Songsheng shares yesterday (9) released a record of investor relations activities, sharing on the development trend of plant lighting, industry barriers and other issues.
The future market demand for plant lighting is vast
Songsheng shares pointed out that plant lighting will move towards long-term industrial fields. There are three main reasons:
First, LED plant lighting empowers terminal planting with more economic value. Because LED plant lighting has many outstanding advantages such as adjustable spectrum, precise control, soilless planting, and no seasonal and geographical restrictions, the output value of plant factories and the nutritional value of crops have been greatly improved. The current scientific level Continue to study the nutritional value of different plants and the realization of their growth path, which will be the biggest selling point and bright spot of the downstream and terminal. Therefore, from the terminal point of view, LED plant lighting has broken the bottleneck restricting the development of traditional plant lighting in the past, making the industry have an economic foundation that can be widely popularized, which is an important cornerstone for the long-term development of the industry.
Second, LED plant lighting can effectively promote the solution of people's livelihood issues such as the food crisis, food safety, and the supply of drugs required for the epidemic. Industrial hemp is only a catalyst for the rise of the industry. The greater significance of LED plant lighting is that it can be extended to more common vegetables, fruits, flowers, Chinese medicinal materials and other crops. At present, Songsheng shares in the plant factory of Zhongke San'an It is possible to see the application of multiple vegetable and fruit planting, which is the correct path to support the development of the industry to a broader market.
Third, plant factories and plant lighting represent the important development direction of advanced modern agricultural technology. Soilless planting solves the problems of land resource contradictions and natural pests. Hydroponics technology makes vertical planting recycle water resources, which is more green and environmentally friendly. , Smarter agricultural methods are in line with national policy guidance, so the industry has a good environment for long-term development.
Songsheng shares also introduced the current proportion of LED replacement high-pressure sodium lamps in plant lighting.
It is reported that due to the relatively short development time of LED plant lighting, the penetration rate is low. Among them, the replacement rate of LED grown in greenhouses is less than 30%, and the stock market is accelerating the replacement. In addition, some countries such as Europe and the United States have banned the production of high-pressure sodium lamps, so the future incremental market will be dominated by LED lamps.
In the downstream market, Songsheng shares believe that the current rise of plant lighting is relatively short, and the legalization of overseas industrial hemp has a relatively obvious catalytic effect on this market in the short term, but with the continuous development of LED plant lighting technology With maturity and the continuous release of spectral data of different plants, the application range of LED plant lighting will become wider and wider. The planting of more crops including Chinese medicinal materials, flowers, vegetables, fruits, etc. is also accelerating its popularization, and even into millions of families. The market demand is quite broad.
It is reported that Zhongke San'an has begun to purchase Songsheng shares in bulk LED drive power products from 2020, and signed a strategic cooperation agreement with the company this year to form a long-term and in-depth strategic partnership.
At present, the two parties have launched a comprehensive cooperation in the field of LED plant lighting, including but not limited to product solutions, technology realization, market cooperation, brand promotion, etc., to give full play to the advantages of both parties in the upstream and downstream of the LED plant lighting and supporting drive power industry.
Image source: Photo Gallery
The future will continue to cultivate high-power LED drive power
At present, Songsheng's capacity utilization rate is 80%. However, Songsheng shares believe that the company's production capacity is relatively flexible, which can meet the foreseeable future production demand for orders. First, the company must reserve a certain amount of capacity space in actual production operations to meet the flexibility of the production line order production plan; second, the company will planly deploy new production lines based on the visible range of on-hand orders.
At present, the company's capacity utilization rate is based on the production status of the Changbai shift. The production capacity can be further activated by adjusting the shift schedule. In addition, the time for the new production line is relatively short. The purchase of production line equipment and personnel training can be completed and reached production within two months. The company will deploy new production lines in a rhythmic manner according to the order plan to meet the production capacity growth in the second half of the year. need.
Songsheng shares chip suppliers are mainly international manufacturers. In terms of domestic substitution of chip production capacity, Songsheng shares pointed out that there is a gap between the stability of domestic chip supply and the actual production capacity supply. In addition, it takes time to adopt new suppliers for supplier access and product run-in.
In response to the tight supply of raw materials, Songsheng shares pointed out that the company has made strategic stocking in advance in the fourth quarter of 2020, especially in semiconductor materials, mainly using imported brands. It usually pays great attention to the cooperation relationship with the original factory and agents. Relevant suppliers will also learn about the company's planning and development in advance.
In addition, Songsheng shares also pointed out that since this year, in the emerging market of plant lighting, due to the company’s strategic development and market advantages in plant lighting power supply business, most semiconductor suppliers hope to explore new areas and form long-term cooperative relationships with the company. The support for the company is relatively strong, so it maintains a relatively large supply of the company under the same conditions.
At the same time, Songsheng shares are constantly strengthening supply chain management. Therefore, Songsheng shares believe that the tight supply of raw materials will not have a significant impact on the company.
Songsheng shares pointed out that the current overall tight supply and demand of raw materials is the overall market environment, a challenge as well as an opportunity, and it may further increase industry concentration. To a certain extent, it is beneficial to companies with scale advantages, capital strength, and high industry status. Further development and growth.
Specifically in the field of plant lighting power supply, Songsheng shares pointed out that compared to street lamps, plant lighting terminals are mainly commercial operations, so end customers have requirements for LED plant lighting drive power in conversion efficiency, temperature control, precise dimming, and warranty life. Relatively stricter.
In terms of conversion efficiency, the higher the efficiency, the lower the power loss and the loss efficiency in the form of heat dissipation. For terminal planting, it can not only save electricity costs, but also control the temperature in the plant factory. High temperature affects the optimal growth of plants.
In terms of precise dimming, Songsheng's driving power supply provides functions such as adjustable spectrum and intelligent programming to realize the plant lighting system to finally output the light required by the planted plants according to the spectral requirements of different plants.
In terms of warranty life, plant lighting needs a longer warranty life of the power supply, so there are higher requirements for the reliability and quality of the driving power supply.
Songsheng shares also pointed out that in addition to product technical barriers, whether it is plant lighting or outdoor lighting, the main industry threshold for high-power LED drive power is also the threshold of customer trust in the brand and the management threshold of the production supply chain.
According to the company, the high-power LED drive power industry requires long-term dedicated investment and accumulation due to the special environment of the product application. The trial and error costs of terminal applications such as outdoor street lamps and plant lighting are relatively high, so long years are required. In order to gain the trust of customers, such as deep cultivation, multiple successful cases, and reputation for product quality, customers will generally have good stickiness to brands that have been cooperating for a long time, and will not easily try and make mistakes.
In terms of supply chain management, Songsheng believes that cutting into a new business field is more difficult for the company’s supply chain management. Songsheng has been cultivating in this field for ten years and has now formed a mature Supply chain management model and experience in business links.
In view of the future layout, Songsheng shares pointed out that the company will continue to deepen the blue ocean market of high-power LED drive power, and use the advantages of the capital market to help the company develop, open up more high-quality customers, and fully grasp the new opportunities in the development of emerging application fields. Continue to expand and strengthen the company's business. (Collected by LEDinside Lynn)
