Recently, we conducted a survey on Guoxing Optoelectronics and had an in-depth discussion about the company's daily operations and future development plans.
The company is performing strongly due to small LED pitch technology, growing demand in landscape lighting, and increased production capacity.
1. The LED small-pitch market continues to thrive, driven by technological innovation, cost reduction, and improved display performance. This has boosted demand for upstream LED chip manufacturing and mid-stream packaging. Additionally, the rise of urban landscape lighting and new PPP financing models have created fresh opportunities in the LED lighting sector.
2. With the steady growth of the downstream LED market and the concentrated release of packaging capacity, the company has seen strong revenue and profit growth. In the first half of 2017, revenue reached 1.597 billion yuan, up 51.45% year-on-year, while net profit rose to 154 million yuan, a 62.44% increase. After adjustments, net profit reached 154 million yuan, up 102.97%. The company expects net profit attributable to shareholders for January–September 2017 to be between 209.4365 million and 261.7956 million yuan, representing a 60% to 100% year-on-year increase.
3. We believe that the small-pitch LED industry is entering a new high-growth cycle. As high-density and small-pitch applications expand, the demand for LED lamp beads will surge. Guoxing’s packaging technology is among the best in the industry, and with continuous capacity expansion, it can effectively overcome production bottlenecks. This expansion is expected to improve gross margins and drive sustained high growth in the company’s performance.
Expanding LED packaging capabilities, strengthening the industrial chain, and developing new products like VCSEL infrared
1. The company remains optimistic about the long-term prospects of the LED industry and is actively expanding its production capacity. In April 2016, it planned to invest up to 240 million yuan to expand its packaging and component projects, with construction from May 2016 to December 2016. In October 2016, another investment of up to 400 million yuan was announced for further packaging expansion, scheduled from December 2016 to June 2017. In March 2017, the company planned to invest up to 200 million yuan to expand its display device production, with construction running from March to July of that year. In April 2017, a subsidiary planned to purchase equipment to support these expansion efforts.
2. The company follows a strategy of "expanding packaging, becoming stronger and bigger, and integrating upstream and downstream operations." It continuously expands its production capacity to strengthen its core business in LED packaging and maintains its technical leadership through CNAS recognition. It also acquired full control of National Star Semiconductor, adding the upstream LED epitaxial chip segment to its portfolio. By investing in RaySent Technology, the company gained access to high-power LED chips and related proprietary silicon-based technologies, enhancing its upstream manufacturing capabilities. Additionally, it invested 10 million yuan into the Glory Semiconductor Industry Fund to better integrate industry resources. The company is also developing new products such as VCSEL infrared technology.
3. We believe that the scale effect from expanding its LED packaging business will enhance profitability. A well-integrated supply chain will strengthen its competitive edge, and the development of advanced products like VCSEL infrared will bring both product and technological upgrades.
Ev Fuse,Electric Vehicle Fuses,Evpack-Fuse,Amp Fuse
Dongguan Andu Electronic Co., Ltd. , https://www.autoido.com