The policy stimulates mainland LED backlight manufacturers to "fill pots"

[Source: "High-tech new industry" December issue / reporter Luo Gemei]

Despite the overcapacity crisis in the LED industry, thanks to the gradual rise of China's flat panel display industry and the stimulation of domestic policies, domestic LED backlight manufacturers are still earning a lot of money.

In late October, three quarterly reports released by three LED backlight manufacturers, Ruifeng Optoelectronics (300241.SZ), Jufei Optoelectronics (300303.SZ) and Dongshan Precision (002348. SZ), showed significant growth in revenue and net profit of the three companies. The growth momentum is basically derived from LED backlight products, especially large-size LED backlight products.

"Although the overall domestic LED market is poor this year, the LED backlight market has been growing. The medium and large-size LED backlight market that has been monopolized by Korean and Taiwanese manufacturers in the past is constantly shifting to the mainland." Fan Zhencan, president of LED packaging manufacturer Yimeixinguang "New Industry" said that the domestic LCD panel industry chain is becoming more mature, and it also directly benefits the mainland LED backlight manufacturers.

It is reported that since April, the relevant state departments have increased the import tariff of LCD panels without LED backlight modules to 5%, which is the same as the tax rate of module-containing products, which has promoted the sales of mainland panel manufacturers and indirectly drove the mainland LED backlight products. Sales.

“Improving tariffs is a kind of protection for the domestic panel industry, and the energy-saving subsidy policy stimulates the demand for LED TVs,” said a senior executive of Nanjing Zhongdian Panda Household Appliances Co., Ltd.

Policy stimulus
Since April 1 this year, the tariff on LCD panels with 32-inch LED-free backlight modules has been raised from 3% to 5% in mainland China.

According to data from the Avi Consulting (AVC) monitoring market, domestic color TV sales in May also fell by 19% from the previous month. However, after the subsidy policy was implemented in June, the domestic color TV market began to pick up. In July, domestic color TV sales increased by 12%. %, August increased by 13% from the previous month.

According to Qunzhi Consulting data, the total purchase volume of LCD panels of domestic brand TV manufacturers in September was 5.368 million pieces, and the estimated purchase volume in October will reach 5.2 million pieces. Driven by the demand for the Mid-Autumn Festival in the Chinese market, the domestic brand color TV shipments reached 6.176 million units in September, the highest monthly shipments since 2012, with a year-on-year growth rate of 18.6%. Shipments can reach 14.5 million units.

A senior executive of Nanjing Zhongdian Panda Home Appliances Co., Ltd. pointed out that the penetration of LED TVs has reached 70%, and the recovery of the domestic color TV market has directly stimulated the demand for LED backlight products.

Based on this, Ruifeng Optoelectronics earned RMB 340 million in the first three quarters of this year, a year-on-year increase of 54.5%, and realized a net profit of RMB 36.21 million, a year-on-year increase of 30.5%. Among them, the third quarter revenue of 164 million yuan, an increase of 117%, net profit increased by 125% to 16.31 million yuan.

Gong Weibin, general manager of Ruifeng Optoelectronics, said that the LED backlight market will continue to be strong in the fourth quarter. It is estimated that the penetration rate of LED TV in 2012 will reach over 90%.

"New Industry" learned from Zhaochi shares (002429.SZ) that the LCD TVs produced by Zhaochi are all LED TVs.

TCL Group's recent sales data also shows that LED TV sales have risen to 80%. Dongshan Precision, as an upstream supplier of TCL TV L ED backlights, has also become a direct beneficiary.

Dongshan Precision Financial Report shows that in the third quarter, Dongshan's precision revenue and net profit increased by 94.06% and 582.2% respectively. Dongshan Precision said that LED backlight products have been in full production, and the company's LED packaging device capacity has expanded to 450 million per month.


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