Behind the advancement of Alto's Q1 performance: the landscape lighting market is booming

On March 20th, Alto Electronics released the first quarter results forecast for 2018. It is estimated that the net profit attributable to shareholders of listed companies will be 38 million-42.5 million, an increase of 317.67%-367.13%.

Alto Electronics said in the announcement that the main reason for the change in performance was the expansion of the company's operating income and the increase in orders. Of course, Gaogong LED believes that the substantial increase in the net profit of Alto Electronics is largely due to its layout in the field of landscape lighting.

In 2016, Alto Electronics entered the landscape lighting industry through the acquisition of Qianbaihui and effective resource integration on the company platform. At present, Qianbaihui has become one of the LED lighting design engineering enterprises with great influence in China in lighting equipment research and development, lighting engineering design, construction and service.

In recent years, Alto Electronics and its subsidiaries have successively obtained large orders for the landscape lighting industry. Landscape lighting has become an important driving force for the company's rapid growth.

Gaogong LED consulted Alto Electronics' 2017 semi-annual report and found that in the first half of 2017, its revenue in the field of intelligent landscape lighting engineering was 283 million yuan, and the gross profit margin was as high as 31.06%. Thousands of hundred years of completion of the annual performance of 28 million yuan of performance commitments.

Through Alto's electronic performance forecast, we can feel the continuous improvement of the landscape lighting industry and show explosive growth. The High-tech Research Institute LED Research Institute (GGII) expects that the size of China's landscape lighting market will reach 78 billion yuan in 2018, with a growth rate of around 15%.

The "rural revitalization strategy" mentioned in the two sessions this year is the first strategy of the 19th National Congress and tourism, and the connection between lighting and tourism industry is getting closer and closer. The development of tourism economy provides a broad market and growth opportunity for the lighting industry. It is believed that with the continuous deepening of the strategy, it will definitely expand the market space for LED outdoor road landscape lighting.

It is worth mentioning that such characteristic towns as Tianmen Wonderland in Zhangjiajie, Zhonghua Town in Luolu, and Guangming Town in Gaoyou rely on the beautiful natural environment to excavate regional culture and cultivate innovative industries to cultivate local industries. Construction and development inject innovative power. The construction of a characteristic town will definitely provide an inexhaustible driving force for the revitalization of the Chinese countryside.

In addition, since the beginning of this year, the National Development and Reform Commission has issued a number of investment plans. At the same time, trillions of infrastructure projects have also been launched. According to incomplete statistics, the total amount of annual key project investment plans announced by 25 provinces and municipalities exceeds 5 trillion yuan. In addition to transportation infrastructure, technological innovation, environmental protection, and precision poverty alleviation have become the focus of attention.

Benefiting from national infrastructure investment and cultural tourism policies, including the country's vigorous promotion of “characteristic towns” and “beautiful China”, the demand for lighting projects related to urban development has grown. At the same time, a large number of large-scale urban landscape lighting demonstration projects have emerged throughout the country: such as the Belt and Road Summit Forum, the G20 Hangzhou Summit, the Xiamen BRICS Conference, the Yangtze River First Light Show, etc. The rapid outbreak, the urban landscape lighting industry has ushered in unprecedented opportunities.

Thanks to the continuous heavy volume of the landscape lighting market, lighting engineering companies such as Liard Lighting (Jinda Lighting), Qianbaihui, Mingjiahui, Dart Lighting have successively won the bid for large-scale lighting engineering renovation projects and gained high in the industry. Influence.

In addition, LED packaging manufacturer Wanrun Technology has also taken the initiative in recent days, intending to acquire the equity of the two companies in cash, and lay out the landscape lighting field.

On March 14th, Wanrun Technology and Chen Rubing, Guo Qiongsheng and Hu Hua signed the agreement between Shenzhen Wanrun Technology Co., Ltd. and Chen Rubing, Guo Qiongsheng and Hu Hua on the payment of cash to purchase assets. Chen Rubing, Guo Qiongsheng and Hu Hua held them respectively. The 18.9428% equity, 29.07% equity and 3.012% equity of Zhongzhu Tianyou were transferred to Wanru Technology. Wanrun Technology acquired a total of 51.0248% equity of Zhongzhu Tianyou held by the counterparty in cash, with a consideration of 209 million yuan.

On the same day, Wanrun Technology and Jiangsu Zhongjingrong Enterprise Management Co., Ltd. signed the “Framework Agreement for Shenzhen Wanrun Technology Co., Ltd. and Jiangsu Zhongjingrong Enterprise Management Co., Ltd. on the payment of cash to purchase assets”. The company plans to purchase Zhongjing in cash. Rong holds a 51% stake in Langhui Optoelectronics.

It is reported that Zhongzhu Tianyou is a professional lighting engineering company with “Class 1 for urban and road lighting engineering” and “Special Grade B for Engineering Design Lighting” (its wholly-owned subsidiary Guangdong Zhongzhao Ruiguang Lighting Design Co., Ltd. Grade), "Electronic and Intelligent Engineering Professional Contracting Level", "Building Electrical and Mechanical Installation Engineering Professional Contracting Level 2" and other professional qualifications; and Langhui Optoelectronics also has urban and road lighting professional contracting level and lighting engineering design professional grade A certificate.

Through the acquisition, Wanrun Technology can further enhance its market competitiveness in LED lighting, especially in urban and road lighting.

Whether it is from the first quarter results forecast of Alto Electronics in 2018, or the achievements and strategic layout of key enterprises in the industry, the outbreak of landscape lighting market has become the key direction for LED enterprises to break through.


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