At the beginning of the 2017 New Year, with the further deepening of the supply-side reform, the supply-demand relationship will be further improved, and the low-end backward production capacity will be further eliminated. At the same time, a number of large-scale plants are still increasing their investment in capacity expansion in their supply chains.
Today, Hongli Zhihui (300219) announced that its wholly-owned subsidiary Liangyou Hardware plans to invest in Liangyou Electronics Project in Dalingshan Pianshan Industrial Park, Dongguan City. The total investment is 500 million yuan, and it will invest in building infrastructure such as headquarters office building, production workshop and living facilities.
The construction period of the project is 24 months, with two phases of construction, with a total construction area of ​​about 70,000 square meters. It is used to produce LED brackets, mobile phone accessories, precision molds, precision component products and services. The first phase of investment is 400 million yuan, which is expected to be completed and put into production before August 30, 2019.
Hongli Zhihui said that in order to meet the ever-expanding demand for production scale, Liangyou Hardware and Jincai Hardware have improved the layout of Liangyou Hardware and Jincai Hardware Production Workshop, and built production bases for LED brackets, plastics/hardware, etc. The overall competitiveness of the company to achieve sustainable and healthy development of the company.
In 2016, the LED industry is most concerned about the price increase of the industry chain. With the LED lighting application technology solution difficult to significantly innovate, from upstream chips, to packaging, to LED light sources, the price reduction is more moderate. However, the mitigation of price cuts may make it more difficult for companies to achieve substantial growth in revenue.
As some upstream chips and materials manufacturers no longer continue to sacrifice profits to lower prices, LED packaging costs have risen. However, part of the downstream lighting application demand and price expectations have not seen a significant increase, so packaging manufacturers face greater profit and order pressure.
In the long run, such pressure may have a serious impact on some small and medium-sized packaging plants, and it is expected to bring further reshuffle of the packaging industry and promote the concentration of the industry.
Earlier, Hongli Zhihui said in an institutional survey that since December 2016, the company's packaged products have begun to increase prices, mainly due to rising raw material procurement costs and market factors.
Although the package manufacturers began to increase the price of some devices from the end of last year. But the cost pressure has not been fundamentally alleviated. Recently, some insiders revealed that the price of some lighting lamps for Mulinsen will be raised by 15% and will be implemented immediately to reduce the pressure from rising raw material prices.
At the same time, the leading players in the industry, such as Hongli Zhihui and Mulinsen, tend to take advantage of scale and solid profits in the current market situation, and actively deploy segmented application markets, as well as through capital integration. Ways to achieve the expansion and development of its own share.
And Lin Lizhi also increased the supply chain investment, as well as Mulinsen.
Previously, Mulinsen (002745) issued an announcement to change the previous LED application lighting product investment project, and turned to LED lighting components. According to the strategic planning adjustment, the future business of Mulinsen's parent company and existing subsidiaries will focus on LED packaging and LED application lighting components.
The accelerated investment in the supply chain of Hongli Zhihui, Mulinsen and other packaging manufacturers is also related to the rapid release of their own production capacity this year.
In 2017, Hongli Zhihui's three LED production bases in Nanchang, Guangzhou and Shenzhen will integrate resources. The Nanchang plant was completed in July last year and will start production in August. The monthly capacity of LED packaging can reach 1200-1500KK, and will continue in the future. Expanding the scale of production capacity has become Hongli's largest production base.
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