Is Mini LED not "scented" anymore? The 150 billion LED chip leader has been reduced by big funds, and these companies "lie guns"
On the evening of August 31, Sanan Optoelectronics (600703) disclosed an announcement showing that the National Integrated Circuit Industry Investment Fund (hereinafter referred to as the "big fund"), which holds 8.469% of its shares, intends to reduce its holdings by no more than 2%. It is worth noting that Mini-LED is receiving capital attention due to the promotion and application of major manufacturers such as Apple and Huawei, and the stock prices of related stocks have risen to varying degrees recently. Insiders said that the reduction of large funds is mainly in accordance with the rhythm of their own funding arrangements, which is a normal behavior.
The reporter noticed that since the beginning of this year, the "reduction of holdings" of large funds has been relatively active. In addition to Zhaoyi Innovation (603986), Changjiang Electronics Technology (600584), Taiji Industry (600667), etc., Rockchip (603893.SH) is still in the period of holding reduction. On August 30, Rockchip announced that as of August 27, 2021, large funds have reduced their holdings by more than half of 2,709,300 shares, and the reduction plan has not yet been implemented.
Sanan Optoelectronics is a leading global LED chip company. In the first half of this year, the company achieved revenue of 6.11 billion yuan, a year-on-year increase of 71.38%; realized a net profit of 884 million yuan, a year-on-year increase of 39.18%. The company said that the LED market demand is strong, and the prices of some low-end products continue to rise. It is expected that the prices of some products will continue to rise in the future. However, Sanan Optoelectronics has recently encountered capital concerns not because of the traditional LED business, but the Mini-LED chip business and compound semiconductors that are being promoted in the market.
With the introduction of Mini-LED products by mobile phone manufacturers including Huawei, Apple, and Samsung, the market for Mini-LED has been opened up. Sanan Optoelectronics has attracted much attention because of its related layout. Among them, Apple, which is regarded as a weather vane, has begun mass production of the new Mini-LED backlit MacBook Pro, according to news on August 12, and is expected to ship 600,000-800,000 units per month from August to November.
But laptop applications are only one of them. Mini-LEDs are also widely used in display fields such as TVs and car screens. Among them, TVs are quite promising. According to the latest report from research institute Omdia, global Mini-LED TV shipments are expected to reach 5 million units this year, which is 10 times that of last year (500,000 units). It is estimated that Mini-LED TVs will be shipped in 2025. The volume will reach 25 million units, accounting for 10% of the entire TV market.
At the same time, the current high cost is still a major problem for Mini-LEDs. Take high-density AM Mini-LED backlight as an example, its cost is 4 times that of ordinary LCD. Over time, this cost gap may shrink. According to Pei Xiaoming, vice president of Ruifeng Optoelectronics (300241), recently, it is estimated that the overall cost of Mini-LED backlights can drop by nearly 50% by 2025.
Part of the production capacity of the Hubei Sanan Mini/Micro display chip industrialization project of Sanan Optoelectronics has been put into operation. The company said that with the gradual release of production capacity and the gradual increase in the proportion of high-end products, the company's revenue scale and profitability will continue to improve . According to a person close to the company, the current supply of Mini-LED is in short supply, and the original production capacity is basically full.
As of press time, Sanan Optoelectronics' share price has fallen from a high of 44.92 yuan in early August to 34.22 yuan.
