Guoxing Optoelectronics increases inventory to cope with price increases and production season

Guoxing Optoelectronics [32.60 -1.54%] (002449) released a semi-annual report today, as of the end of June, the company's inventory balance of 200 million yuan, an increase of 72% from the end of last year of 120 million yuan; of which raw materials inventory increased by 107%, Inventory goods increased by 78%. In response, Guoxing Optoelectronics explained: "Proactively increase inventory in response to tight supply and price increases, and supply of materials."

In addition, Guoxing Optoelectronics said that another reason for increasing the inventory of goods is to match the production season of air-conditioning customers. It is understood that in the air-conditioning production season of home appliance enterprises, Gree and Midea and other air-conditioning customers will require suppliers to increase supply to ensure the smooth production of air-conditioning, resulting in a 53% increase in inventory of off-site warehouses compared to the end of last year.

Everbright Securities [15.86 0.32%] researcher Zhao Lei said: "We are optimistic about the long-term development of the LED industry, in addition to the current home appliances and display applications, general lighting applications will be the company's main business growth point in the future. With the chip supplier's production capacity Expansion, the tight supply of LED chips will ease, and the inventory pressure of Guoxing Optoelectronics will slow down."

In the first half of this year, Guoxing Optoelectronics' operating income reached 410 million yuan, a year-on-year increase of 40%; net profit was 71.87 million yuan, a year-on-year increase of 45%, and net income per share was 0.33 yuan, exceeding the previous expectations of some research institutions. The company's core business SMD LED (SMD LED) has grown strongly, accounting for 82% of total revenue, highlighting National Star's focus on SMD LED core business, thus maintaining the leading position of domestic companies in this field.

Under the stimulus of the semi-annual report, Guoxing Optoelectronics' share price yesterday was strong. On the basis of the market down 32.02 points, Guoxing Optoelectronics opened at 31.30 yuan / share, closing at 33.11 yuan / share, an increase of 4.25%. According to calculations, since the listing of Guoxing Optoelectronics on July 16, it has risen from the opening price of 28.36 yuan / share to 33.11 yuan / share yesterday, an increase of 16.75%.

It is understood that display and home appliances are the main downstream applications of SMD LEDs. In the second quarter of this year, driven by the downstream home appliance industry, Guoxing Optoelectronics' operating income increased by 53% year-on-year to 230 million yuan. At the same time, the customer concentration of Guoxing Optoelectronics has increased. The revenue share of the top four LED customers has increased from 29% in the whole year of 2009 to 38% in the first half of this year; the proportion of the domestic market is also from the whole of 2009. 72% increased to 80% in the first half of this year.

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