Dry Photoelectric: Rapidly developing red and yellow LED faucet

The domestic red-yellow LED faucet was founded in 2006. The company management team has rich experience in the LED field and has a deep understanding of the LED industry. With its product competitiveness and capital strength, the company has achieved rapid development in the past three years. With the explosive growth of the market demand in the industry, the revenue of high-brightness quaternary LED chip business increased from 49.246 million yuan in 2007 to 163 million yuan in 2009.

One of the few domestic suppliers of triple-junction gallium arsenide solar cell epitaxial wafers is one of the largest suppliers of mass-produced triple-junction gallium arsenide solar cell epitaxial wafers in China, with scale, product quality and cost. Great advantage. At present, only a small number of enterprises in China have the ability to produce epitaxial wafers of triple junction GaAs solar cells.

Technical level and profitability The leading domestic core technicians of dry photo optoelectronics have a deep accumulation in the field of MOCVD and gallium arsenide solar cells. The company's LED chips have uniformity, consistency and high yield, and are widely recognized by customers. In 2009, the photoelectric conversion efficiency of the high-efficiency three-junction gallium arsenide solar cell epitaxial wafer produced by the company reached 28.5%, which is at the domestic leading level. Due to the superior cost performance and cost control capability of the company, the company's comprehensive gross profit margin in 2009 was 58.94%, much higher than that of domestic counterparts.

With a large investment and a good grasp, the company will maintain its high-speed growth momentum. After the listing of the company, it will use the super-raised funds to increase investment and expand the high-brightness red-yellow LED chip production capacity by 36 billion tablets. The reason is currently in the company's products. In a serious shortage of supply (only about 50% of the order needs). As a domestic leading company of red and yellow LED, using the funds raised after the listing to increase investment, occupying the market opportunity, will provide guarantee for the company's rapid development in the future. The company uses existing production equipment to cut into the field of triple-junction gallium arsenide solar cells, which has been accumulated in the space solar cell epitaxial wafer market. In the future, the market for concentrating solar energy will mature, and this business will also become an important source of profit for the company.

Risk factors The risk of capacity expansion, LED application market started later than expected risk.

Earnings Forecast We forecast that the operating revenue of Ganzhao Optoelectronics will reach 302 million yuan, 667 million yuan and 1.127 billion yuan in 2010-2012. The net profit attributable to shareholders of the parent company is 140 million yuan, 305 million yuan and 488 million yuan. After the issuance of the share capital calculation, the corresponding EPS is 1.188, 2.588 and 4.133 yuan. Based on the latest closing price, the dynamic P/E ratio is 65.9, 30.3, and 18.9 times, giving the company an “overweight” rating.