Market demand picked up, and Jucan Optoelectronics' profit surged in the first quarter

The operating income of Jucan Optoelectronics in the first quarter exceeded 600 million yuan, and the net profit increased by more than 7 times year-on-year. The company has taken multiple measures in parallel, completed share repurchase and cash dividends in the first quarter, and continued to promote fundraising and investment projects, while consolidating R&D capabilities, and product production and sales are booming. There are also many companies in the field of optoelectronics that are doing well.

Source: Photo.com

The recovery of market demand led to an increase in performance

On April 24, Jucan Optoelectronics Technology Co., Ltd. (stock abbreviation: Jucan Optoelectronics; stock code: 300708. SZ) released the first quarter report of 2024, the company's operating income in the first quarter was 600.4832 million yuan, an increase of 10.55% over the same period of last year, and the net profit attributable to the parent company was 48.1076 million yuan, an increase of 733.52% over the same period of last year.

Jucan Optoelectronics said that the recovery of market terminal demand, the company's production capacity release superimposed product positioning, accurate grasp of market demand, high-end products represented by backlight, high light efficiency, Mini LED, silver mirror flip products as the representative of the production and sales boom, the company's capacity utilization rate, production and sales rate remained consistently high. At the same time, the company adheres to the refined management model covering the whole process of operation, continuously improves technological innovation, upgrades the structure of high-end products, and effectively controls costs and expenses, so as to promote the net profit and net profit after deducting non-profits to achieve double profitability and achieve substantial year-on-year growth.

Multiple measures go hand in hand to stabilize the company's operation

According to the data, Jucan Optoelectronics is mainly engaged in the research, production and sales of compound optoelectronic semiconductor materials, and its main products are GaN-based high-brightness LED epitaxial wafers and chips. The company's products are located in the upstream of the LED industry chain, and the application fields of the products produced are lighting, backlight, and display.

At the same time as the performance of the first quarter rose sharply, Jucan Optoelectronics has completed a number of measures for shareholders and the secondary market to boost market confidence.

During the period from February 5th to April 8th, the company has repurchased 32,831,700 shares of the company through centralized bidding, accounting for 4.89% of the company's total share capital, with a total transaction amount of about 300 million yuan, and the share repurchase plan has been implemented.

In addition, the equity distribution of Jucan Optoelectronics in 2023 has been implemented in the first quarter. The company distributed 1.60 yuan in cash to all shareholders for every 10 shares, and the actual cash dividend was 106 million yuan.

In addition, according to the quarterly report, Jucan Optoelectronics changed part of the use of the funds raised from the "Mini/Micro LED chip R&D and manufacturing expansion project" for the implementation of the new project "annual output of 2.4 million pieces of red and yellow epitaxial wafers and chips".

Jucan Optoelectronics said that through the construction of new projects, the company will form an annual production capacity of 2.4 million pieces of red and yellow epitaxial wafers and chips, and establish an all-color system of RGB display products with blue-green LED chips, which will improve the company's overall operational efficiency while generating economic benefits, meet the changing trend of the overall industry environment and the needs of the company's sustainable development, and further implement the company's layout on the Mini LED segmentation track and optimize the product structure. In the future, with the continuous advancement of multiple projects, high-end and high-priced products such as Mini LED, automotive lighting, and display products will be launched one after another, and the company's product categories will be further enriched.

Consolidate R&D strength, the company's production and sales are booming

According to the annual report of Jucan Optoelectronics, the company will achieve operating income of 2.481 billion yuan in 2023, an increase of 22.30% over the same period of last year, and net profit attributable to the parent company of 121 million yuan, an increase of 291.41% over the same period of last year.

The company's LED chip output in 2023 will be 21,738,500 pieces, a year-on-year increase of 8.37% over 2022, and the annual sales volume will reach 21,946,800 pieces, a year-on-year increase of 13.09%. The sales revenue of the company's LED chips and epitaxial wafers was 1.262 billion yuan, a year-on-year increase of 9.96%, and the gross profit margin of products was 18.21%, an increase of 3.92 percentage points over the previous year.

Jucan Optoelectronics said that the company has strengthened independent technological innovation, R&D investment has remained stable, and the performance of high-end products has been improved and the structure has been upgraded.

In terms of epitaxy, the company has developed the epitaxial growth technology of SiO2/Al2O3 composite substrate, breaking through the bottleneck of performance and yield of new substrate substrates, and successfully achieving large-scale and stable mass production. By closely connecting the market and customer needs, we have added a high-gamut low-cost light source development scheme, and successfully developed dual-wavelength and triple-wavelength single-epitaxial layer structures. At the same time, the rapid commissioning of Unimax MOCVD equipment has tapped the space to reduce manufacturing costs.

In terms of chips, the company continues to improve performance through chip design optimization and continuous development in combination with process parameters. In the field of horticultural lighting, the company has developed an ultra-high luminous efficiency silver mirror flip chip, and has gradually increased the amount; in the field of Mini backlight, through the introduction of atomic layer deposition equipment, optimization of deep etching process, independent research and development of innovative insulation layer optimization treatment process, has successfully solved the technical problems of high temperature and high humidity aging failure of Mini high-voltage backlight products.

The performance of many companies in the industry is improving

According to Lehman Optoelectronics (300162. SZ) quarterly report, the company achieved operating income of 303.9287 million yuan in the first quarter of this year, an increase of 13.13% over the same period of last year, and net profit attributable to the parent company of 2.0133 million yuan, an increase of 211.91% over the same period of last year, turning losses into profits.

It is reported that based on years of glass-based LED technology research and development accumulation, Lehman Optoelectronics has broken through a series of technology, technology, material matching and other problems, the world's first PM driver glass-based Micro LED display technology, and the world's first 220-inch PM glass-based Micro LED 4K home giant curtain wall, realizing the advanced layout of the new core material product system, and promoting the commercialization process of the next generation of P1.0 micro-pitch LED ultra-high-definition display and all-in-one products.

Rijiu Optoelectronics(003015. SZ) disclosed that the company achieved operating income of 119.0115 million yuan in the first quarter of this year, an increase of 27.30% over the same period of last year, and a net profit attributable to the parent company of 6.2828 million yuan, an increase of 201.23% over the same period of last year, achieving a turnaround.

Rijiu Optoelectronics is mainly engaged in the research and development of materials for touch display applications, and customizes the research and development and processing services of related functional films. In 2023, the company's optical film and OCA optical adhesive products will achieve sales revenue of 14.4218 million yuan and 130.3206 million yuan respectively, a year-on-year increase of 1309.76% and 41.52% respectively.

Exciton Technology(300566. SZ) achieved operating income of 538.1368 million yuan in the first quarter of this year, an increase of 29.71% over the same period of last year, and net profit attributable to the parent company of 49.1825 million yuan, an increase of 74.47% over the same period of last year.

In 2023, the company achieved operating income of 2.303 billion yuan, a year-on-year increase of 16.24%, net profit attributable to the parent company of 144 million yuan, a year-on-year increase of 154.25%, and net profit after deducting non-profits of 79 million yuan, a year-on-year increase of 871.86%.

Exciton Technology said that the industry development trend factors of large-screen and high-end display technology. With the trend of lightweight, thin, large-screen, and high-gamut in the display industry, the demand for high-end optical films for display continues to increase with the increasing penetration rate of new display technologies such as quantum dots and Mini-LED.