San 'an Optoelectronics: Domestic products are becoming more and more involved, taking advantage of

On May 21, San 'an Optoelectronics revealed in a written reply to the First Financial Reporter that San' an Optoelectronics will accelerate its voyage this year, with its main foothold being high-end LED chips. At present, San 'an Optoelectronics has become a supplier of Apple Mini LEDs. On the same day, San 'an Optoelectronics also revealed at the online performance briefing that the project in cooperation with STMicroelectronics is planned to be launched by the end of this year (production lines will be completed).

San 'an Optoelectronics said that the main factory building has been capped and preparations for the commencement of internal decoration, equipment procurement, employee training, etc. are underway. The Anyifa project plans to reach production capacity in 2028, and the production capacity after reaching production capacity will be 10000 silicon carbide wafers per week. Chongqing San 'an will supply silicon carbide substrates.

Since last year, the LED chip industry has experienced a phenomenon of increasing income but not increasing profits. The financial report shows that San 'an Optoelectronics achieved revenue of 14.053 billion yuan in 2023, a year-on-year increase of 6.28%, and net profit attributable to the parent company was 367 million yuan, a year-on-year decrease of 46.49%; Among them, LED epitaxial chip revenue was 5.665 billion yuan, a year-on-year increase of 6.3%, and integrated circuit product revenue was 2.3 billion yuan, a year-on-year increase of 1.39%. The gross profit margins of these two businesses were 11.77% and 11.48%, respectively, a year-on-year decrease of 16.08 percentage points and 3.74 percentage points respectively.

In the first quarter of 2024, San 'an Optoelectronics achieved revenue of 3.557 billion yuan, a year-on-year increase of 22.33%, and net profit attributable to the parent company was 119 million yuan, a year-on-year decrease of 44.39%.

San 'an Optoelectronics said that the domestic market is becoming more and more volatile, especially in the traditional lighting market, where lighting accounts for a large proportion of LED chip applications. This year, San 'an Optoelectronics will strengthen product structure adjustment and accelerate its voyage to sea.

Terminal commercial displays, consumer electronics, and wearable products are the market focus of San 'an Optoelectronics this year. The company said that entering Apple's supply chain will help drive it to cooperate with more international customers, encourage it to increase investment in LED technology research and development, and strengthen cooperation with the industry. According to Arizton's data, the global Mini LED market will be approximately US$150 million in 2021 and is expected to exceed US$2.32 billion in 2024. The newly expanded production capacity of Mini LED and Micro LED chips in San 'an, Quanzhou and San' an, Hubei is gradually being released.

In addition, the automotive field is also the focus of San 'an Optoelectronics' going abroad. A wholly-owned subsidiary of San 'an Optoelectronics acquired WIPAC, an automotive lighting service company, in 2019, and obtained more advanced technologies and product lines.

San 'an Optoelectronics said that specific measures to go abroad include setting up branches overseas, strengthening cooperation with foreign companies, and expanding overseas sales channels and brand influence. At present, San 'an Optoelectronics has established R & D centers in Xiamen, Silicon Valley, Tokyo, Munich, London, and Singapore, and sales organizations are located in China, Japan, the United States, the United Kingdom and Germany.

On May 21, San 'an Optoelectronics rose 0.08% to 12.68 yuan/share. A recent research report by Changjiang Securities suggested that downstream demand for LEDs and semiconductors fell short of expectations, and that the technological advancement and customer promotion of compound semiconductor products fell short of expectations, which is its potential risks.