Absen: deep ploughing LED display, 2021 revenue pre-increase of 42%

Founded in 2001, Absen's main business is the research and development, production and sales of LED full-color displays. In 2005, Absen became the first company in China to bring LED products to overseas markets, and subsequently, Absen began to focus on exploring overseas markets. As of 2019 before the epidemic, Absen's overseas revenue accounted for 74.61%.

By early 2020, the outbreak was spreading across the globe. Absen quickly adjusted its strategic layout, grasping both domestic and foreign markets, and has now achieved great results. On the evening of January 4, 2022, Absen released the 2021 performance forecast, saying that the company's 2021 pre-profit was 23 million yuan - 31 million yuan, a year-on-year successful turnaround.

Overseas markets continue to recover, and the domestic market grows rapidly

In the performance forecast, Absen pointed out that the company achieved operating income of about 2.33 billion yuan in 2021, an increase of about 42% year-on-year; of which the fourth quarter achieved revenue of about 920 million yuan, an increase of about 64% over the third quarter operating income of 560 million yuan, an increase of 92% over the second quarter operating income of 480 million yuan, and an increase of about 149% over the first quarter operating income of 370 million yuan.

In terms of gross profit margin, Absen pointed out that in the whole year of 2021, due to the continuous impact of the overseas epidemic, the intensification of domestic market competition and the increase in raw material prices, the gross profit margin fell by about 2% year-on-year; in the fourth quarter, due to the benefits of production scale and changes in sales structure, the gross profit margin was about 28%, an increase of about 7% over the cumulative gross profit margin in the first three quarters.

In terms of signing orders, Absen has achieved synchronous development of domestic and foreign markets. According to reports, in 2021, the company achieved a total of about 3.00 billion yuan in signing, an increase of about 55% over 2020 and an increase of about 12% compared with 2019. The signing status of the sub-regions is as follows:

It is understood that the global display products are mainly produced in China, and even some overseas brand products are also OEM by Chinese manufacturers. Since April 2020, the outbreak of the overseas epidemic has led the LED display industry to export business demand for a period of time.

By 2021, although the overseas epidemic has eased and market demand has recovered, it has not reached the pre-epidemic level. At the same time, the shortage of raw materials has affected the supply of the entire LED industry, and since the second half of 2021, shipping has been blocked, freight has risen, the cost of LED display products has risen, and the export business has become worse.

In contrast, China has adopted active and effective prevention and control measures, and the domestic market and terminal demand have achieved a certain degree of recovery in a relatively short period of time, and have spawned the demand for remote office, distance education, telemedicine and so on. In addition, on October 19, 2021, the six departments jointly issued a notice to promote the implementation and landing of the "100 cities and 1000 screens" activity, the market space of the LED display industry was further opened, and related companies have increased their efforts to develop the domestic market, and Abison is no exception.

In mid-March 2020, Absen organized the "CD337" project. Among them, "CD" is the Chinese channel, "337" is the 337 prefecture-level cities in China, and Absen wants to establish a channel network covering all prefecture-level cities in the domestic market. The project is progressing well, and by the end of 2021, Absen has expanded into the domestic market with a total of about 1,600 channel providers.

In overseas markets, Absen has adjusted from a project-based business model to a parallel business model of projects and channels, increasing channel development and enhancing business competitiveness and output in various regions of the world. In 2021, Absen overseas display screens signed about 1.31 billion yuan, an increase of about 69% over 2020.

Deep ploughing LED display, application scenarios multi-point flowering

With the price advantage brought about by technological progress, as well as the natural advantages of unlimited stitching and highlighting, the business boundary of LED display continues to grow.

At present, LED display has undergone many technical iterations, and each technical iteration has triggered a big explosion of LED display application scenarios:

From the initial monochrome display, to the full-color display around 2000, let the LED become the mainstream display solution for outdoor scenes, and then to the small-pitch LED to expand the application scenario of LED display to indoors, such as monitoring center, command center, etc., and then to Mini/Micro LED technology, LED display from the commercial market to the civilian market, led screen market size is also expanding. LeDinside, the Optoelectronic Research Office of TrendForce Jibang Consulting, pointed out that the output value of the LED display market can reach 6.351 billion US dollars (+14.9% YoY) in 2021 and will grow to 12.017 billion US dollars in 2025.

Image source: Paixin's genuine gallery

Absen is deeply engaged in the LED display market, and its products are widely used in advertising display, commercial display, data visualization, stage display, conference screen, etc. At the same time, Absen is actively developing more innovative products to meet market demand, such as LED XR virtual shooting, 3D naked-eye large screen, Micro LED and so on.

Among them, in the LED XR virtual shooting market, Absen began to conduct in-depth research in 2019, and has developed a series of products suitable for virtual photography scenes, such as PL2.5 PRO main screen, MR floor screen, JP sky screen, etc. In terms of cases, the LED stereoscopic digital virtual studio created by Abison and Hangzhou Bocai Media adopts the same specifications as the Hollywood studio in terms of shape and area.

On a 3D naked-eye large screen. In 2018, Absen began to develop LED naked-eye 3D large-screen related products, which can provide customers with diversified naked-eye 3D display solutions from hardware, to video, to design.

On micro LED, Abberson developed the "eye-pleasing" series Mini/Micro LED COB flagship product in the first half of 2021, which is based on Absen's independent intellectual property rights HCCI technology and flip COB packaging technology, which realizes functions such as high brightness, high contrast, low power consumption, and smart display, and has a stronger sense of immersion, which perfectly solves the current SMD, COB products in the control room market, such as black screen modularity and poor white consistency.

For the future development trend of the LED industry, Absen mentioned in the "2021 Annual Stock Offering Prospectus to Specific Targets" released in October 2021 that due to the impact of the epidemic, the LED display industry has certain fluctuations in the short term, but from a medium- and long-term perspective, led display applications are broad and have good development prospects. Absen will also increase capital investment in LED display technology research and development, sales channel expansion, optimization and digital operations to promote the recovery and sustained growth of the scale of operation. (Text: LEDinside Lynn)

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