Recently, the China Lighting Association issued the "Report on the Export Situation of China's Lighting Industry in the First Three Quarters of 2020". The cumulative export value of LED lighting products from January to September this year was 23.46 billion US dollars, a year-on-year increase of 5.45%, and the rebound is very obvious. After public health emergencies swept the world, companies with core competitiveness such as Lehman Optoelectronics (300162) and Mulinsen (002745) will have more market opportunities.
According to the "Report on China's Lighting Industry Exports in the First Three Quarters of 2020" issued by the China Lighting Association, in September 2020, China's lighting industry exports were 5.113 billion U.S. dollars, a year-on-year increase of 44.18%, recording the largest year-on-year single month. The growth rate has achieved double-digit growth for four consecutive months since June. Among them, the export value of LED lighting products was US$3.4 billion, a year-on-year increase of 40.5%. Since May, it has grown for five consecutive months, and has achieved double-digit growth for four consecutive months since June. The cumulative export value of LED lighting products from January to September was 23.46 billion U.S. dollars, a year-on-year increase of 5.45%, and the rebound trend is very obvious.
The industry analysts believe that, by quarters, the overall lighting exports showed a trend of "distressed in the first quarter, picking up in the second quarter, and striving for the third quarter". The momentum in the fourth quarter will be slightly lower than that in the third quarter, but with the second and third quarters. It is a high probability event to achieve positive growth in exports throughout the year. The overall demand for LED lighting exports is recovering, and the industry's recovery is expected to promote the growth of listed companies' export performance.
For example, Mulinsen, whose overseas business accounted for more than 50%, according to its third-quarter performance report, the company achieved operating income of 11.731 billion RMB in the first three quarters, a year-on-year decrease of 18.03%; realized attributable net profit of 689 million RMB, a slight decrease of 0.01% year-on-year. Among them, Q3 realized operating income of 4.604 billion RMB; realized attributable net profit of 459 million RMB, an increase of 55.42% over the same period last year. Regarding overseas business, Mulinsen said that it adheres to the business logic of light assets, heavy branding, and strong operation in overseas business. Overseas subsidiaries will focus on brand operation, channel management, product research and development, and supply chain management, so that brand value will sink in channels and have continuous Monetization ability.
Another example is Lehman Optoelectronics (300162), whose export business has been above 50% for a long time. The products sold for export are mainly lighting products. This year's revenue data also continues to improve, benefiting from the industry's recovery. The fourth quarter is expected to improve. According to the semi-annual report of Lehman Optoelectronics this year, during the reporting period, the company invested in the establishment of Tuoxiang (Vietnam) Co., Ltd., and set up an LED lighting production base in Vietnam, using local favorable tariff policies to open up overseas customers, reduce production costs, and prevent tariff risks, which help to enhance the company's product competitiveness and profitability.
At present, the domestic and international double cycle dominated by the domestic cycle will become the underlying logic of China's economic structure during the 14th Five-Year Plan period. As a typical light industry branch, the local lighting industry has benefited from a global division of labor for a long time, and the industry has been fully cultivated. In the future, it is necessary to open up the double cycle and continue to enhance the competitiveness of enterprises. At the same time, in the era of public health emergencies, the industry is also facing certain difficulties. How to seek new breakthroughs is of vital importance. Against this background, many LED companies this year will focus on ultra-high-definition display applications, smart commercial displays, landscape lighting and other fields, actively seeking new growth points. Lehman Optoelectronics has developed MicroLED ultra-high-definition display products based on COB packaging, which can be widely used in high-end conferences, big data centers, intelligent command centers, monitoring centers, exhibitions, education and teaching, radio and television studios and other scenarios. According to the latest three-quarter report of Ledman Optoelectronics, Ledman Optoelectronics focused on increasing the coverage of various segments of the domestic market for this business. Revenue in the first three quarters of 2020 increased by 49.3% over the same period last year, of which the domestic market increased 70% over the same period last year. The domestic display market share has effectively increased, and economies of scale have gradually emerged. Last Friday, the secondary market of Lehman Optoelectronics was active, with a net inflow of main funds of 29.168 million RMB, a rise or fall of 4.26%.
Nowadays, the domestic LED lighting industry stands at a critical time node. As the industry enters a mature period, the improvement of related systems, the acceleration of production automation, and the trend of industry intensive integration have become a new trend. Great Wall Securities believes that with the frequent integration and exit of major international lighting companies in recent years, high-quality local LED lighting companies are expected to accumulate, give full play to the advantages of supply chain management and product accumulation, and expand brand influence and market share in the global lighting market.