On August 24, Huacan Optoelectronics (300323) released its first half of 2017 performance report. During the reporting period, the company achieved operating income of 1.193 billion yuan, an increase of 94.64% over the same period of the previous year; deducted non-recurring gains and losses attributable to shareholders of listed companies. After the net profit of 127 million yuan, an increase of 474.28% over the same period of the previous year.
In the first half of this year, LED chip demand is relatively strong, prices are rising steadily, industrial concentration is accelerating, customer resources and orders are gathered to high-quality large-scale leading enterprises, and overseas market expansion, the company's market share and profitability continue to increase. .
The production rate of all products of Huacan Optoelectronics Co., Ltd. remained full, and the demand for products was in short supply. According to the market situation, the increase and release of new capacity was accelerated. The production and sales volume increased significantly compared with the same period of the previous year, which increased the capacity supply capacity of the company and sales of LED chip products. The number of LED chips increased during the reporting period. The price of LED chips in the reporting period continued to be stable from the fourth quarter of last year. The higher the capacity utilization rate, the lower the average cost per unit of product. The company's gross profit margin reached 33.72%, compared with the previous year. The increase was relatively large during the same period. The operating profit was 146 million yuan, an increase of 601.08% over the same period of last year. The increase in revenue and gross profit margin made the company's performance improved significantly during the reporting period, which became the main reason for the company's first-half profit growth.
Based on the 2016 acquisition, Blue Crystal Technology's performance has improved well, further enhancing the company's overall profit level. At the same time, the production efficiency and product performance of the epitaxial wafers were further improved, and the export revenue increased by 40.96% over the previous year.
Actively promote capacity expansion and construction of new plant construction and expansion investment projects, and continuously expand the market's dominant position.
In the first half of 2017, the demand for LED chips was strong, and the equipment was in full supply and still in short supply. Huacan Optoelectronics communicated with equipment manufacturers to speed up the delivery of equipment as soon as possible to install and debug and put into production, to meet customer needs. Starting from February, we accelerated the blue-green project in Suzhou, and expanded the production of red light. Wuhan equipment upgrade and upgrade was completed, further improving equipment production efficiency, achieving larger-scale effective output targets, and meeting the rapidly growing market demand. The Zhejiang subsidiary was successfully completed at the end of June 2017 and officially started production in July 2017. The production capacity will be gradually released in Q3, and the scale benefits will be expected. The company's sapphire substrate benefited from the synergy of mergers and acquisitions, the production capacity accelerated, and the scale of production and sales also increased significantly, ranking the industry leader.
With the capacity expansion of the company's production capacity in the second half of 2017, the production capacity is expected to reach 1.6 million pieces/month at the end of the year. By then, the company will stabilize the second position in the domestic market. Due to the concentration of the industrial chain and the market “bigger Evergrandeâ€, follow-up development The period of time, cost advantage, technical advantage, etc. will be more obvious.
Build a healthy supply chain to achieve a win-win situation for both supply and demand.
The overseas market business of Huacan Optoelectronics continued to grow steadily. The overseas OEM and high-end epitaxial wafer sales in the Korean market continued to increase, covering high-quality overseas customers. The company's competitiveness in overseas markets and brand influence have improved. Develop collaborative relationships with major customers, sign strategic cooperation agreements with core customers, and improve the professional service level of major customers. With the concentration of high-quality industrial customers, the speed of customer return is also greatly improved.
At present, Huacan Optoelectronics has become the main LED chip supplier of mainstream LED packaging and application enterprises in China. The long-term and stable cooperation relationship with major customers helps the company to fully share the broad market of LED downstream applications and promote the rapid development of the company's business. increase.
Huacan Optoelectronics has always been "doing the best LED products, the best LED enterprise" for business purposes, with a special focus on strategic win-win with downstream customers, the company's products are increasingly widely recognized by downstream packaging and application customers.
In addition, through the strategic mergers and acquisitions, Huacan Optoelectronics has made Blue Crystal's sapphire substrate a part of the internal supply chain, and gradually integrated into the company's corporate culture to help Huacan's business development. At the same time, it has taken advantage of the company's rapidly growing procurement scale and raw material procurement bargaining. Significantly improved capabilities and significant reductions in procurement costs. The advantage of large-scale procurement promotes strong bargaining power in the market and can reduce product costs through mass production.
Constantly consolidate internal basic skills and enhance competitiveness.
Through continuous improvement of production process management level, the goal of improving production efficiency and product yield is achieved. During the reporting period, the light efficiency of products continued to improve, among which the brightness performance of green and red light chips, the competitive advantage of white light lighting chips was significant; the flip-chip products were successfully launched and achieved stable mass production; quality management continued to improve, extension, chip good The rate has increased significantly, and external customers have complained about a significant drop. Due to the refinement of cost management, the scale effect brought about by the expansion of production, and the advancement of chip technology, the cost has dropped significantly.
Actively carry out strategic M&A expansion through the capital market to further enhance the status of the industry.
During the reporting period, Huacan Optoelectronics actively promoted the acquisition of Meixin Semiconductor Co., Ltd. Currently, the project is underway. In the future, the industry will compete fiercely to promote the development of large-scale mergers and acquisitions. The company will actively seek for various healthy development. The strategic expansion opportunities lay the foundation for further enhancing the company's position in the global industry.
On the same day, Huacan Optoelectronics released its forecast for the first three quarters of 2017. The company expects net profit attributable to shareholders of listed companies from January to September 2017 to be 338 million to 381 million, a year-on-year change of 140.00% to 170.00%.
Huacan Optoelectronics made the above prediction based on the following reasons:
1. Compared with the same period of last year, due to the large growth of the company's LED chip production capacity, the production and sales volume of the company's chip products increased significantly;
2. Under the scale effect, the company's chip cost has further declined, and the company's customer structure has further gathered to high-quality customers, so that the gross profit margin has maintained a good level.
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