[High-tech LED News] National Star Optoelectronics 2011 first quarter report shows: in the first quarter of 2011, the company achieved operating income of 248 million yuan, an increase of 39.78%; comprehensive gross profit margin of 22.97%, down 9.52 percentage points year-on-year; The net profit of the company's shareholders is 25,509,800 yuan, and the fully diluted diluted EPS is 0.12 yuan. The net cash flow from operating activities per share is -0.35 yuan.

In the first quarter, the gross profit margin of the company's products fell by 3.8 percentage points from the previous month, which became the main reason for the decline in net profit. On the one hand, affected by product price cuts, the SMD packaging capacity of the whole industry expanded significantly in 2010, exceeding the growth rate of downstream demand, which put pressure on product prices.

In the first quarter, the price reduction of the company's device products was about 15%-20%, but the price reduction of component products was small. The company's equipment is depreciated on a five-year basis. The arrival of some new equipment in the fourth quarter has led to an increase in new depreciation costs, as well as rising wages and rising labor costs. This is also an important reason for the decline in gross profit margin.

Guoxing Optoelectronics is currently limited by the space of the plant, and the capacity increase has encountered bottlenecks. However, the company's recent re-planning of two new land purchased near the Jihua Road plant area has been completed and construction is about to start.

“The plant construction will be completed in the second half of this year and the middle of next year. From the beginning of the third quarter of this year, new plants will be put into use in the third quarter of this year. New capacity will be released in the fourth quarter, and the company’s capacity bottleneck is expected to be alleviated. "Industrial Securities analysts expect.

Furthermore, the company's LED lighting is gradually gaining acceptance in the commercial sector.

In the first quarter of this year, the company's lighting products revenue reached more than 37 million, an increase of more than 300% year-on-year, of which about 60% were exported to Europe and the United States, and about 40% were sold domestically. The company's LED lighting applications are mainly based on light source modules and fluorescent tubes. They have their own core patents on high-power devices (such as 6070), and they also form an important business for improving revenue and profit levels in the future.

The High-Tech LED Industry Research Institute (GLII) believes that although the LED display device business of Guoxing Optoelectronics is relatively weak at present, as the price of LED lighting application products continues to decrease, the price/performance ratio gradually appears, and LED lighting begins to be illuminated for a long time such as commercial lighting. The application is recognized. The LED lighting market has already shown signs of starting up. This has opened up a broader market space for domestic LED packaging companies in applications such as traditional display screens. In the future, the growth of National Star Optoelectronics is relatively optimistic.

At the same time, GLII believes that with the gradual increase of LED lighting application business and the easing of production bottlenecks in the second half of 2011, the company's profitability will be improved.

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