Mantie: at present, our self developed COB display panel adopts chip on board integrated packaging technology, which integrates the packaging and display technology. It has the advantages of high density, high protection, high reliability, high adaptability, high quality and low cost, and its comprehensive performance is higher than that of the current market surface products. At the present stage, its cost and price will be higher than that of the above products. However, with the drop of point spacing, the traditional SMD small spacing products have entered the bottleneck stage, and there are many product pain points, such as the stability of products is severely tested, and the maintenance cost is very high.

The third generation COB product developed by us is an updated product with LED small spacing. It has the characteristics of high protection, and has the advantages of collision avoidance, moisture-proof, shockproof, and positive waterproofing. High reliability has the characteristics of avoiding heat damage and natural health, and high adaptability, which can meet the characteristics of various environments in the room. It has the characteristics of high contrast, high resolution and high color gamut. Low use cost has the characteristics of low energy consumption, low maintenance and installation cost. From the perspective of production technology and cost, the COB technology has cancelled the SMD bracket and SMT reflow soldering links, without the risk of virtual welding, and the reliability is higher. The cost will decrease with the increase of mass production and yield. These characteristics make the relative products more cost-effective.

Q: how about the refund of the COB order?

Li Mantie: the company is a product equipment provider and system integrator, mainly for the system integrator to provide product matching, and the company's products because of its unique advantages, bargaining power is strong, so the order return money situation is better.

Q: how much is the gross profit margin of COB products?

Li Mantie: the gross profit of COB products is relatively high, and the net profit rate is relatively high, mainly due to the uniqueness of the products.

Q: is there any other company in China doing COB products? What is the difference between Lehman and them?

Li Man tie: there are two non-listed company in China also have COB products, but our product is the latest generation technology, adopting more advanced technology and technology route. As a listed company, the company has the advantages of capital and research and development. At the same time, the company has more than ten years' core packaging display technology and has dozens of COB related patents and know-how. At present, the company's COB products are ahead of peers for at least one to two years.

Lehman shares are expected to launch Micro LED in 2020.

Under the background of contention of new display technology, the application prospect of OLED, LCD, LED, Mini/Micro LED and other solutions has attracted the attention of institutional investors.

When it comes to the application prospects of OLED, LCD and LED in commercial display, Li Mantie said that this is mainly related to the size of display, and the 80 inch screen, LCD and OLED can scale mass production. LCD, OLED and so on will be of no commercial significance if they are more than 80 inches, and their price and performance will have a big bottleneck. More than 80 inches are currently mainly projection, including laser TV on the market, and the main solution is LED ultra small spacing. COB's excellent display performance and high reliability will have more advantages in large scale business. The projection itself has some limitations in terms of brightness, color and contrast. COB shows higher contrast, wider color gamut, better quality, more flexible and quick way of stitching and higher environmental adaptability. In the future, COB display panel has opened over 80 inches of market and projected market. Space will be subject to certain restrictions.

At the same time, Li Mantie also introduced Lehman shares about the layout of Mini/Micro LED. In Lehman's three year product plan, it plans to launch P0.9 Mini LED at the end of this month, and launch Mini LED of P0.6 in March next year. In the two quarter of 2019, P0.5 Lehman Mini LED is expected to be launched in the two quarter, and Micro LED is expected to be launched in 2020. Mini/Micro LED is a LED array with high density integrated on a chip. It is the next generation of micro spacing display technology based on COB encapsulation, and it is a further upgrade of small spacing LED. Lehman has the capability of flip chip COB encapsulation. Compared with the positive one, the inverted COB can make the size very small. It can solve the problem of high current density and high thermal resistance, and achieve high current density and uniformity. In the future, Mini/Micro LED also needs the cooperation of COB technology.

Finally, Li Mantie responded to the company's response to the Sino US trade war. He said the company's export business accounted for about 70%, of which the United States accounted for about 30% of the business. At present, the company is also adjusting its sales strategy. With COB opening the domestic market, the popularity of COB business continues to rise. It is expected that the growth of COB revenue will be larger in the future. The proportion of domestic business in the next two years will be estimated to exceed 50%. (finishing: LEDinside Nicole)

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