On April 18th, Alto Electronics and Zhouming Technology successfully attended the meeting and will land on the small and medium-sized board and the GEM respectively. The LED board of the A-share market will also add two new recruits.
There are too many things in common with the two companies in Shenzhen: the same day, the same amount of assets, the same LED industry, the main business is LED full-color display manufacturing, the plan to raise funds is basically the same, and even raise funds The investment is basically the same. However, under many similarities, the profitability of Alto Electronics and Chaon Ming Technology is quite different. The former has a small operating income but a high profit margin. Although the latter has 2.27 times the operating income of the former, the net profit finally obtained is only the former. 1.16 times.
“Since 2010, a wave of crazy LED investment booms has emerged in various economic systems, including the capital market. LEDs that have been out of the laboratory for more than 20 years are finally coming to spring, however, at the top of the LED industry chain. Epitaxial wafers, chip manufacturing oligopoly control and the middle and lower reaches of the package, the application of the group is in stark contrast." A researcher in the electronic components industry in Guangzhou told the "China Business News" reporter, Alto Electronics, Chau Ming Technology and other domestic LED application areas Vendors face the same problem: the swarming of excessive funds has made the LED industry more competitive, and the application field is subject to the top control of the industry chain, making it difficult to obtain pricing power.
"Working with different pay"
The same industry competitors will be the by-product of A-share expansion. On February 28, 2011, Yidun Electronics and Zhongjing Electronics, both of which were PCB boards, had a meeting on the same day, but Eton Electronics was cancelled for other reasons. On April 18th, Alto Electronics and Zhouming Technology, both of which are LED industries, were fortunate enough to succeed.
An interesting phenomenon appeared in the prospectus (filing draft) of the two IPO companies: Chau Ming Technology's 2010 operating income was 501 million yuan, net profit was 56 million yuan; Alto Electronics' operating income in 2010 was 220 million yuan, and net profit was 4,800. Ten thousand yuan.
The main business of Chau Ming Technology is LED full-color display and LED lighting manufacturing. In 2010, LED display system accounted for 93.27% of the main business. Alto Electronics is manufacturing LED display system and bank electronic return equipment, among which LED Full-color display accounted for 77.8%, which means that the majority of the two companies' main business income in 2010 were the same. However, according to the above operating income data, Zhouming Technology only exchanged 2.27 times of operating income for Alto Electronics. 1.16 times the net profit.
"The prospectus of the two companies has not detailed the classification of the net profit generated by the business classification. The LED display business of the two companies is different. Chau Ming Technology is a pure large-scale outdoor display manufacturing company, and Alto Electronics is the display. In the system manufacturing, the former has low gross profit margin, while the latter includes both large-scale display manufacturing and control system manufacturing that can make the display function properly. The gross profit margin is higher,†said the researcher, but this factor still cannot explain the net profit. Great difference.
According to the prospectus of Zhouming Technology (the draft), in 2010, a total of 44,700 square meters of LED display screens were produced, with an average sales price of 10,427 yuan / square meter. That is to say, its LED display business generated a total sales income of 466 million yuan in 2010. 93.27% of the main business income of 511 million yuan, the company's comprehensive gross profit margin was 24.94%; and Alto's main business revenue in 2010, LED display sales revenue of 172.7 million yuan, accounting for 77.8%, the comprehensive gross profit margin is 44.70%.
According to the Alto electronic prospectus (filing draft), the bank's electronic receipt system with a ratio of 22.2% has a gross profit margin of 36.46%, and the gross profit margin of the main business is 44.70%. That is to say, Alto Electronics' bank electronic receipt system is lowered. The comprehensive gross profit margin.
In summary, it can be seen that Alto's bank electronic return system gross profit margin is lower than its comprehensive gross profit margin, which does not constitute the reason that Alto's profitability is much higher than that of Chaon Ming Technology, and Chau Ming Technology only accounts for 6.73% of LED lighting business. It must not be the reason for explaining its low profitability.
“With the decline in raw material prices, the increasingly mature and stable production technology and the gradual expansion of production scale, the scale benefits are increasingly apparent, and the company's production costs are declining year by year, which makes the company's LED display products have a downward price. In 2009 and 2010 respectively. The decline of 17% and 11%, not only can maintain product cost performance, continue to increase market share, but also maintain a steady increase in gross margin." Zhou Ming Technology prospectus (declaration draft) is so expressed.
In the sales price change table of Alto Electronics, the sales price of LED display system business decreased by 21.41% and 14.76% respectively from 2009 to 2010, which is not much different from Zhouming Technology.
A lot of data shows that the two companies that belong to the LED display manufacturing are “different pay for equal workâ€.
“Dongshou and other senior executives are now in Beijing. After the success of the meeting, they still need to deal with the follow-up issues.†Alto Electronics’ secretarial office staff told reporters that it is inconvenient to explain the difference in profitability with Zhouming Technology, and Zhouming Technology The telephone number of the Secretary of the Board of Directors was not answered.
Pricing power is controlled by upstream oligarchy
In 2010, the LED industry was like the wind power in 2006 and the polysilicon in 2008. The funds from all walks of life flocked, and the investment boom has already started.
According to Philips' recently announced LED industry prospects report, by 2015, Philips' product portfolio will account for half of its lighting business, and Shenzhen LED Industry Association Secretary General Shi Shirong also told reporters that 2015 LED products will Achieving a 50% share is the consensus in the industry, and the outbreak is likely to be in the next two years, which is the reason for the investment boom in 2010 and 2011.
Among the four fundraising projects of Zhouming Technology, the LED lighting product expansion project plans to invest 36.93 million yuan, while the related R&D center and marketing system upgrades exceed 90 million yuan, which together account for a total investment of 313 million yuan. 40%. At the same time, like Alto Electronics, a larger percentage of funds raised is for high-end LED display projects.
"It is too early to talk about risks. After all, the real LED market has not yet broken out. No one can predict how sweet this cake is, but the epitaxial wafers at the top of the LED industry chain, chip manufacturing oligopoly control and midstream and downstream packaging and applications. The combination of the heroes is in stark contrast. However, the aforementioned researchers believe that the application of LEDs is very extensive. In 2009, the sales of domestic LED products accounted for only 10% of commercial and home lighting, and large LED displays and landscape lighting took up. Half of the country.
However, the researcher believes that whether it is commercial lighting, home lighting, LED display, landscape lighting, tunnel lights, the LED application field will not change due to the top control of the industry chain. “There are thousands of downstream application companies, and the long-term pattern, the pricing power is in the hands of the upstream, similar to the steel industry.â€
According to Wu Qingyi, Secretary of the Board of Directors of Zhejiang Sunshine (600261.SH), a well-known LED lighting company in China, in the cost structure of LED products, the high proportion of epitaxial wafers and chips is the main reason why LEDs are difficult to reduce the price, and the technical threshold of the chips is numerous. Domestic enterprises can't match. "In general, in the cost structure of household and industrial LED lighting products, chips account for about 40%, and landscape lighting chips account for a higher proportion." Wu Qingyi said.
The list of the top five suppliers of Alto Electronics and Chaon Ming Technology is the best embodiment of this oligarchic control. From 2008 to 2010, Huizhou Career Optoelectronics Co., Ltd. was the largest supplier of these two companies. Among them, in 2010, Huizhou Cree accounted for 19.16% and 12.75% of the purchase amount of Alto Electronics and Chau Ming Technology respectively. At the same time, the amount of purchases is on the rise every year.
There are too many things in common with the two companies in Shenzhen: the same day, the same amount of assets, the same LED industry, the main business is LED full-color display manufacturing, the plan to raise funds is basically the same, and even raise funds The investment is basically the same. However, under many similarities, the profitability of Alto Electronics and Chaon Ming Technology is quite different. The former has a small operating income but a high profit margin. Although the latter has 2.27 times the operating income of the former, the net profit finally obtained is only the former. 1.16 times.
“Since 2010, a wave of crazy LED investment booms has emerged in various economic systems, including the capital market. LEDs that have been out of the laboratory for more than 20 years are finally coming to spring, however, at the top of the LED industry chain. Epitaxial wafers, chip manufacturing oligopoly control and the middle and lower reaches of the package, the application of the group is in stark contrast." A researcher in the electronic components industry in Guangzhou told the "China Business News" reporter, Alto Electronics, Chau Ming Technology and other domestic LED application areas Vendors face the same problem: the swarming of excessive funds has made the LED industry more competitive, and the application field is subject to the top control of the industry chain, making it difficult to obtain pricing power.
"Working with different pay"
The same industry competitors will be the by-product of A-share expansion. On February 28, 2011, Yidun Electronics and Zhongjing Electronics, both of which were PCB boards, had a meeting on the same day, but Eton Electronics was cancelled for other reasons. On April 18th, Alto Electronics and Zhouming Technology, both of which are LED industries, were fortunate enough to succeed.
An interesting phenomenon appeared in the prospectus (filing draft) of the two IPO companies: Chau Ming Technology's 2010 operating income was 501 million yuan, net profit was 56 million yuan; Alto Electronics' operating income in 2010 was 220 million yuan, and net profit was 4,800. Ten thousand yuan.
The main business of Chau Ming Technology is LED full-color display and LED lighting manufacturing. In 2010, LED display system accounted for 93.27% of the main business. Alto Electronics is manufacturing LED display system and bank electronic return equipment, among which LED Full-color display accounted for 77.8%, which means that the majority of the two companies' main business income in 2010 were the same. However, according to the above operating income data, Zhouming Technology only exchanged 2.27 times of operating income for Alto Electronics. 1.16 times the net profit.
"The prospectus of the two companies has not detailed the classification of the net profit generated by the business classification. The LED display business of the two companies is different. Chau Ming Technology is a pure large-scale outdoor display manufacturing company, and Alto Electronics is the display. In the system manufacturing, the former has low gross profit margin, while the latter includes both large-scale display manufacturing and control system manufacturing that can make the display function properly. The gross profit margin is higher,†said the researcher, but this factor still cannot explain the net profit. Great difference.
According to the prospectus of Zhouming Technology (the draft), in 2010, a total of 44,700 square meters of LED display screens were produced, with an average sales price of 10,427 yuan / square meter. That is to say, its LED display business generated a total sales income of 466 million yuan in 2010. 93.27% of the main business income of 511 million yuan, the company's comprehensive gross profit margin was 24.94%; and Alto's main business revenue in 2010, LED display sales revenue of 172.7 million yuan, accounting for 77.8%, the comprehensive gross profit margin is 44.70%.
According to the Alto electronic prospectus (filing draft), the bank's electronic receipt system with a ratio of 22.2% has a gross profit margin of 36.46%, and the gross profit margin of the main business is 44.70%. That is to say, Alto Electronics' bank electronic receipt system is lowered. The comprehensive gross profit margin.
In summary, it can be seen that Alto's bank electronic return system gross profit margin is lower than its comprehensive gross profit margin, which does not constitute the reason that Alto's profitability is much higher than that of Chaon Ming Technology, and Chau Ming Technology only accounts for 6.73% of LED lighting business. It must not be the reason for explaining its low profitability.
“With the decline in raw material prices, the increasingly mature and stable production technology and the gradual expansion of production scale, the scale benefits are increasingly apparent, and the company's production costs are declining year by year, which makes the company's LED display products have a downward price. In 2009 and 2010 respectively. The decline of 17% and 11%, not only can maintain product cost performance, continue to increase market share, but also maintain a steady increase in gross margin." Zhou Ming Technology prospectus (declaration draft) is so expressed.
In the sales price change table of Alto Electronics, the sales price of LED display system business decreased by 21.41% and 14.76% respectively from 2009 to 2010, which is not much different from Zhouming Technology.
A lot of data shows that the two companies that belong to the LED display manufacturing are “different pay for equal workâ€.
“Dongshou and other senior executives are now in Beijing. After the success of the meeting, they still need to deal with the follow-up issues.†Alto Electronics’ secretarial office staff told reporters that it is inconvenient to explain the difference in profitability with Zhouming Technology, and Zhouming Technology The telephone number of the Secretary of the Board of Directors was not answered.
Pricing power is controlled by upstream oligarchy
In 2010, the LED industry was like the wind power in 2006 and the polysilicon in 2008. The funds from all walks of life flocked, and the investment boom has already started.
According to Philips' recently announced LED industry prospects report, by 2015, Philips' product portfolio will account for half of its lighting business, and Shenzhen LED Industry Association Secretary General Shi Shirong also told reporters that 2015 LED products will Achieving a 50% share is the consensus in the industry, and the outbreak is likely to be in the next two years, which is the reason for the investment boom in 2010 and 2011.
Among the four fundraising projects of Zhouming Technology, the LED lighting product expansion project plans to invest 36.93 million yuan, while the related R&D center and marketing system upgrades exceed 90 million yuan, which together account for a total investment of 313 million yuan. 40%. At the same time, like Alto Electronics, a larger percentage of funds raised is for high-end LED display projects.
"It is too early to talk about risks. After all, the real LED market has not yet broken out. No one can predict how sweet this cake is, but the epitaxial wafers at the top of the LED industry chain, chip manufacturing oligopoly control and midstream and downstream packaging and applications. The combination of the heroes is in stark contrast. However, the aforementioned researchers believe that the application of LEDs is very extensive. In 2009, the sales of domestic LED products accounted for only 10% of commercial and home lighting, and large LED displays and landscape lighting took up. Half of the country.
However, the researcher believes that whether it is commercial lighting, home lighting, LED display, landscape lighting, tunnel lights, the LED application field will not change due to the top control of the industry chain. “There are thousands of downstream application companies, and the long-term pattern, the pricing power is in the hands of the upstream, similar to the steel industry.â€
According to Wu Qingyi, Secretary of the Board of Directors of Zhejiang Sunshine (600261.SH), a well-known LED lighting company in China, in the cost structure of LED products, the high proportion of epitaxial wafers and chips is the main reason why LEDs are difficult to reduce the price, and the technical threshold of the chips is numerous. Domestic enterprises can't match. "In general, in the cost structure of household and industrial LED lighting products, chips account for about 40%, and landscape lighting chips account for a higher proportion." Wu Qingyi said.
The list of the top five suppliers of Alto Electronics and Chaon Ming Technology is the best embodiment of this oligarchic control. From 2008 to 2010, Huizhou Career Optoelectronics Co., Ltd. was the largest supplier of these two companies. Among them, in 2010, Huizhou Cree accounted for 19.16% and 12.75% of the purchase amount of Alto Electronics and Chau Ming Technology respectively. At the same time, the amount of purchases is on the rise every year.
Nantong Boxin Electronic Technology Co., Ltd. , https://www.ntbosen.com