Recently, we conducted a survey on Guoxing Optoelectronics and had in-depth discussions about the company's daily operations and future strategies.
Owing to small LED pitch, growing demand in landscape lighting, and increased production capacity, the company has seen strong performance.
1. The LED small-pitch market continues to thrive due to ongoing technological innovation, cost reduction, and enhanced display performance. This trend is driving demand for upstream LED chip manufacturing and mid-stream packaging. Additionally, the rise of urban landscape lighting and new PPP financing models have opened up fresh opportunities in the LED lighting sector.
2. Benefiting from the expansion of downstream LED applications and the concentrated release of packaging capacity, the company has experienced significant 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 reached 154 million yuan, a 62.44% increase. After deductions, net profit rose by an impressive 102.97%. The company also projected that net profit attributable to shareholders for January to September 2017 would be between 209.4365 million yuan and 261.7956 million yuan, representing a 60% to 100% growth compared to the previous year.
3. We believe that the small-pitch LED segment is entering a new high-growth cycle. As high-density and small-pitch LED applications expand, the demand for LED lamp beads will surge significantly. With industry-leading LED packaging technology, the company is well-positioned to overcome capacity constraints through continuous production expansion. This will lead to higher gross margins and sustained high-speed performance growth.
LED packaging is expanding and strengthening, with strategic layout across the entire industry chain and R&D of innovative products like VCSEL infrared.
1. The company remains optimistic about the long-term development of LED technology 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 running 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 aimed to invest no more than 200 million yuan to expand its display device production, with construction from March to July. In April 2017, a subsidiary planned to purchase equipment to support these expansion initiatives.
2. The company follows a strategy of "expanding packaging to become stronger and bigger, while integrating upstream and downstream operations." Through continuous production expansion, it aims to strengthen its core business in LED packaging and maintain its technological leadership through CNAS recognition. It has fully acquired National Star Semiconductor, adding the upstream LED epitaxial chip segment to its supply chain. By investing in RaySent Technology, the company gained access to high-power LED chips and silicon-based proprietary technologies, further strengthening its position in chip manufacturing. Additionally, it invested 10 million yuan in the Glory Semiconductor Industry Fund to enhance industrial resource integration. The company is also developing new products such as VCSEL infrared technology.
3. We believe that the expansion of the company’s LED packaging business will achieve economies of scale and improve profitability. A comprehensive industry chain layout will enhance its competitive edge, while the development of new products like VCSEL infrared will bring technological and product upgrades.
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Dongguan Andu Electronic Co., Ltd. , https://www.autoido.com