Jufei Optoelectronics' net profit increased by over 50%, and small-pitch LEDs gradually contributed to the performance.

Jufei Optoelectronics (300303) released its performance report on the evening of February 24th. The company achieved a total operating income of 1.509 billion yuan in 2016, an increase of 57.28% over the same period of the previous year; the net profit attributable to shareholders of listed companies was 155 million yuan, compared with the same period of the previous year. The increase was 51.62%.

According to the announcement, in 2016, the company continued to strengthen the construction of technology platforms, increase investment in research and development, product sales and market share maintained steady growth, and comprehensive profitability continued to be strengthened.

During the reporting period, the company's traditional business backlight LED and lighting LED products sales and market share have maintained steady growth; small-pitch display LED and other strategic new business development of the company is also relatively smooth, and gradually contribute to business performance.

According to industry analysts, Jufei Optoelectronics is a domestic small-size LED backlight faucet with a global market share of around 10%. The company's substantial growth was due to a lower base period in the same period last year. On the other hand, the rebound in the industry's economy boosted the company's revenue and profitability.

Since 2012, the company has expanded from small-size backlights to large-size backlights. It is expected that the company's small-size and large-size backlights will have a comparable volume in 2016. At around 500 million yuan, the large-size backlight business has been CAGR for the past two years. 48%, lighting LED and small-pitch LED business grew rapidly, the company's medium-term growth space has been opened, the main business is expected to return to rapid growth.

At the same time, the company expands its product line horizontally around existing customers, and lays out relevant business areas such as optical communication, optical film, small pitch, flashlight, etc., to cultivate medium and long-term growth points.

As a new business of the company, the optical film business has completed the sample delivery of Taiwanese manufacturers after several years of cultivation. It is expected to gradually form a supply after the follow-up. It is expected that the optical film business will achieve breakeven in 2017, considering the large scale of the optical film market. The new business is expected to be one of the new sources of growth for the company's performance.

In addition, the company plans to invest in the IC integrated circuit packaging and LED packaging and component production base in the Zhongxing Intelligent Technology Wuhu Industrial Park in Wuhu Economic and Technological Development Zone. It is expected to enter the heavy volume stage in 2018.


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