In addition to expanding the LED package, how can it go?

[Text / high-tech LED Yue Mengdi] "To complete the bet (agreement) with Hongli this year, the problem should not be too big." Zhang Luhua, marketing director of Smale, who is sitting opposite the author, said.

From the first half of this year, as one of the most profitable subsidiaries of Hongli Optoelectronics (300219.SZ), Smect has contributed a net profit of 10.9 million to the parent company. The product layout is also from the EMC of “Independence Wulin” to the richer product lines such as COB, SMC and CSP.

Since the beginning of this year, the LED market has not been too good. As far as packaging is concerned, the big manufacturers are expanding production. Mulinsen (002745.SZ) and Hongli Optoelectronics have all opened up their bases in Jiangxi. Guoxing Optoelectronics (002449.SZ) also has corresponding Expansion plan. However, the amount is rising and the price is going down the road. Zhang Luhua is also quite helpless. "The profit has also dropped a lot."

In fact, it is not only the Smect family that has been troubled by this. The increase in the price has been in the LED for a long time. According to the research data of the High-tech Research Institute LED Research Institute (GGII), the price of street lamps has dropped by about 25% this year, and it is expected that this figure will reach 30% by the end of the year. The price of display devices is also almost swayed in the first three quarters of this year. In addition to expanding production capacity and increasing scale, LED packaging companies seem to have no better way to go.

"We are also expanding production." Zhang Luhua told "High-tech LED", "The current production capacity has reached 1400kk / month, compared with the beginning of the year, the production capacity has almost doubled." Expansion means large-scale production, large and stable, Only with the supplier will have sufficient bargaining power, but also can reduce the manufacturing cost and management cost.

At the same time, Smect's production base in Jiangxi is about to be put into production. In Zhang Luhua's view, the factory rent and labor costs in the mainland are relatively low, and there are abundant resources and markets. Most of the production is introduced into the mainland, which is a lot. Corporate tactical adjustments.

In addition, Smect is actively looking for new profit growth points, this time, they are looking at the module. “Modules are very simple to use for customers. Unlike lamp beads, improper use can affect the effect and longevity.” Zhang Luhua said that they cooperated with IC companies to arrange the lamp beads in the most reasonable way to provide customers with the most optimized products. Can reduce costs for customers, thereby enhancing the company's own competitiveness. "There is also the possibility of making reserves for exporting some developing countries." Zhang Luhua said that in some developing countries and third world countries, the manufacturing level may be lagging behind, and it is better to provide the module without the need to provide the module.

Open source and throttling, Smack is going on, and it doesn't seem that the Smect family needs to do this. LEDs are neither pure consumer goods nor complete industrial products, and the decline in prices and profits is also normal. Zhang Luhua believes that the profit margin of LED will eventually return to the rational and normal manufacturing level, not too high, but relatively stable, can survive the two years, is a victory.

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