The price hike trend continues and the LED industry maintains a high boom. In January 2017, Sanan Optoelectronics raised the price of some chips by 8%, which is the second price increase since August 2016, reflecting the continued improvement of the LED industry.
Since Taiwan's Jingdian took the lead in raising the price of chips in May 2016, the price rise of the LED industry has been on the rise. Some upstream chips and midstream device manufacturers have adopted structural price adjustment strategies to raise the price of hot-selling products, ending the LED industry since 2010. After six consecutive years of price declines.
The first quarter is the traditional off-season of the LED industry. The company's continued upward adjustment of some product prices has once again confirmed our previous judgment on the relationship between supply and demand in the industry.
The current round of price increases in the LED industry has been going on for nearly a year. We continue to be optimistic about the continued release of downstream demand and the improvement of profitability of advantageous companies.
The company's production and sales are booming and the leading effect is obvious. Sanan Optoelectronics is a leading LED chip company. After years of intensive investment in equipment and R&D, the company's scale and technical advantages have been very obvious. It is in the leading position in the industry, and its gross profit margin is significantly better than other companies in the same industry. Some first-tier chip makers in Europe, America and South Korea have taken the initiative to limit production capacity and instead seek company OEM.
At present, Sanan Optoelectronics has about 290 sets of MOCVD equipment (converted into 2 inches and 54 pieces), which is in full production and full sales. The application field of LED products is still further expanding and expanding. General lighting, small-pitch display, automotive and other fields are expected to continue to maintain high growth. Optical communication and Micro-LED will open up new demand space as emerging application fields. With increasing production capacity, the company is expected to continue to launch new capacity in 2017.
The integrated circuit chip business has steadily advanced. Although the progress of Sanan Optoelectronics' integrated circuit chip business is not as expected, it is still steadily advancing. From the situation of the 2016 semi-annual report, the company has 263 customer design cases, 19 chips passed the performance verification, and some customers have started shipping.
Compared with traditional semiconductor materials, gallium arsenide and gallium nitride semiconductor chips have many excellent performances, and have occupied more than 70% market share in communication equipment applications. With the explosive growth of data transmission, the market space is broad in the future. The company has been deploying this business since 2014 and is expected to enter the performance contribution phase in the next two years.
The employee stock ownership plan highlights the company's development confidence. On November 24, 2016, Sanan Optoelectronics announced the second employee stock ownership plan, and plans to invest no more than 1.2 billion yuan to purchase the company's stock. As of December 23, 2016, the company has purchased 91,697,853 shares through the secondary market, amounting to 1,199,756,862.32 yuan. The second phase of the employee stock ownership plan has been purchased, and the average share price is 13.09 yuan, reflecting the employees' confidence in the company's future development. .
Dongguan Rongmao technology Co.,ltd , https://www.szroomoo.com