GLII: LED industry performance in 2013 is getting better

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At present, 23 high-tech LED industry research institutes (GLII) have focused on 25 LED listed companies, and 23 of them have released 2013 interim results announcements. Only Foshan Lighting and Lianchuang Optoelectronics have not released relevant information.

According to GLII statistics, 22 key LED companies (excluding Foshan Lighting, Lianchuang Optoelectronics, and Nanda Optoelectronics) had net profit attributable to shareholders of listed companies in the first half of 2013 totaling 1.604 billion yuan to 1.115 billion yuan, a year-on-year increase of 5 %-26%, the overall performance was better than the same period in 2012. In the first half of 2012, its net profit totaled 1.525 billion yuan, down 5% year-on-year.

Of the 23 companies that issued interim results announcements, there were 13 pre-increased performances and 9 pre-reduced performances, which can be described as a few happy ones. Among them, Wanrun Technology reported that the net profit attributable to listed shareholders in the middle of this year was -30%-20%, and the net profit for the same period in 2012 decreased by 6.78%. Specifically:

1) Many companies still do not increase their income. Despite the rapid growth of the lighting market, the demand for chips and packaging has grown rapidly. However, due to factors such as further decline in prices, many companies have still not been able to get rid of the predicament of not increasing profits, such as Huacan Optoelectronics, Ganzhao Optoelectronics, Lehman. Optoelectronics, Hongli Optoelectronics, etc.

2) The lighting market has developed rapidly and the lighting companies have performed well. This year, benefiting from the rapid demand for LED indoor lighting and outdoor street lighting market, the performance of Qinshang Optoelectronics, Sunlight Lighting and Changfang Lighting increased year-on-year and continued to maintain steady growth.

3) Government subsidies plummeted, and Sanan and Dehao's performance declined. Affected by the substantial reduction in subsidies, the performance of Sanan Optoelectronics and Dehao Runda in the first half of this year has “reduced from the increase”. The net profit attributable to the listed shareholders of Dehao Runda is expected to decrease by 30%-60% year-on-year. The year-on-year decline was 0.70%, and the gradual reduction of government subsidies in the later period will continue to affect the overall performance of the company.

In the first half of 2013, Sanan Optoelectronics received a government subsidy of only 81 million yuan, compared with 198 million yuan in the same period last year, a year-on-year decrease of 59.2%. Although Dehao Runda has not released its first-half performance report, it can get a glimpse of the company's first-quarter report data. In the first quarter of 2013, the company received government subsidies of only 0.11 billion yuan, compared with 102 million yuan in the same period last year, a year-on-year decrease of 89.5. %.

GLII expects the further increase of the lighting market in the second half of this year, which will further increase the demand for upstream chips and midstream packaging. The overall performance of the LED industry in the second half of the year is expected to continue to improve, and the annual results are expected to improve.

GLII latest industry research report:

1. "2013 China LED Driver Power Industry Research Report"
2. "2013-2017 China LED Street Light Research Report"
3. "2013~2017 LED Indoor Lighting Research Report"
4. "2013-2017 LED package bracket research report"

To purchase the above report, please consult

Contact: Mr. Zhang's phone: hb.

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