Recently, LED packaging manufacturers in 2021 half-year performance has been released. In the past half year, how is the "report card" of LED packaging plate in Mainland China? What is the current state of the industry? Let us explore from each performance forecast!

2021H1 Performance picked up

In 2020, the LED industry was affected by the epidemic and its overall performance generally declined.

However, as the epidemic was brought under control, the LED market recovered. So in the first half of this year, the overall total revenue of the head packaging manufacturers compared with the first half of last year, the basic recovery growth, which Hongli Zhihui, Zhao Chi shares, Xiamen xinda, core Ruida four enterprises year-on-year growth of more than 50%.

In terms of net profit, Mullinsen and Hongli Zhihui saw rapid growth, up 180.79% and 259.2% respectively.

In addition, from the above manufacturers' net profit and buckle non-net profit, most of the head packaging manufacturers compared to the first half of last year showed obvious signs of growth.

Packaging plate is showing a super strong situation

Compared with last year, LED enterprise packaging plate business rose collectively.

Big brother Mulinsen remained in first place, leading the industry with revenue of 3.535 billion yuan in the first half of the year, up 80.75 percent year-on-year.

Hong god send LED semiconductor packaging were obviously, rise to rank the second place, hong said that god remit in the first half of this year, LED the market demand picks up, the LED semiconductor packaging orders demand, is affected by raw material price short-term fluctuations, but the company actively adjust the balance between supply and demand, so the encapsulation capacity effectively release and ascension, revenue and profits have obvious growth.

It is worth mentioning that Mega Chi shares to achieve leapfrog growth, in the first half of 2021 LED packaging sector to achieve revenue of 1.482 billion yuan, 65.18% year-on-year growth, not only ahead of the target, ranking also jumped from the fifth to the third, now Mega Chi Light to shenzhen Stock Exchange IPO application materials have been accepted, is still in normal progress; China starlight electric slightly down, the current package overall revenue ranked the top four; Dongshan precision packaging sector gross margin of 18.90%, in the packaging segment this year, the largest growth, compared with the same period last year increased 11.16%; Compared with the same period last year, Jufei's performance was little changed as it achieved growth in backlight applications last year and its performance was not significantly affected by the epidemic. In addition, Ruifeng photoelectric and core Ruida two performance shows a steady rise.

Looking at the financial statements of eight packaging enterprises, one of the key words worth paying attention to is "gross margin".

In this report card, most manufacturers achieved gross margin growth, among which Dongshan Precision achieved the highest growth, with a year-on-year growth of more than 10%. Mulinsen, Hongli Zhihui, Jufei photoelectric and other three enterprises generally higher than 20% gross margin. Ruifeng photoelectric packaging plate overall gross margin of 18.76%, although its packaging overall gross margin increased 2.30% year on year, but its display LED gross margin decreased 0.65% year on year, during the reporting period said that the gross margin decline is mainly caused by rising material costs.

While the core ruida performance this year to achieve growth, but gross margins have declined, down more than 5%. At the same time, in the industry is recognized as a good student jufei photoelectric in the first half of this year in the "mid-term examination" also fell into the "income does not increase profit" predicament. In view of the reasons for the decline in gross margin, the two companies have not disclosed the specific reasons.

Even if the gross margin of packaging manufacturers is not so high, but the competition of the head of the enterprise is also fierce, with the rapid promotion of catch-up, LED packaging link is showing a super strong pattern.

R&d/expansion in lockstep

As the LED market competition gradually enters the white-hot stage, the competition between various manufacturers is not only a single product, but the r&d strength behind the product. The figure below shows the overall r&d data

According to the expert news center statistics, 8 packaging enterprises in the first half of the total r & D investment as high as 1.2 billion yuan, of which 4 packaging enterprises r & D investment is more than 100 million yuan, most of the enterprise R & D expenditure has improved over the last year.

R&d investment is also positively correlated with product delivery. Up to now, mulinsen, Hongli Zhihui, Zhao Chi Shares, Guo Xingguang electric, Ruifeng photoelectric and other manufacturers have made major breakthroughs in products and technologies.

In addition, Hongli Zhihui, Ruifeng photoelectric, jufei photoelectric and other enterprises disclosed their capacity utilization rate in their financial statements, capacity utilization rate of more than 80%, product yield rate up to 99.1%.

Due to strong demand in the Mini/Micro LED market, most packaging manufacturers are expanding production in the first half of 2021.

According to expert Research statistics, by the end of the first half of this year, the overall industrial expansion of RGB lamp bead production capacity of more than 17000KK/ month. At present, manufacturers focus on the expansion of 1010 beads and 1212 beads, 1010 beads and 1212 beads expansion capacity accounted for about 70% of the overall expansion capacity.

Driven by market demand, the expansion competition has been mainly concentrated in the head of a few enterprises to the whole industry to participate in the participation greatly improved.

Now it can be seen from the financial statements, most of the head packaging manufacturers in 2021 construction project expenditure compared with the end of 2020, there is a significant increase, and some manufacturers expenditure amount of 100 million yuan units; Now many manufacturers have completed part of the project expansion, in the second half of the year will continue to expand according to the market demand, also in line with the development of LED market.

Seek new incremental markets

Since 2021, the LED industry is struggling to revive, especially to show the recovery of the market. Enterprises with technical strength continue to make efforts in the original market, but also turn their eyes to the new incremental market, Mini/Micro LED is one of the key directions.

Micro-pitch display market

In 2021, the display industry will return to the growth track, with the fastest growth rate of micro-spacing display. According to experts, data from the research center show that in 2021-2025, the compound growth rate of LED displays will reach 18.83%, accelerating to P1.8/P1.5/P1.2.

Mini/Micro LED is in full swing, and the demand for products below P1.0 is gradually becoming popular in the market. Mini LED products have also penetrated from the high-end market to the middle and high-end market, and gradually changed from special display to commercial display and then to the civilian field.

These changes are not only an opportunity but also a challenge for LED packaging manufacturers. However, based on the large amount of investment in the early stage of technology, Mullinsen, Hongli Zhihui, China star electricity and other manufacturers already have a plan.

Mullinsen said that Mini LED products are the new products it focuses on developing this year. At present, it has successfully developed the new manufacturing technology of Mini LED RGB display module, including Mini LED electrode technology, anisotropic conductive bonding technology, hot pressure reflux technology and related supporting equipment. And accumulated a number of matching invention technology.

Hongli Zhihui is fully committed to Mini LED project. In January 2021, Hongli Zhihui established Mini/Micro LED joint laboratory with South China University of Technology, striving to establish its core technology competitiveness; In terms of capacity scale, Mini LED phase I project has been successfully put into production and mass production has been provided for domestic mainstream manufacturers.

In terms of Mini LED, China Starlight electric research and development covers the whole series of Mini direct display P0.4 to P0.9 products, among which P0.4 uses the original 201N1 packaging mode, which is the highest packaging density of Mini products in the world at present.

5G+8K ultra HD display tuyere, LED packaging manufacturers together with downstream manufacturers, focusing on professional display, commercial display, and even civil market, is exploring a larger market.

Mini LED backlight market

Since 2021, apple, Huawei, Samsung and other leading brands continue to launch new Mini LED backlight products.

The emergence of Mini LED backlight technology, on the one hand to fill the gap between traditional LED backlight and OLED technology and market, become a new growth point of LED display enterprises; On the other hand, Mini LED applications drive packaging enterprise research and development and stimulate incremental market demand.

Driven by this demand, Mini LED backlight has become another hot flash point. At present, the LED packaging enterprises are stepping up preparations and put into production.

From the packaging side, most manufacturers have the ability to supply in bulk and achieve small batch supply, achieving a breakthrough from 0 to 1.

In the future, with the improvement of market heat and the continuous efforts of manufacturers' technology, the commercial development of Mini LED backlight will be accelerated.

Conclusion

Throughout the report card of packaging enterprises in the first half of 2021, the top enterprises have achieved good results, the overall revenue of the packaging plate has maintained rapid growth, and the profitability level is stable and improving. There are even manufacturers ahead of the completion of the established goals, performance to achieve leapfrog growth, full of momentum. Although the head enterprise competition is fierce, is now showing a super strong situation. However, with the rise and advance of the second and third echelons, they constantly seize the market share of the leading enterprises, and the future competition pattern is full of uncertainties.

From the perspective of application, enterprises have put in new capacity in an orderly manner, and industrial integration is taking shape. However, demand in the Mini/Micro LED market remains a strong driver of long-term growth for LED packaging vendors. Under the development trend of technology first, LED packaging enterprises will also meet greater challenges and enter a new stage of competition.