23 LED downstream listed companies' performance comparison: These four profits are going downhill!
On August 31, the first-half performance reports of A-share listed LED companies for 2017 were fully disclosed. Gaogong LED analyzed the mid-term results of 23 downstream LED applications and found that major revenue-generating companies have seen varying degrees of growth. In terms of net profit, 19 out of 23 companies reported an increase, excluding Shell, Meida, Lehman Shares, and Abbyson.
In the LED lighting sector, newly listed companies such as Op Lighting, Sanxiong Aurora, Debang Lighting, Huati Technology, and Tailong Lighting delivered impressive results. Among these, Op Lighting led in both revenue and net profit, achieving 3.01 billion yuan in revenue and 259 million yuan in net profit, a 41.29% year-on-year increase. Debang Lighting saw the highest revenue growth at 49.80%.
Established LED companies also performed well. Feile Audio reported total revenue of 3.372 billion yuan, up 11.39% year-on-year, with net profit surging by 347.44%. NVC Lighting, after overcoming internal conflicts, showed strong recovery, with revenue reaching 1.91 billion yuan and net profit rising 80.40% year-on-year. Similarly, Jin Laite improved significantly, recording a 36.21% revenue increase and a 25.33% rise in net profit.
Qinshang Shares, a company transitioning into education, demonstrated remarkable growth. After acquiring Longwen Education, it completed six educational asset acquisitions totaling about 4 billion yuan. In 2017, its revenue reached 865 million yuan, up 93.94%, with 380 million yuan from education and training, accounting for 44.01% of total revenue.
In the LED display field, Hengqiang and Liard stood out. Liard achieved revenue of 2.513 billion yuan and a net profit of 371 million yuan, with a 45.09% and 102.04% year-on-year increase, respectively. The company’s diverse business segments, including smart displays and VR experiences, contributed to its strong performance.
However, some companies faced challenges. Snow Wright, Meida Digital, Lehman Shares, and Abbyson all reported declining net profits. Snow Wright’s net profit fell by 20.45%, while Meida Digital dropped by 71.06%. Lehman Shares and Abbyson saw declines of 17.12% and 45.25%, respectively.
According to GGII data, the Chinese LED downstream market grew to 369.7 billion yuan in 2016, a 15.71% increase. It is projected to reach 455.1 billion yuan in 2017, a 20.4% rise. Rising raw material and labor costs pushed LED product prices into an upward cycle.
In 2017, global economic recovery and China's innovation-driven strategy created new opportunities. Technologies like IoT and smart cities spurred LED development. Government initiatives such as the "13th Five-Year Development Plan" and the GEF-SSLED project further boosted the industry.
The LED sector is evolving rapidly, with increasing competition and industrial consolidation. Companies are focusing on high-end applications and smart solutions. With the rise of smart cities, LED smart lighting is gaining momentum, expected to drive nearly 100 billion yuan in outdoor lighting output over the next five years.
As the industry matures, major players continue to reshape their strategies through mergers, acquisitions, and specialization. The competition among large firms is intensifying, with “big fish eating small fish†becoming a common trend.
Overall, the LED downstream market is experiencing a wave of transformation, with stronger players leading the way. As the industry becomes more concentrated, the race for dominance will only grow fiercer.
(Source: Gaogong Research Institute LED Research Institute)
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