subject: Hongli Opto-electronic: White Led Will Continue To Benefit From 24 Yuan To Maintain Holdings Of The [print this page] Hongli Opto-electronic: white LED will continue to benefit from 24 yuan to maintain holdings of the target
This reporter has learned that the first half operating income of 273 million yuan, an increase of 36.7%; attributable to parent company net profit of 37.18 million yuan, an increase of 26.1%. Benefit from the rise of LED lighting market, the company's largest business SMD package revenue growth of 49.9%; subsidiaries as the main LED application products increased 48.5%, the effect is gradually emerging from the package to the application integration strategy.
The first half gross margin of 34.9%, a slight decline of 0.3 percentage points over the previous year, the LAMP LED packaging operations gross margin decreased by 7.2% is the main reason, while the gross profit margin of the former two business SMD package and LED applications are a slight upgrade. As China's phase-out incandescent roadmap for the introduction of the incandescent lamp in five years to gradually withdraw from the domestic market, energy-saving lamps and LED lighting will undoubtedly usher in a more clear development prospects, the rare-earth prices and the decline in the cost of LED lighting is making enhance the relative competitiveness of the LED lighting. Lighting applications, the main application of white-packaged devices, the company is the leading white LED devices, packaged devices are more than half of the white product. Therefore, LED lighting and applications, the company compared with competitors to have some first-mover advantage.
Expected 2011-2013 EPS were 0.68,0.97 and 1.27 yuan, giving six month target price of 24 yuan, corresponding to 2011 and 35 times PE.
Optimistic about the company's prospects for the future package gives the holder the rating
In the first half of 2011 operating income of 272 million yuan, up 36.73 percent over the same period last year; total profit of 49.32 million yuan, an increase of 39.07% over the same period last year; net profit of 37.18 million yuan, an increase of 26.10% over the same period last year. EPS of 0.38 yuan in the first half results in line with our expectations.
LAMP LED gross margin fell by 7.2% in the first half of SMD LED and LED application products, gross margin rose 0.16% and 0.58% respectively, significant differences of three types of gross margin changes, the LAMP LED negative revenue growth, gross margin declined, primarily intense competition caused by the decline in gross margin, and two other revenues year on year increase of 49.98% and 48.48%, gross margin rose slightly, the scale effect of cost control is better.
The downturn in the industry boom environment, Chung PO beautiful first half of the industry as a whole weak environment, the company to produce such a beautiful mid-year report, reflecting the company's good competitive advantage, as well as excellent management level. The first-half profit up 39.07 percent, faster than the three costs year-on-year growth rate of 30.39%.
Optimistic about the company's future prospects of companies and applications run mode package using package and application development model to enhance the company's core competitive advantage, and the company has been focusing on industrial R & D and technology accumulation, raise funds for construction projects of new surface-mount LED technology R & D center construction projects, LED lighting technology and industrialization projects. Extension to the LED lighting direction based on their packaging technology development. This model has a strong industry understanding and technical support. Must enjoy a high dominant position in the development process to the lighting field competition.
We maintain our 2013 earnings forecast of 2011, operating income of 590 million yuan, 868 million yuan, 13.40 billion, attributable to equity holders net profit of 086 million yuan, 112 million yuan, 176 million yuan, corresponding to earnings per share 0.70 yuan, 0.92 yuan and 1.44 yuan, to give the company 12 years 25 times -30 times a reasonable valuation range, corresponding stock price of 23.00 yuan -27.60, raising our target price of 27.60 yuan, giving hold rating.
