It is difficult for the LED industry to recover in the first half of 2022

In the first half of the year, the 51 listed companies mainly engaged in LED achieved operating income of 69.186 billion yuan, a year-on-year increase of 2.75%, and realized a net profit attributable to the parent of 4.753 billion yuan, a year-on-year decrease of 17.21%. , Jiuliang shares, Space-Time Technology, Huati Technology, Mingjiahui, Horsai and other 8 companies have lost net profit attributable to the parent. Among them, the net profit of Mingjia remitted to its parent decreased by 692.18% year-on-year.

From the perspective of operating income of each segment, the midstream packaging link and downstream engineering applications showed negative growth. The year-on-year growth rate of the segment revenue from high to low is: downstream lighting 12.21%> material matching 11.31%> downstream display 3.09%> 51 average 2.75%> upstream chip 2.45%> midstream packaging-6.92%> downstream engineering-25.36% ; From the perspective of net profit attributable to the parent, contrary to the negative growth in the net profit of lighting applications and display applications in the same period of 2021, in the first half of 2022, only the net profit of downstream lighting applications and display applications has achieved rapid growth, and other industrial links have negative growth. situation. The year-on-year growth rate of net profit of each segment is in descending order: downstream display application 69.74%> downstream lighting 22.35%> upstream chip-4.12%> 51 average-17.21%> midstream packaging-44.25%> material matching-46.32%> Downstream Engineering - 81.54%.

From the perspective of profitability indicators, the overall gross profit margin of LEDs continued to decline. In the first half of the year, the gross profit margin was 25.64%, a year-on-year decrease of 5.95%. The gross profit margin of chips, packaging and supporting materials fell by more than 10%. The sluggish demand side has dragged down the overall net interest rate of the industry, which has dropped significantly, from 8.50% last year to 4.90%, a drop of nearly half. The net profit margin in the field of landscape engineering dropped by more than 100%. The recovery of the LED industry is sluggish, enterprises are strengthening transformation and upgrading, and R&D investment has continued to increase, with a growth rate of nearly 15%. Enterprises that focus on technology research and development and brand building will be more sustainable in future competition.

The overall operating income of the four main listed LED chip companies was 9.879 billion yuan, a slight increase of 2.45% year-on-year; the net profit attributable to the parent was 1.000 billion yuan, a year-on-year decrease of 4.12%; the deducted non-net profit all declined, with an overall decrease of 93.13% year-on-year . Deducted non-net profit decreased by 28.38% year-on-year, and the other three companies all suffered losses after deducted non-net profit. For the decline in performance, companies all said that due to the impact of the economic downturn, the demand market has shrunk. However, niche market segments such as high-end lighting, Mini LED, automotive LED, and horticultural lighting remained resilient.

The overall performance of Sanan Optoelectronics rose, but the LED epitaxial chip business fell by more than 10%. In the first half of 2022, the operating income was 6.762 billion yuan, an increase of 10.60% over the same period last year. Among them, the LED business revenue was 5.300 billion yuan, and the integrated circuit business revenue was 1.462 billion yuan. The overall revenue of the LED epitaxial chip business decreased by 11.53% year-on-year. Among them, the sales revenue of traditional LED epitaxial chips decreased by 24.10% compared with the same period of the previous year. The business scale of Mini/Micro LED, plant lighting, automotive lighting, ultraviolet, infrared and other high-end LED fields further increased. The sales revenue increased by 84.80% over the same period of the previous year.

In the first half of the year, the operating income was 1.283 billion yuan, down 19.53% from the same period last year, and the net profit attributable to the parent was 11 million yuan, turning losses into profits. HC Semitek stated that the revenue decline business is mainly concentrated in low-end traditional general LED lighting, while the performance of high value-added products such as Mini LED, automotive LED, and horticultural lighting has continued to grow.