Sapphire is an important substrate material for LEDs. Due to the development of LED industry, some companies involved in sapphire have experienced corresponding fluctuations in profits this year.
In the first half of this year, nine listed companies involved in sapphire in China showed their first-quarter reports and semi-annual reports. Some of them have steadily improved their business performance, while others have suffered serious losses. The difference between the two poles has also attracted the attention of the industry.
The Changjiang Business Daily reporter learned that with the popularization of high-end mobile phones and tablet lenses and home button applications, the application of sapphire materials has become more and more broad. Some insiders believe that sapphire will add $2 billion in market space this year.
However, whether the new market space will trigger a new round of capital injection, what will happen to the company, how the market will develop, and each ring will affect the hearts of investors. The reporter conducted an in-depth investigation and found that sapphire has become a feast of capital gambling not only two years ago, but also became a popular concept in the market this year.
9 sapphire companies are selling 8 singles and losing 1 huge loss
Recently, nine sapphire companies in China have released the first quarter report or semi-annual report this year. The reporter noted that the first quarter of this year's report showed that Tiantong shares (stock code: 600330) operating income reached 427 million yuan, an increase of 48.87% over the same period of the previous year; net profit attributable to shareholders of listed companies was 500.554 million yuan, The year-on-year growth was 326.38%. It is expected that the net profit attributable to listed companies at the end of the next reporting period will increase by 350% to 400% over the same period of the previous year.
Jinggong Technology (stock code: 002006) is also comparable to Tiantong. In the first half of this year, the company completed the merger of the company and realized sales income of 399,697,500 yuan (excluding tax), an increase of 85.01% over the same period of last year. The net profit was 29,790,200 yuan, an increase of 525.96% over the same period of last year.
Crystal Optoelectronics (stock code: 002273) achieved operating income of 658 million yuan in the first half of the year, an increase of 22.32% over the same period of last year; net profit attributable to shareholders of listed companies was 103 million yuan, an increase of 24.13% over the same period last year.
Luxiao Technology (stock code: 002617) completed operating income of 637 million yuan in the first half of the year, down 44.05% compared with the same period of last year. The net profit attributable to shareholders of listed companies was 38.237 million yuan, up 35.33% over the same period of the previous year.
An Jie Technology (stock code: 002635) operating income for the first quarter was 429 million yuan, an increase of 41.01% over the same period of the previous year. It is estimated that the net profit attributable to shareholders of listed companies from January to June this year will be about 126 million yuan to 154 million yuan, a change of 80% to 120% compared with the same period of last year. The company also predicted that the net profit for the first half of the year was close to 70 million yuan.
The semi-annual report of Zhonghuan Shares (stock code: 002129) showed that the company achieved revenue of 3.635 billion yuan in the first half of this year, an increase of 44.07% over the same period of the previous year. The net profit attributable to shareholders of listed companies was 251 million yuan, an increase of 168.68% over the same period of the previous year.
Jingsheng Electromechanical (stock code: 300316) had revenue of 179 million yuan in the first quarter, an increase of 61.17% over the same period of the previous year. The company expects net profit attributable to shareholders of listed companies from January to June this year to be 63.758 million yuan to 77.421 million yuan, a change of 40% to 70% compared with the same period of last year.
Ziguang Guoxin (stock code: 002049) semi-annual report shows that operating income was 646 million yuan, an increase of 15.76% over the same period of the previous year. From January to June, the net profit attributable to shareholders of listed companies was about 150 million yuan, an increase of 2.76% over the previous year.
However, another company in the sapphire sector, *ST Dongjing (stock code: 002199), lost 39.04% in the first quarter compared to the same period last year. It is estimated that the net profit attributable to shareholders of listed companies in the first half of this year will be about -207.04 million yuan and the net profit will be -45 million yuan to 65 million yuan.
Loss of performance*ST Dongjing faces delisting
Why do other companies develop steadily, and *ST Dongjing has a serious loss?
According to a survey conducted by the Changjiang Business Daily, among the profitable companies, Tiantong's various industries have increased in different degrees compared with the same period of last year.
The reason for the change in Seiko's technology performance was mainly due to the development of the domestic solar photovoltaic market, and the company's solar polysilicon ingot furnace business volume increased significantly.
Crystal Optoelectronics' optical business and reflective materials business continued to maintain good development, product sales grew steadily, and sapphire substrate business was affected by price decline, and it is expected that semi-annual performance will decline.
Lu Xiao Technology's decline in revenue in the first quarter of this year was mainly due to the sharp decline in sales of electromechanical equipment, especially optoelectronic equipment; and the continued weakness of the enameled wire industry also made the company's performance a decline.
In the first quarter, Anjie Technology expanded its production capacity to meet the customer's order demand, which greatly increased the sales revenue during the reporting period. The company's production automation level was significantly improved, which significantly reduced the cost in the production process and improved the company's reporting period. The profitability, gross profit margin and net interest rate have increased significantly compared to the same period last year.
By promoting process improvement and reducing product costs, Zhonghuan has fully utilized the advantages of the semiconductor materials industry and stimulated the development of the dual industry chain, which has made the company's products have significant brand advantages and cost advantages in the industry.
It is understood that Jingsheng Electromechanical Co., Ltd. is a leading supplier of crystal growth equipment in China. The crystal growth equipment products mainly serve the solar photovoltaic industry and the semiconductor integrated circuit industry. The reporter noted that the increase in revenue was mainly due to the significant increase in orders for crystal growth equipment signed by the company last year, and some equipments were accepted and confirmed revenue in the first half of this year. In addition, the company's single crystal silicon rod cutting and grinding integrated machine, cutting machine and other new products and high-end equipment service industry is also gradually developed.
Ziguang Guoxin's main business is the design and sales of integrated circuit chips, and is committed to providing users with advanced chip products and professional chip solutions. In the first half of the year, the company's core business continued to maintain healthy development and its business performance grew steadily.
Compared with other companies, the development momentum of *ST Dongjing is a loss for two consecutive years. This company, which has been in the sapphire field, experienced a surge in stock prices, actual controllers cashed in, and performance losses. It is now on the verge of delisting.
*ST Dongjing Electronics Co., Ltd. formerly known as Dongjing Electronics Co., Ltd., mainly engaged in research and development, design, production and sales of electronic components, computer and network products, and communication products. On April 25 this year, Dongjing Electronics Co., Ltd. (hereinafter referred to as “Dongjing Electronicsâ€) announced that from April 26, Dongjing Electronics implemented the delisting risk warning, and “East Crystal Electronics†changed its name to “* ST Dongjing."
The Yangtze River Business Daily reporter found that Dongjing Electronics has not developed smoothly in recent years. Between 2013 and 2014, the company's revenue growth and net profit growth could not be consistent. In the first quarter of 2016, the operating income for the first quarter of this year decreased by 39.04% compared with the same period of the previous year, and the net profit attributable to shareholders of listed companies decreased by 8.34%.
For the large loss, *ST Dongjing gave the explanation that the company's main business quartz crystal components and LED sapphire substrate series products market competition is fierce, product sales prices continue to decline, directly affecting the company's performance. Not only that, due to the continuous decline in the company's product prices, the market's changes in product specifications and other factors, the company's assets at the end of the year, the large amount of impairment provision, increased the impact on business performance. After the completion of the investment in construction of the sapphire project, the company's operating results also received a significant impact due to the significant increase in fixed amortization expenses and financial costs.
Sapphire has a huge potential for market development
In 2014, the global LED lighting market maintained rapid growth, with China, North America and Europe becoming the main consumer markets for LED lighting. With the rise of the LED lighting market, demand for sapphire substrates has rebounded.
According to the Changjiang Business Daily reporter, from the current application of sapphire materials, the demand for LEDs is expected to consume 2 million to 3 million pieces per month. With the popular high-end mobile phone and tablet lens, the popularity of home button applications, and the market entry of AppleWatch, the application of sapphire materials has become more and more extensive.
Since 2014, various funds have begun to inject into the sapphire industry, trying to get a piece of the sapphire screen of Apple's iPhone6 ​​and 6Plus phones. Although this expectation is ultimately defeated, at present, with the successful sale of Apple Watch, the market has now invested in the concept of “sapphireâ€. In fact, the application of sapphire in consumer electronics has brought huge development space for the industry. The industry believes that in 2016, the sapphire application market will have a new space of nearly 2 billion US dollars, which will be more than three times the market for LED substrate materials.
Among them, Berne Laughter Co., Ltd. (hereinafter referred to as "Bern Laughter"), which was jointly funded by Luxiao Technology and Bourne Optics Co., Ltd., attracted the attention of reporters. On May 5th, 2014, Luxiao Technology and Berne Optics established Berne Luxiao Company in Inner Mongolia. The company is mainly engaged in the processing, sales and research and development of artificial sapphire crystal materials with a registered capital of 500 million yuan. On March 12, 2015, the two sides increased their capital by 500 million yuan in the same proportion. Since then, the registered capital of Berne’s laugh has changed from 500 million yuan to 1 billion yuan. The relevant person in charge of Berne Luxiao Company once said that the company's entire production base covers an area of ​​300 mu, with a total planned investment of 2 billion yuan. After the project is completed, it will become one of the world's largest sapphire crystal production bases.
Apple has opened up the sapphire development space, and with the promotion of sapphire in the Apple product chain and other smart phones in the future, it is expected that the demand for sapphire will increase in the future. In addition to the huge investment of Berne's laughter, a number of sapphire concept companies, including Anjie Technology and Tiantong, are also making efforts. Sapphire's new market space has great potential for development. The widespread use of sapphire new materials in consumer electronics such as Apple's mobile phones will open up new business opportunities for sapphire, but it still needs to be prudently invested.
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