Jufei Optoelectronics: Large-scale LED backlights will take time to mass production

[New Industry Reporter Luo Gemei] Since its establishment in September 2005, Jufei Optoelectronics (300303.SZ) has continued to grow for eight consecutive years.

On March 19, 2012, Jufei Optoelectronics was officially listed on the Shenzhen Stock Exchange and was promoted to one of the leading companies in China producing backlight LEDs.

On August 3, 2012, the semi-annual report of Jufei Optoelectronics was released. According to the report, the company achieved revenue of 209 million yuan in the first half of the year, a year-on-year increase of 27.28%, and a net profit of 45.65 million yuan, a year-on-year increase of 10.91%. Among them, the backlight LED device revenue was nearly 170 million yuan, an increase of 17.36%. Lighting LED devices revenue was 30.92 million yuan, an increase of 180.54% year-on-year, and the proportion of total company revenue increased significantly from 6.7% at the end of 2011 to 14.9%.

According to the report, the company's large-size backlight LED devices have been cut into the field of liquid crystal displays, and have been certified by Hisense, Skyworth and Changhong. They are available in small quantities and are expected to rise steadily in the second half of the year. As the investment in lighting LED devices increases, the company's related revenue will also rise steadily.

"At present, the demand for large-size backlight market is strong. Choosing to develop large-size backlight LED device business is also a necessary link for the company to form a complete industrial chain." Jufei Optoelectronics Secretary Yu Fang told the "New Industry" that despite the current large-size backlight LED devices In the small batch supply phase, but if all goes well, the follow-up will soon enter the mass production phase. However, as the company's overall production capacity is still in the process of gradual release, it has not reached the conditions for mass production in the past six months.

Zhang Jiaxian, R&D director of Ruifeng Optoelectronics, revealed to the "New Industry": "LED large-size backlight devices from small batches to high-volume production, this cycle takes at least one year to one and a half years."

Small-size backlight LED devices have always been the biggest advantage of Jufei Optoelectronics, and its revenue accounted for more than 80% of the company's total revenue. According to the company's financial report data, in 2009, 2010 and 2011, the operating revenue of backlight LED devices accounted for 87.89%, 83.93% and 87.75% of the total operating revenue, respectively.

With the increasing market share and penetration rate of LED backlight LCD TVs, Jufei Optoelectronics has begun to gradually cut into the field of large-size backlight LED devices.

At the 2011 Annual General Meeting of Shareholders, Xing Qishan, chairman of Jufei Optoelectronics, said that in 2012, the company will seize the development opportunity after the listing, and take advantage of the existing small-size backlight LED devices to further consolidate and increase market share. At the same time, the sales scale of medium-sized backlight LED devices and lighting LED devices will be expanded, and the market introduction of large-size backlight LED devices will be accelerated, thereby increasing the company's revenue scale in many aspects.

"The company has always been market-oriented, and the size of the market has determined the company's production scale." Yu Fang pointed out that although the profit of large-size backlight LED devices is relatively low, it is also a profit growth point of Jufei Optoelectronics in the future.

An industry insider told the "New Industry" that Jufei Optoelectronics cut into large-size backlights. In addition to being market-oriented, another important reason is that the company hopes to extend to the large-size backlight market by leveraging the channel advantages of the original small-size backlight market.

However, it is clear that the market expansion of Jufei Optoelectronics is not a matter of course.

On the one hand, Jufei Optoelectronics should take into account the original small-size backlight market, and at the same time be constrained by its own expansion speed; on the other hand, from a small batch to a large batch requires a long-term downstream customer certification period, which also makes Jufei Optoelectronics The conditions for mass production cannot be achieved in the short term.

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