In recent weeks, several LED companies have announced their first-half performance previews. According to the high-tech LED tracking data, most firms have seen significant improvements in their performance, while only a few have reported declines in the first half of the year.
Recently, five LED-listed companies—Overclocking Three, Dehao Runda, Ruifeng Optoelectronics, Tailong Lighting, and Snowlight—have released their first-half performance forecasts. Interestingly, among these, Shelley, Overclocking III, and Dehao Runda have each experienced varying degrees of decline. But what could be the cause?
**Tailong Lighting predicts a 11%-28% increase in its first-half net profit.**
Tailong Lighting shared its performance forecast. For the period from January to June 2017, the company anticipates net profits attributable to listed company shareholders to range between 12.30 million and 14.45 million yuan, marking a year-on-year increase of 11.00% to 28.00%.
The company attributes this growth to several factors:
1. During the reporting period, the scale of production and sales of the company's core products increased year-over-year. Additionally, through enhanced cost control measures, the company managed to reduce various expenditures, contributing to a rise in net profits compared to the same period last year.
2. Non-recurring gains and losses during the reporting period are expected to impact net profit by between 100,000 and 200,000 yuan.
**Ruifeng Optoelectronics expects an 80%-100% increase in its first-half net profit.**
Ruifeng Optoelectronics also released its performance forecast. The company projects that net profits attributable to listed company shareholders from January to June 2017 will reach between 42.664 million and 47.384 million yuan, representing a year-on-year increase of 80.00% to 100.00%.
The reasons behind this projection include:
1. In the first half of 2017, the LED industry landscape and development trends have been favorable, with rising industry concentration. The company’s technological and service advantages have become more prominent, driving all major businesses to exceed targets. Notably, the automotive lighting, filament, and UV sectors have emerged as new growth drivers. Moreover, non-recurring gains and losses have contributed positively to the company’s net profit growth.
2. During the reporting period, the company's non-recurring gains and losses are estimated to be around 22 million yuan, primarily from research and development project subsidies and industrial project subsidies.
**Overclocking 3 expects its semi-annual net profit to fluctuate between -10% and 0%.**
Overclocking 3 also provided its performance forecast. For the period from January to June 2017, the company expects net profits attributable to listed company shareholders to range between 20,325,900 and 22,614,300 yuan, representing a year-on-year change of -10.00% to 0.00%.
The company explained that its main business revenue and product sales gross profit margin remained stable compared to the same period in 2016. However, due to the relocation of production lines from Meiwanjia and Zhenrong branches to the Huizhou production base in the second quarter of 2017, as well as expenses related to the initial public offering and other activities, the company saw a temporary rise in short-term management costs, leading to a slight decrease in net profit compared to the previous year. By June 30, 2017, the relocation of the two branches’ production lines was complete, forming new production capacity, which is expected to have no significant long-term impact on the company’s performance.
**Snowlight expects its semi-annual net profit to vary between -30% and 10% year-on-year.**
Snowlight released its performance forecast. The company projects net profits attributable to listed company shareholders from January to June 2017 to range between 13.13 million and 20.591 million yuan, representing a year-on-year change of -30.00% to 10.00%.
This prediction is largely due to the company's increased financing scale from financial institutions and higher financial expenses incurred during the reporting period.
**Dehao Runda predicts a loss of 60 million to 70 million yuan in the first half of the year.**
Dehao Runda issued a performance forecast. The company expects net profits attributable to listed company shareholders from January to June 2017 to range between -70 million and -60 million yuan, representing a year-on-year change of -536.51% to -474.15%.
The reasons for this projection are:
1. During the reporting period, the company’s LED and small household appliance businesses maintained steady development, with operating income increasing by approximately 13% year-on-year and gross profit margin increasing by about 0.3% year-on-year.
2. During the reporting period, financial expenses increased by approximately 130 million yuan year-on-year, mainly due to an exchange loss of approximately 75 million yuan caused by the appreciation of the RMB. Last year during the same period, there were foreign exchange gains of 49,127,400 yuan due to RMB depreciation.
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