Lianchuang Optoelectronics: Industry growth potential is huge (Figure)



The company is a key high-tech enterprise of the National Torch Program, a national industrialization base for the "863 Program", a national "indium gallium nitride LED epitaxial wafer, chip industrialization" demonstration project enterprise, and a core enterprise of Nanchang National Semiconductor Lighting Engineering Industrialization Base. The company's 2007 mid-year report showed that net profit in the first half of the year increased by 102.62% year-on-year due to the expansion of sales scale and the increase in gross profit margin. As one of the largest industrial bases in semiconductor lighting engineering, the company has broad prospects for future market development.

According to recent research reports, while the growth rate of investment scale has rebounded, the growth rate of sales revenue of electronic components industry has gradually picked up. Especially in the electronic component industry, since April, the year-on-year growth rate has remained at around 30%. The gradual recovery of fixed asset investment has also laid the foundation for the expansion of the capacity of the component industry. The domestic electronic components industry is expected to maintain a growth rate of more than 30% in 07, 08 and 2009. Statistics released by the Ministry of Information Industry show that from January to July, China’s exports of electronic information products amounted to US$235.32 billion, a year-on-year increase of 25.9%, accounting for 36% of the country’s foreign trade exports. The total import of electronic information products was US$182.09 billion, a year-on-year increase of 19.3%. These indicate that China's electronics industry is growing at a faster pace and is also a golden period for the company's development.

The company has an internationally advanced level of optoelectronic product production line, forming a relatively complete industrial chain and large-scale production from LED epitaxial wafers, chips, devices to full-color display, semiconductor lighting source and other application products. The products sell well throughout the country and are exported in large quantities. In the near future, the company has intensified its industrial integration. It has increased its capital of 13.291 million yuan to Jiangxi Lianchuang Communication Co., Ltd., a holding subsidiary, and increased its registered capital by 1 million US dollars to Jiangxi Lianchuang Zhiguang Technology Co., Ltd. Taking advantage of the technical advantages of the company's cable branch to produce RF cables for mobile communications, based on the existing facilities of Ji'an Cable Technology Park, it will invest an additional 28.1 million yuan. It will build a new production plant of 18,000 square meters; introduce a hydraulic high-temperature push production line, purchase a domestic extrusion jacket (including foam insulation extrusion) production line, a cable production line, high-speed knitting machine, etc.; add 3G mobile communication with high performance The production capacity of coaxial cable is 6000km. The size and revenue of the company will be further expanded.

Recently, the company announced that it will win the bid for China Mobile's 2007 procurement bidding project, which will provide China Mobile with feeders, feeder cards, connectors and jumpers, totaling approximately RMB 250 million. It can be seen that the company's performance growth will be continuous, and the future development will be sustainable.

In the secondary market, the stock has recently oscillated to form an adjustment platform, and the moving average system has strong support for the stock price. Recently, the volatility has increased, and the stocks have been put in place. There are signs of starting up the market, which can be focused.


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