June 02, 2020

The LED industry reappears and the expansion tide is still over the worries.

On September 12, Xiamen Xinda (000701) announced that it plans to raise funds of no more than 700 million yuan to invest in LED business. The reporter noted that this is not the first listed company to increase the expansion of LEDs in the near future. First, Furi Electronics (600203) will continue to do LEDs, and Guoxing Optoelectronics (002449) will raise funds to make LEDs. chip.

Less than half a month, there are three companies expanding in the LED industry, but some brokerage researchers told reporters that although the overall situation of LED in the upper, middle and lower reaches of this year is still good, the industry as a whole is warmer than in previous years, but the overcapacity situation Not eliminated, especially upstream.

700 million plus code LED

Xiamen Xinda announced that the company intends to issue non-public offerings of no more than 80 million shares, with a reserve price of 9.72 yuan/share, which is 14% lower than the closing price before the suspension, raising no more than 700 million yuan, and investing in Anxi LED packaging new project, Xiamen LED application product expansion project, RFID product design and production line expansion project. Anxi LED packaging new project is the focus of this investment, with a total investment of 430 million yuan, of which 390 million yuan will be raised; Xiamen Xinda Optoelectronics LED expansion project and RFID project will each invest 150 million yuan.

Anxi LED package new project will have six packaging production lines, in addition to the construction of LED packaging plant, research and development test center, storage center. The construction period is 24 months. It is estimated that the annual average profit after reaching the production will reach 44.601 million yuan. Xinda Optoelectronics LED expansion project plans to build four new lighting application production lines, and the project construction period is also 24 months.

According to the company, the construction of the above projects is conducive to expanding the production scale of the company's electronic information business segment, increasing the market share and market competitiveness of related products, promoting the development of the company's electronic information business, and promoting the company's "high-tech leading two wings" Develop strategies to optimize the company's overall profitability and sustainability.

Although Xiamen Xinda is full of confidence, the market does not buy it. The company's share price opened lower on the 12th, the biggest decline in the intraday period exceeded 6%, although the closing rebounded, but still fell 4.77% throughout the day.

LED industry reproduces the tide of expansion

The continued expansion of the LED industry is not the “exclusive action” of Xiamen Xinda.

Recently, Guoxing Optoelectronics (002449) also issued an additional issuance plan to raise funds of no more than 630 million yuan, and invested in the National Star Semiconductor Epitaxial Chip Project (Phase II) and supplemented with working capital. It is worth noting that the second phase of the National Star Optoelectronics project was urgently formulated during the first phase of production.

At the beginning of September, Furi Electronics (600203)'s plan to acquire Mairui Optoelectronics, which is the main LED display business, was rejected at the shareholders' meeting. Even so, yesterday, Furi Electronics chose to modify its plan and continued to insist on the acquisition of Mairui Optoelectronics.

In half a month, three listed companies have planned to raise funds to make large LEDs, and the expansion of LED capacity is looming. Recalling that from 2010 to 2012, under the double stimulation of low market thresholds and subsidies, funds continued to flood into the LED industry, resulting in a large expansion resulting in overcapacity.

In this regard, a brokerage researcher said that although the overall LED industry chain has rebounded significantly from previous years, the overcapacity situation has not been eliminated, especially in the upstream.

(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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