LED TV market penetration rate increases, LED LED backlight manufacturers accelerate production expansion

[Source: "New Industry" October issue reporter / Luo Gemei]

With the rapid growth of the penetration rate of the LED TV market, opportunities for mainland LED backlight manufacturers have also come.

On August 29, LED packaging manufacturer Ruifeng Optoelectronics (300241.SZ) announced that it plans to invest 150 million yuan to establish Shanghai Ruifeng subsidiary to implement the large-scale LED backlight LED technology transformation project and lighting LED product technical transformation project.

On September 1st, the TV foundry family Zhaochi (002429.SZ) announced that it will invest 40 million US dollars to set up Shenzhen Zhaochi Optoelectronics, focusing on the packaging of LED light-emitting devices and medium-high power LED light-emitting device packages. At the same time, Zhaochi also plans to invest 1.5 billion yuan to build the Zhaochi Innovation Industrial Park to solve the capacity bottleneck.

"With the increase in the penetration rate of LED LCD TVs, the market share of LED LED manufacturers in the LED backlight industry will grow rapidly." Zhang Hongbiao, research director of the High-tech LED Industry Research Institute, said that the LED TV penetration rate in 2012 has exceeded 70%, estimated 2013. The year will reach more than 80%.

Fan Zhencan, president of LED packaging manufacturer Yimeixinguang, told the "New Industry" that the demand for LED backlighting has been growing steadily this year. The medium and large-size LED backlight market, which was previously monopolized by South Korea and Taiwan, has gradually shifted to the mainland.

"With the maturity of the domestic LCD panel industry chain, domestic TV manufacturers began to rebuild the LCD TV supply chain system, coupled with the improvement of technology and cost reduction, the cost performance of mainland LED backlight products has been improved." Fan Zhencan said.

opportunity

According to data from the TRI Tuoba Research Institute, LCD TV shipments in 2010 increased from 142 million units in 2009 to 156 million units, reaching 180 million units in 2011 and 200 million units in 2012.

With the increase in penetration of LED LCD TVs, LED TV shipments have grown rapidly from 4 million units in 2009 to 63 million units in 2011, and will reach 120 million units in 2012.

Continental LED packaging manufacturers such as Ruifeng Optoelectronics have also become direct beneficiaries.

"New Industry" noted that in the first half of 2012, Ruifeng Optoelectronics earned 176 million yuan, a year-on-year increase of 21.97%, and net profit of 1989 million yuan, down 3.02% year-on-year. Among them, the medium and large size LED backlight revenue was 63.33 million yuan, a year-on-year increase of 30%.

In fact, Ruifeng Optoelectronics' large-size LED backlight revenue growth rate reached 30%, and has a direct relationship with its second largest shareholder, Konka Group. At present, Konka Group Kunshan Factory is one of the largest LCD module bases in China, with an annual production capacity of 4.2 million LCD TVs.

This time, Ruifeng Optoelectronics set up a subsidiary in Shanghai, which is undoubtedly to strengthen cooperation with the Konka Kunshan plant, and close to the LED backlight and lighting customers in the Yangtze River Delta region.

According to Ruifeng Optoelectronics' plan, after the Shanghai subsidiary's fund-raising investment project is put into production, the annual new sales revenue of LED light source devices will reach 600 million yuan, and the average annual net profit will be 63.36 million yuan, with a production time of 36 months. In other words, after three years, Ruifeng Optoelectronics' annual revenue can exceed 1 billion yuan.

Ruifeng Optoelectronics also reported that in 2011, the revenue from Konka reached 26.37 million yuan, reaching 20.95 million yuan in the first half of 2012, accounting for 9.06% and 11.9% of Ruifeng Optoelectronics' total revenue.

Unfinished

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