On June 4, Aoyang Shunchang (002245.SZ) issued a non-public offering plan, which is planned to issue no more than 100 million shares at a price of not less than 5.12 yuan per share, and raise funds of no more than 512 million yuan for LED epitaxial wafers. And chip industrialization project (Phase I) (hereinafter referred to as LED project) and supplementary liquidity.
It is worth noting that some of the IPO investment projects of Aoyang Shunchang did not achieve the expected benefits. Now that Aoyang Shunchang's refinancing fundraising project is invested in the overcapacity LED industry, can the promised expected benefits be realized in the future?
Controversial LED industry
According to the announcement of Aoyang Shunchang, the above LED projects are mainly implemented by Huai'an Aoyang Shunchang Optoelectronic Technology Co., Ltd. (hereinafter referred to as Huai'an Aoyang). The construction period of the project is 30 months and the total investment is 807.7071 million yuan. Aoyang Shunchang is confident in the prospect of the project. It is estimated that the annual sales income will reach 720 million yuan after the project is put into production, the annual after-tax profit will be 168.6194 million yuan, the post-tax financial internal rate of return will be 24.51%, and the after-tax investment recovery period will be 5.46 years.
However, institutional investors in the industry do not believe this prediction very much.
A fund manager in Shanghai bluntly said that the LED industry has been in short supply in recent days, and has a close relationship with major international manufacturers such as Philips. "But it does not mean that the inventory of the LED industry has been digested, and it is still in the stage of overcapacity."
In fact, due to the influence of local government subsidies, the supply and demand of LED upstream chip market has been partially distorted in the past few years. The key MOCVD equipment for LED epitaxial wafers is used as an indicator, and the rapid increase in the number of devices has caused a relative overcapacity.
A securities researcher said that if the penetration rate of lighting reaches 30% and needs about 1000 MOCVD, the supply and demand in the global market will be basically balanced. If the penetration rate of the global lighting market reaches 100%, there will still be 2,500 gaps; unfortunately, currently The LED penetration rate is only about 10%, and the industry's production capacity is obviously overcapacity. "So, the outlook is bright, but the reality is cruel." The fund manager said, "Maybe it will not be long before the LED will become another photovoltaic."
In addition to the controversial LED industry, another project of Aoyang Shunchang's refinancing, supplementing the parent company's liquidity, was also questioned by the market.
"Since I want to invest in the LED industry, why should I take the opportunity to finance the parent company?" The above-mentioned industry researcher feels that Aoyang Shunchang’s move to "edge the ball" is suspected of "circling money". "If the non-public offering plan is very Well, why does the controlling shareholder Aoyang Group not participate in the subscription, can it not increase market confidence?"
"Disguised" seeking government subsidies
What makes the above fund manager wonder is what is the motivation of Aoyang Shunchang to actively participate in the LED industry. “In fact, this industry is relying more on government subsidies to survive. Does Aoyang Shunchang seek this?â€
According to the 2012 annual report of Aoyang Shunchang, its net profit was 101.7152 million yuan, a year-on-year increase of 3.72%. However, after deducting non-recurring gains and losses, Aoyang Shunchang only achieved a net profit of 87.609 million yuan last year, down 11.59% year-on-year.
Aoyang Shunchang was included in the current profit and loss in 2012. The subsidy from the government amounted to 22.10 million yuan, and in 2011 this subsidy was only 770,000 yuan. The reporter noted that the government subsidy of Aoyang Shunchang last year was mainly because its LED project received a one-time government award of 20.49 million yuan last year.
In addition, Huaian Anyang has also received strong support from the local government in purchasing MOCVD and related equipment.
On May 10, 2012, Huai'an Aoyang received a letter from Huai'an Qinghe District People's Government on the equipment subsidy for Huai'an Aoyang Shunchang Optoelectronic Technology Co., Ltd., according to the letter, MOCVD and related purchases of Huai'an Optoelectronics in 2012. Auxiliary equipment, Qinghe District Government will give each 10 million yuan equipment purchase subsidy.
On the same day, Huai'an Aoyang received 3 million yuan of MOCVD equipment subsidy from the Qinghe District People's Government of Huai'an City. According to the above letter, Huai'an Aoyang received another 3 million yuan of subsidy funds; on November 15, Huai'an Aoyang once again received a subsidy of 9 million yuan for MOCVD equipment.
On March 13, 2013, Huai'an Aoyang received another 6 million yuan of MOCVD equipment subsidy from the Qinghe District People's Government of Huai'an City.
An industry researcher told reporters that most of the profits of LED-related listed companies stem from government subsidies. "With the government's strong subsidies, LED upstream has huge idle capacity and high inventory."
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
It is worth noting that some of the IPO investment projects of Aoyang Shunchang did not achieve the expected benefits. Now that Aoyang Shunchang's refinancing fundraising project is invested in the overcapacity LED industry, can the promised expected benefits be realized in the future?
Controversial LED industry
According to the announcement of Aoyang Shunchang, the above LED projects are mainly implemented by Huai'an Aoyang Shunchang Optoelectronic Technology Co., Ltd. (hereinafter referred to as Huai'an Aoyang). The construction period of the project is 30 months and the total investment is 807.7071 million yuan. Aoyang Shunchang is confident in the prospect of the project. It is estimated that the annual sales income will reach 720 million yuan after the project is put into production, the annual after-tax profit will be 168.6194 million yuan, the post-tax financial internal rate of return will be 24.51%, and the after-tax investment recovery period will be 5.46 years.
However, institutional investors in the industry do not believe this prediction very much.
A fund manager in Shanghai bluntly said that the LED industry has been in short supply in recent days, and has a close relationship with major international manufacturers such as Philips. "But it does not mean that the inventory of the LED industry has been digested, and it is still in the stage of overcapacity."
In fact, due to the influence of local government subsidies, the supply and demand of LED upstream chip market has been partially distorted in the past few years. The key MOCVD equipment for LED epitaxial wafers is used as an indicator, and the rapid increase in the number of devices has caused a relative overcapacity.
A securities researcher said that if the penetration rate of lighting reaches 30% and needs about 1000 MOCVD, the supply and demand in the global market will be basically balanced. If the penetration rate of the global lighting market reaches 100%, there will still be 2,500 gaps; unfortunately, currently The LED penetration rate is only about 10%, and the industry's production capacity is obviously overcapacity. "So, the outlook is bright, but the reality is cruel." The fund manager said, "Maybe it will not be long before the LED will become another photovoltaic."
In addition to the controversial LED industry, another project of Aoyang Shunchang's refinancing, supplementing the parent company's liquidity, was also questioned by the market.
"Since I want to invest in the LED industry, why should I take the opportunity to finance the parent company?" The above-mentioned industry researcher feels that Aoyang Shunchang’s move to "edge the ball" is suspected of "circling money". "If the non-public offering plan is very Well, why does the controlling shareholder Aoyang Group not participate in the subscription, can it not increase market confidence?"
"Disguised" seeking government subsidies
What makes the above fund manager wonder is what is the motivation of Aoyang Shunchang to actively participate in the LED industry. “In fact, this industry is relying more on government subsidies to survive. Does Aoyang Shunchang seek this?â€
According to the 2012 annual report of Aoyang Shunchang, its net profit was 101.7152 million yuan, a year-on-year increase of 3.72%. However, after deducting non-recurring gains and losses, Aoyang Shunchang only achieved a net profit of 87.609 million yuan last year, down 11.59% year-on-year.
Aoyang Shunchang was included in the current profit and loss in 2012. The subsidy from the government amounted to 22.10 million yuan, and in 2011 this subsidy was only 770,000 yuan. The reporter noted that the government subsidy of Aoyang Shunchang last year was mainly because its LED project received a one-time government award of 20.49 million yuan last year.
In addition, Huaian Anyang has also received strong support from the local government in purchasing MOCVD and related equipment.
On May 10, 2012, Huai'an Aoyang received a letter from Huai'an Qinghe District People's Government on the equipment subsidy for Huai'an Aoyang Shunchang Optoelectronic Technology Co., Ltd., according to the letter, MOCVD and related purchases of Huai'an Optoelectronics in 2012. Auxiliary equipment, Qinghe District Government will give each 10 million yuan equipment purchase subsidy.
On the same day, Huai'an Aoyang received 3 million yuan of MOCVD equipment subsidy from the Qinghe District People's Government of Huai'an City. According to the above letter, Huai'an Aoyang received another 3 million yuan of subsidy funds; on November 15, Huai'an Aoyang once again received a subsidy of 9 million yuan for MOCVD equipment.
On March 13, 2013, Huai'an Aoyang received another 6 million yuan of MOCVD equipment subsidy from the Qinghe District People's Government of Huai'an City.
An industry researcher told reporters that most of the profits of LED-related listed companies stem from government subsidies. "With the government's strong subsidies, LED upstream has huge idle capacity and high inventory."
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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