Sun qinghuan, chairman and general manager of mu linsen (002745), said in an interview with China securities news recently that with the further improvement of domestic industry concentration and the opening of overseas LED alternative market, the global LED lighting penetration rate still has room to double.Mulinsen has been accelerating the construction of national production base, involving LED components, LED light source modules and terminal lighting products.In the future, we hope to build the world's largest lighting group by virtue of the layout of the middle and lower reaches and the global sales channels.
From 2011 to 2018 is the golden seven years for the development of LED industry, with the compound growth rate of mu linsen's operating revenue reaching 45.69%.The company focuses on LED packaging and application series product development, production and sales.At the same time, the company has extended the industrial chain, increased its market share, and acquired the downstream global lighting giant LEDVANCE, becoming the largest listed company with the largest revenue in the domestic green lighting field.
Benefit from LED capacity transfer
Data shows that after being listed in February 2015, mulinsen maintained an annual growth rate of over 40%.From 2015 to 2017, operating revenue reached 3.882 billion yuan, 5.521 billion yuan and 8.169 billion yuan respectively.According to the financial results express, the revenue of mullinsen in 2018 reached 17.749 billion yuan, entering the club of 10 billion yuan.It is worth noting that the total amount of direct and indirect financing since the company went public is less than 4 billion yuan.
At the end of November 2018, the company announced that it plans to issue convertible bonds with a total amount of no more than 2.66 billion yuan, which will be used for the production project of high-performance LED packaging products in xiaolan, the production project of LED power supply in xiaolan, the automatic production project of LED lighting application products in yiwu and the repayment of interest-bearing debts.
Sun qinghuan tells a reporter, after mu linsen appears on the market, investment builds a factory in jiangxi xinyu, ji 'an and zhejiang yiwu, shaoxing much ground successively.Zhongshan xiaolan as the company's headquarters and research and development headquarters, ji 'an to create packaging base, xinyu provides one-stop service supporting products, zhejiang base production filament lamp products.After all these projects are put into production, mulinsen will become the largest LED manufacturer in the world.
The manufacturing advantage of the whole industrial chain enables it to undertake more orders from domestic and foreign lighting giants.According to an LED industry analyst, due to the encouragement of relevant policies to the green lighting industry and the decline of industrial profits, the global LED industry has shown a trend of capacity transfer to mainland China in recent years, and international LED giants such as GE, osram and samsung have withdrawn from the lighting market one after another.Philips and others have abandoned all manufacturing and are being made by mainland Chinese companies.China has become a major platform for the transfer of LED industry.With the improvement of domestic production capacity concentration and the thickening of technical barriers, excellent companies in the industry will enjoy the dividends brought by the growth of market size and technological upgrading, and are expected to increase their overseas and high-end market shares.
Mr. Sun said the company's unique craftsmanship and technological innovation are key to its expansion.Since the establishment of the company adhere to r & d investment, improve the level of automation production.In terms of supporting components, the company's bracket, mold, electroplating, plastic and so on are leading counterparts;The company has formed its own standardized production system, thus forming unique cost control advantages and high bargaining power.Through the layout of the entire industrial chain, the company's scale effect is constantly emerging.The price of upstream chip falls, the unit cost that makes a product falls further.The company's market competitiveness has been continuously enhanced, and its market share has been increasing year by year.
"The concentration of the industry is relatively dispersed, and the potential for future development is still great."Sun qinghuan pointed out that from the current market share of mulinsen, although private brands have occupied a decisive position, but only 20% of the domestic market share.In terms of overseas OEM orders, mu linsen only undertakes about 10% of LEDVANCE's share."The market demand space is big, we have been expanding investment in the manufacturing sector, the demand for capital is relatively large."
In the third quarter of 2018, the company completed major asset restructuring and acquisition of osram general lighting spin-off business -LEDVANCE company, with the operating revenue reaching 12.35 billion yuan, successfully achieving the first "10 billion" target.As the first LED manufacturer to annex international lighting brands in China, mullinsen will face the problem of how to maximize the synergies between domestic and international channels.
Throughout the existing well-known domestic LED brands, their main sales businesses are in the domestic market, overseas market development is quite difficult, need a long time to accumulate."The difficulty is how to convert the traditional light source from overseas channels into LED light source."According to sun, compared with the domestic LED replacement rate of 50%, the overseas LED light source replacement rate is less than 20%, and the consumption level is higher, so the overseas lighting market has more space.
At the end of 2017, philips, the world's biggest seller by sales, had annual revenues of 7 billion euros, while LEDVANCE, in second place, had sales of less than 2 billion euros.LEDVANCE has a strong network of agents and distributors, with sales offices in more than 50 markets around the world."With the backing of a global brand, mullinson's manufacturing advantage will be further expanded."According to Mr. Mullinson's calculations, less than 10% of LEDVANCE's lighting products are now made by the company.Increasing that to 30 percent would generate 20 to 30 percent growth in the company's manufacturing sector.
Sun said the company's overseas integration is gradually underway, and the new CEO of LEDVANCE will be Lin jiliang, executive general manager of log forest.The new procurement center has been set up in shenzhen, and the overall operation has been steadily improving.
From the business income of mullinson in the third quarter of 2018, the lighting business has exceeded the traditional packaging business.Mu linsen has become a global lighting market leader from a packaging company.The future will take the brand as the breakthrough, further opens the downstream application market.
LED lighting products gradually replace traditional lighting products and become the main force of household, commercial, industrial and outdoor lighting.Due to the rapid improvement of LED lighting products cost performance, the penetration rate increases year by year.In 2017, the global LED lighting penetration rate reached about 40%.As LED lighting technology matures, there is still room for global LED lighting penetration to double.