Micro Bo: raise investment project will solve the bottleneck of LED capacity

LED chip to solve production bottlenecks, Silan is actively promoting private placement issues.

Electronic components industry to go out from the trough last year, Silan performance soared. Company in 2009 to achieve the parent company owner income of 76 million 625 thousand yuan, an increase of 465%. Meanwhile, the company consolidated gross profit margin reached 28.13%, the highest level since 2000. Among them, the power device operating income grew 15%, gross margin of 26.62% for a record high. LED chip growth of 15%, gross margin was 40.5%. IC products benefit from product structure optimization, gross margin was 24%, better than the industry level of 9%.

AJ Securities researcher Zhu Zhiyong analysis to the author said, 2009 Silan gross margin increase was mainly affected by the upstream raw materials prices and downstream electronic components prices double results. Meanwhile, the equity investment projects will break through the company's current production capacity bottlenecks, greatly enhance the company's production capacity, to achieve mass production will continue to maintain the company's gross margin.

Current production capacity has become a bottleneck in the growth performance, prompted the company intends to increase capital expenditure. Zhu Zhiyong believes that although the company is in the leading position in the industry, but due to the small size company, wafer production capacity of about an annual output of 150 thousand, with three optical current annual output of 500 thousand pieces of epitaxial films of large scale gap. Moreover, Sanan optoelectronics plans to raise funds through reached an annual production capacity of 850 thousand.

This issuance, Silan plans to raise funds not more than 600 million yuan, of which nearly 500 million yuan for the expansion project. The scale of investment projects to build, the new purchase of production equipment about 312 units / sets for the expansion of the LED chip production line, the new epitaxial film of about 570 thousand / year, and add the chip about 7 billion 200 million / year. After the implementation of the project can realize the new Silan azure increased the brightness of the light emitting diode (LED) chip of 600 million particle / month, wafer production capacity of 47 thousand and 500 pieces per month.

Zhu Zhiyong said, domestic LED chip is used in indoor and outdoor full color field, our products have a large market share, in the blue and green chips, the company has become one of the largest manufacturing enterprises LED chip, Chinese. The private placement shows the company's confidence in the LED industry. After the completion of the project, the company will be able to achieve a substantial increase in LED epitaxial wafer and chip production capacity, and the gap between the gap narrowed significantly, enhance competitiveness.