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Sanan Optoelectronic (600703. SH) is not only the leader of LED optoelectronics, but also the upstart of integrated circuits. Starting from LED chips in the lighting field, it extends to high-end chip fields such as Mini LED and Micro LED. It also spent a lot of money on PA RF, third-generation semiconductor materials and other fields. As long as it can lead the world in one of the tracks, it has a market value of 1000 billion.
However, despite the high-quality track layout, Sanan Optoelectronics is in a state of "green and yellow" and its performance has declined for eight consecutive quarters.
On the one hand, the traditional LED chips in Sanan Optoelectronics' main business are fiercely competitive and have overcapacity; On the other hand, the related products of Apple and Samsung, the important downstream manufacturers of Mini LED, have not been launched, and have not brought order revenue. PA RF chips are questioned that the yield is not high and the profit margin is compressed.
When can mini LED business provide profit?
Apple's launch of Mini LED is less than expected, and Samsung's production line is still under construction.
Since 20 17, the net profit returned to the mother achieved a high growth of 52.49%, Sanan Optoelectronics began to enter the industry winter. According to the financial report data, the company's net profit in the third quarter of 20 18, 20 19 and 2020 decreased 15.28%, 69.3% and 24.35% respectively, which was in a state of continuous decline.
So, why did Sanan Optoelectronics' performance decline so badly in recent years?
The main reason is that the overall growth rate of global LED chips slows down, and the supply of traditional lighting LED chips exceeds demand, and the price drops.
In recent years, the global LED production capacity has gradually shifted to Chinese mainland. In the process of capacity transfer, some small and medium-sized manufacturers have greatly increased their production capacity without reasonably improving technology, supporting facilities and customer layout, resulting in a phased imbalance in the supply of LED chips in the traditional lighting field, and the industry has entered an adjustment period. Faced with the decline in the sales price of LED chips, the profitability of many LED companies has declined.
In this context, companies in the industry began to adjust their strategies and expand high-end LED chips. With the accumulation of traditional LED field, Sanan Optoelectronics has laid out high-end LED projects such as Mini LED and Micro LED from 18. At present, it has achieved mass production supply to Samsung, become its first-class supplier and signed a supply agreement, and set up a joint laboratory with TCL Huaxing to promote the marketization process of Micro LED. In addition to cooperating with Samsung and TCL, we also sent samples of Apple, hoping to enter the Apple industrial chain. Another company, Huacan Optoelectronics (300323. SZ), also actively cooperate with manufacturers such as Sharp and LG.
However, these high-end LED projects have not released corresponding production capacity this year, mainly because downstream customers are not ready for technology application.
On September 2 1 2020, Tianfeng International Guo Ming reported that due to the better development progress than expected, Sanan Optoelectronics is expected to ship a large number of mini LED from 202 1 for iPad and Mac Book. However, Sanan Optoelectronics has not disclosed the acquisition of Apple orders so far, and this year Apple's new iPad and Mac Book have not used the new Mini LED screen. It can be seen that the technology is still in the preparatory stage, and the implementation of 202 1 is expected to need further verification.
On June 5438+065438+1October 15, 2020, foreign media reported that Samsung was building a mini LED backlight TV production line in Vietnam. At the same time, Samsung has revealed that it will launch the first Mini LED TV in the first half of 20021with a planned annual shipment of 2 million units.
Judging from the plans of major downstream manufacturers, Samsung is more likely to be the first company to launch Mini LED products, and the Mini LED production capacity will start to climb as soon as the end of 2020. Therefore, for Sanan Optoelectronics, it will take at least 202 1 year for this business to improve its performance.
The yield of PA RF chip is questioned.
The sales of integrated circuit products are heavy, but the increase in income does not increase profits.
The east is not bright and the west is bright. Although it will take some time to release the high-end LED production capacity, the semiconductor integrated circuit products of Sanan Optoelectronics have gradually released their production capacity this year, and the company's performance has rebounded since the first half of the year.
Sanan Integrated, a subsidiary of Sanan Optoelectronics, is mainly engaged in compound semiconductor integrated circuit business, covering chips in PA radio frequency (PA: power amplifier), power electronics, optical communication, filters and other fields.
Sanan Optoelectronics' revenue in the first half of 2020 increased by 5% year-on-year, getting rid of negative growth; In the first three quarters, revenue reached 5.9 billion, up 65,438+00.7% year-on-year; In the first three quarters, the net profit not attributable to the mother was 52 1 10,000, a year-on-year decrease of 24.35%, which was narrower than that of the same period last year.
The Quanzhou Semiconductor Park invested 33.3 billion yuan in 2065438+2007 by Sanan Optoelectronics has also set foot in the third generation semiconductor material Silicon Carbide (SiC), which is mainly used in the industrial chain of new energy vehicles such as main drive inverter, DC/DC converter, vehicle charger for charging system and charging pile.
For China, the third generation semiconductor is a brand-new track, and it is also a track that is relatively less controlled by the US. Global leading enterprises such as CREE Company of the United States and Sumitomo Electric Industry Co., Ltd. of Japan have just started to develop this business. At present, everyone started fairly. If we speed up the research, there is still a certain chance of overtaking in corners.
Quanzhou Sanan Semiconductor Company will gradually release its production capacity and contribute sales revenue from the first half of 2020. According to the interim report, Quanzhou Sanan Semiconductor Company achieved a revenue of 654.38+74 million yuan, a year-on-year increase of 1 136%.
However, it should be noted that the net profit of Sanan Integration in the first half of the year decreased by 865,438+0% year-on-year; Quanzhou Sanan's net profit decreased by 36% year on year.
The third quarterly report of Sanan Optoelectronics in 2020 showed that its gross profit margin was 29.3%, and its operating cost increased by 65,438+05.7% year-on-year, which was higher than the growth rate of operating income of 65,438+00.7%, resulting in a decrease of 3.65,438+0% in gross profit margin. During the period, the expense ratio was 13.2%, up by 0.6 percentage points over the previous year. Net interest rate 15.9%, down 5.7 percentage points year-on-year; Operating cash flow decreased by 56.7% to 6543.8+0.7 billion.
Semiconductor products must overcome the yield barrier from production to large-scale distribution. Although Sanan Optoelectronics obtained the access license of Huawei PA industrial chain, the low yield led to high cost, and the profit of integrated business was seriously under pressure in the first half of the year. If the yield cannot be raised to mass production level, it is not a long-term solution to complete the shipment only by spending money.