Recently, Sanan Optoelectronics released the 2017 performance forecast. The report shows that Sanan Optoelectronics expects the net profit attributable to shareholders of listed companies in 2017 to be 3.15 billion yuan - 3.25 billion yuan, an increase of 983 million yuan -108 million yuan, a year-on-year increase of 45.39 million yuan. %-50.00%.

Sanan Optoelectronics continued to grow rapidly, benefiting from the continued boom in the LED industry. In the future, the continued expansion of the chip will further expand market share. In addition, the compound semiconductor business will be a point of future performance.

Chip prices steadily cut global competition and further optimize

Recently, with the gradual release of the production capacity of various chip manufacturers, many insiders have questioned whether there is a risk of landslides in LED chip prices.

In response to this question, Sanan Optoelectronics said that the price of chips should be reduced every year because the cost is declining. Whether it is an active price cut or a passive price cut, the active price cut is an action based on the cost reduction. As of now, the price of some chips of Sanan Optoelectronics has dropped slightly, but the overall price and gross profit margin are basically stable.

In fact, at the beginning of December 2017, the stable and small upward trend of LED chip prices for two years has come to an end, and the first price cut in two years has occurred. It is understood that the mainstream chips sold by Sanan and Huacan Optoelectronics have different adjustments, and the individual varieties have dropped by as much as 20%.

With the continuous rapid growth of the LED industry space and the steady decline in chip prices, the global competition pattern of LED chips is expected to be further optimized. As the absolute leader of global LED chips, Sanan Optoelectronics will further occupy the market share of LED chips at home and abroad.

In addition, the high growth of the LED industry will continue, and the steady decline in chip prices is expected to accelerate the position of the three safety ball leaders. Because the supply end is steadily lowering with the price of the chip, domestic small and medium-sized manufacturers and large European and American manufacturers will accelerate their withdrawal from market competition. The industry concentration will increase and the LED industry will accelerate its transfer to the mainland, further strengthening the position of the three safety ball leaders.

The demand side will continue to drive the industry boom under the high growth of general lighting, small pitch, automotive LED, and quad-IRLED applications.

Compound semiconductor deep layout opens 100 billion domestic alternative space

In fact, the rapid growth of Sanan Optoelectronics' 2017 performance is also inseparable from the promotion of the compound semiconductor business. In order to fill the gap in this 100 billion domestic replacement market, Sanan Optoelectronics has deployed the compound semiconductor business.

On December 5, 2017, Sanan Optoelectronics announced that the company intends to invest in the establishment of one or several project companies in Nan'an Park, Quanzhou, Quanzhou, Fujian Province, with a total investment of 33.3 billion yuan and an annual sales income of approximately 27 billion yuan.

The industrialization project is a high-end GaN LED substrate, epitaxial, chip R&D and manufacturing industrialization project; high-end GaAs LED epitaxy, chip R&D and manufacturing industrialization project; R&D and manufacturing of high-power GaN laser Industrialization projects; seven major projects such as R&D and manufacturing industrialization projects for optical communication devices.

In the future, Sanan Optoelectronics will strive to build an internationally competitive semiconductor manufacturer.


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