LED packaging companies break the situation: the way to subdivide the track

Recently, Furi Electronics and Weishi Electronics have successively disclosed their 2025 performance forecasts, and the two companies have shown a trend of performance differentiation: Furi Electronics 'loss scale has narrowed significantly, and the operating conditions of core business segments such as LEDs have improved significantly; Weishi Electronics has been affected by multiple factors. Performance has been under periodic pressure, and net profit has declined year-on-year, reflecting the differentiated path of corporate development during the adjustment period of the LED industry.​

Furi Electronics: The LED and smart terminal sectors are making efforts, and the performance loss has narrowed significantly

On January 20, Furi Electronics released its 2025 annual results forecast, and the company's overall operating conditions continued to improve. The forecast shows that in 2025, the company expects the net profit loss to be significantly reduced, and the profitability of its main business will be significantly improved. The annual revenue will increase by approximately 33% year-on-year, the overall gross profit margin will increase by 1.8 percentage points, and the gross profit will increase by 400 to 500 million yuan., strong growth momentum.​

The core driving force for performance improvement comes from the improvement in operations in the smart terminal and LED sectors. Among them, the smart terminal business has achieved a substantial increase in order volume by focusing on high-quality core customers and continuing to promote refined management, providing solid support for revenue growth; the LED sector has steadily promoted business structural adjustment, and the product focus has shifted to medium and large power and vehicle vehicles. The light source packaging series accurately conforms to the industry's high-end transformation trend. At the same time, the backlight business focuses on the research and development of core technologies of Mini POB and CSP. The display business uses a technology + service two-wheel drive model to successfully promote overseas small-pitch products to enter the North American market and further expand profit margins.​

It is worth noting that based on the principle of accounting prudence, Furi Electronics made a total of approximately 370 million yuan in provisions for impairment of inventories, accounts receivable and goodwill in 2025, which will drag down the annual net profit. In terms of non-recurring profits and losses, the company earned a total of approximately 72.66 million yuan in revenue through investment income, government subsidies and other projects, partially hedging the impact of impairment.​

Weishi Electronics: Periodic factors are under pressure, focusing on the upgrade of in-vehicle display technology

Compared with Furi Electronics 'recovery trend, Weishi Electronics' performance is facing periodic challenges. On January 17, Weishi Electronics released its 2025 results forecast showing that the company expects to achieve a net profit attributable to the parent company of 21.49 million yuan to 26.16 million yuan, a year-on-year decrease of 53.27% to 61.61%; the net profit attributable to the parent company after deducting non-profit was 8.37 million yuan to 12.4 million yuan, a year-on-year decrease of 73.35% to 82.01%, and the profit level shrank significantly.​

Weishi Electronics said that the pressure on performance mainly stems from three phased factors: First, in order to lay out cutting-edge technologies, the company continues to increase investment in R & D, and R & D costs have increased; second, the new production line of its subsidiaries is in the stage of increasing production capacity, and the fixed cost allocation ratio is high, and the scale effect has not yet been fully released; third, the impact of exchange rate fluctuations has turned from positive to negative, causing additional impact on the profit side.​

According to public information, Weishi Electronics 'core business is the research and development and production of backlight display modules and liquid crystal display modules. The products are mainly used in mid-to-high-end automobiles, VR and other fields, and are deeply bound to in-vehicle display tracks. With the accelerated penetration of large-screen car displays, curved screens and Mini LED technology, the company is accelerating the iteration of new products and production capacity layout. In June 2025, Weishi Electronics announced that it plans to raise 480 million yuan to invest in a new lightweight vehicle display component project, focusing on expanding the production capacity of Mini LEDs and ultra-large-screen vehicle display components, and seizing market share of high-end vehicle display.​

Judging from past performance, the company's related core products have a good growth trend. From 2022 to 2024, Weishi Electronics 'sales of Mini-LED car backlight display modules increased from 3.3623 million yuan to 79.7104 million yuan, and sales of ultra-large-screen backlight display modules climbed from 11.1604 million yuan to 169.0714 million yuan. Both types of products have achieved rapid increase in volume, laying the foundation for a rebound in performance after subsequent production capacity release.