A number of listed companies will increase their income without increasing profits and the market will continue

On July 12, Lehman Optoelectronics released the performance forecast for the first half of the year. It is estimated that the net profit attributable to shareholders of listed companies will be 140.06 million yuan to 169.02 million yuan, down 20%~30% from the 2011.15 million yuan in the same period last year.

Lehman Optoelectronics is not an isolated case. Many companies including Moso Power and Hongli Optoelectronics released the first half of 2013 performance forecast. The forecast shows that although the operating income has increased by a certain margin, the profit still shows a downward trend.

Some analysts believe that the important reason for the increase in revenue is that the LED industry is fiercely competitive. The low-price market will continue to be sustained, and the gross profit of the products will continue to decline, dragging down the profits of the company.

A number of listed companies have fallen in profits

In the first half of this year, the LED terminal market changed its past year's downturn and showed a booming development. The stock price of LED-related stocks was even more bullish. However, with the release of the first half of 2013, the “Daily Economic News” reporter found that the profits of many LED companies have not been substantially improved, and the phenomenon of increasing income without increasing profits is quite common.

For the reasons for the change in performance, Lehman Optoelectronics said that in the first half of 2013, the company actively explored a new business profit model. As new business and new fields are still in the early stage of investment, human resources and various expenses are invested. As the new industrial park was completed and put into operation, the operating expenses during the reporting period increased year-on-year, resulting in a decrease in net profit compared with the same period last year.

In 2010, when Lehman Optoelectronics went public, the company's operating income was 206 million yuan, a year-on-year increase of 102.77%. The net profit attributable to shareholders of listed companies reached 38.876 million yuan, an increase of 81.94%.

Subsequently, the high growth of Lehman Optoelectronics' profit will not continue. In 2011, the company's operating income increased by 27.79%, but the net profit attributable to shareholders of listed companies was only 33.109 million yuan, down 15.03%; in 2012, this situation Although it did not improve, although the operating income maintained a growth of nearly 20%, the net profit was 22,649,100 yuan, down 31.59% year-on-year. As of the first half of 2013, the company still did not emerge from the shadow of falling profits.

In fact, in addition to Lehman Optoelectronics, many other LED companies have also experienced a decline in profits in the first half of this year. Hongli Optoelectronics expects its operating income to increase by 20%~30% compared with the same period of the previous year, but the net profit attributable to shareholders of listed companies decreased by 25%~35% year-on-year; the total revenue of Maoshuo Power increased by 10%~15%. And profits also have a decline of about 10% to 30%.

In addition, the net profits of LED-related companies such as Huacan Optoelectronics, Dongshan Precision, and Aoyang Shunchang have also declined to varying degrees.

Profit for the market will continue

The reporter of "Daily Economic News" found that income growth and profit decline have a lot to do with the decline in the gross profit of the company's products. In 2010, the gross profit margin of Lehman's photoelectric in-line LED devices was as high as 40.65%, the gross profit margin of SMD LED devices was 28.41%, and the gross profit of display screens reached 43.06%.

In the following years, the gross profit of these products has dropped significantly. By 2012, the gross profit margin of Lehman's in-line LED devices dropped to 14.66%, the gross profit of SMD LED devices dropped to 22.75%, and the gross profit of the display dropped to 34.85%.

In the announcement, Hongli Optoelectronics said that during the reporting period, the LED lighting market demand was strong, effectively releasing the company's production capacity, and operating income increased to a certain extent, but the product sales price decreased year-on-year, causing the gross profit margin to decline.

In this regard, Hongshi Bin, executive director of the Marketing Committee of China Household Appliances Business Association, told the reporter of "Daily Economic News" that there are currently overcapacity in the LED industry, and there are many enterprises and the competition is fierce. Although terminal sales have improved, companies still have to sacrifice profits in exchange for market share. It is envisioned that this profit-for-market model will continue in the next few years.

On July 15, the reporter contacted Lehman Optoelectronics and Hongli Optoelectronics as an investor. A person from the Lehman Optoelectronics Securities Department said that the company will strengthen management, improve production efficiency, and actively expand the market. The relevant person of Hongli Optoelectronics said that the company will take various measures to save the company's expenses as a whole.

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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