Guoxing Optoelectronics: There is still the possibility of explosive growth

The company's sales revenue in the first half of the year reached 405 million yuan, basically in line with our expectation of an increase of about 40%. Among them, SMD LED devices, which accounted for 60% of the company's business, grew the fastest year-on-year, reaching 67%. The TOP LED in SMD LED devices increased by 193.33% year-on-year, becoming the company's main profit growth point. In the second half of the year, with the gradual implementation of the company's fundraising projects, the growth of SMD LED devices will further accelerate. It is expected that the company's total sales revenue will increase by about 50% year-on-year. At the same time, the product structure is further optimized.

The company is based on the device packaging and actively extends to the upstream chip and downstream lighting. At present, it has a 15% stake in Xurui Optoelectronics, which specializes in the production of high-power white light chips. In the future, it plans to invest 100 MOCVDs in five years, all of which are 4-inch furnaces. At present, the factory is under construction, and the products will be launched before New Year's Day. One device will be subsidized by the Foshan Municipal Government for 10 million. The gross profit margin of terminal LED lighting products is above 70%. The company has set up a special semiconductor lighting division for product production and market development.

The company's explosive growth in the future is starting in the semiconductor lighting market. Regardless of the investment income of Xurui Optoelectronics and the explosive growth factors of semiconductor general lighting, the 2010-2012 fully diluted earnings per share were 0.75 yuan, 1.2 yuan and 1.8 yuan respectively. The company's growth is steady, and there is the possibility of explosive growth, giving a “buy” rating.