Investigation on the hottest Dongxu photoelectric

2022-07-23
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Dongxu photoelectric cover glass project investigates its future development prospects

2017 is the first year for Dongxu photoelectric to consolidate the two subsidiaries of Shenlong bus and Xuhong photoelectric, whether the two subsidiaries can complete the performance gambling on schedule, the progress of supporting fund-raising and use, and whether the synergy with the existing businesses of Dongxu photoelectric can be brought into full play, Both have become the focus of its annual report disclosure (the company's annual report is scheduled to be disclosed on April 27)

although the merger and acquisition of the two assets are of great significance to the strategic layout and industrial transformation of Dongxu optoelectronics, compared with the acquisition of Shenlong bus with new energy vehicle production license, the merger and acquisition of Xuhong optoelectronics was previously considered by some market participants as not an "emerging industry". What is its future development prospect? To this end, the Securities Times recently made a special trip to Xuhong Optoelectronics in Mianyang, Sichuan Province for field research

it is learned that Xuhong optoelectronics has a greater probability of exceeding its performance commitments in 2017 and the next few years. On the one hand, with the rise of 5g in downstream communication industry and wireless charging technology, most rear covers will also use glass, which greatly increases the demand for cover glass. At the same time, the hottest curved surface glass processing in the market has become a new business increment of the company; On the other hand, the localization of cover glass is in the ascendant, and the high cost performance of Xuhong products is leading to the reconstruction of the global industrial pattern

rapid mass production of raised investment projects

in 2017, Dongxu optoelectronics purchased 100% equity of Shanghai Shenlong bus and 120million shares of Xuhong optoelectronics by issuing 260million shares and 400million cash at the price of 9.90 yuan per share. At the same time, the company raised 3.75 billion yuan of supporting funds to invest in the production of new energy passenger cars and logistics vehicles, and the production of cover glass for curved surface display. Among them, the scale of curved cover glass after the project is completed is 36million pieces per year

at the Xuhong optoelectronics site, the raised investment project of curved cover glass has formed a product. According to renshuming, the person in charge of the curved cover glass project, the company has formed an annual production capacity of 5million pieces and has supplied products to customers in batches

"the scale of 36million pieces of curved cover glass refers to small pieces of curved glass. Since the company had no cover glass processing business before, it first produced in a small scale." Renshuming explained, "In the future, on the one hand, the company will continue to improve production efficiency, product yield and product quality on the existing basis, while reducing energy consumption; on the other hand, it will carry out leapfrog technological upgrading of the business. At present, the technological development has been completed and equipment manufacturing is under way. These technologies will greatly improve the production efficiency of curved glass, significantly improve product stability and greatly reduce energy consumption. Under the condition of consolidating the foundation, we will Gradually release capacity. "

the reason why Xuhong optoelectronics can build a production line and mass produce in less than half a year is closely related to the company's previous technical accumulation in the field of electronic glass. In 2014, Xuhong optoelectronics developed the first domestic cover glass product "King Panda" specially manufactured for intelligent touch terminals. In 2015, it successfully trial produced the world's thinnest 0.3mm float cover glass that can be bent 360 degrees, breaking the 0.4mm industry record previously maintained by the company

Ren Shuming said, "3D curved glass also needs the original piece, which is the basic industry of the company. At the same time, the company has accumulated corresponding technology in the process of 3D glass processing, from raw material burning to 1600 ℃ to thermal bonding. Therefore, we have the ability to improve the quality of curved glass and better control the cost."

with the intelligent industry entering the era of full screen, curved glass is regarded as entering the demand explosion season in the industry. According to the prediction of Huatai Securities, from 2017 to 2021, the market scale of 3D glass industry will reach 97billion yuan to 156billion yuan

therefore, leading companies in the industry have increased their investment and construction capacity. According to the preliminary statistics of public data in the past two years, A-share companies, including Dongxu optoelectronics, Lianchuang electronics and Lansi technology, have announced an investment of more than 30 yuan in the 3D glass industry. Taiyuan: the waste materials used by primary school students to make lanterns have become "treasures" of 0 billion yuan

insiders disclosed that the price of each curved glass in China's enterprises with weak innovation ability is usually between 60-100 yuan, and the products with high technical requirements can even reach more than 200 yuan. According to this standard, if Xuhong's annual production capacity of 36million pieces is in line, Xuhong is expected to achieve an annual sales revenue of 2billion yuan, which will exceed one quarter of the operating revenue of Dongxu Optoelectronics in the first three quarters of 2017

although the market space is vast, the non-performing rate is still the core challenge facing the industry, which also leads to a relatively low level of net profit. Renshuming told the analysis that hot bending, polishing and other factors will lead to the loss of yield such as size deviation. Now Xuhong's surface yield has reached a considerable level, and the original film can reach more than 95%

labor cost is also the reason why the cost of curved glass is higher than that of the original film business. Because each piece of curved glass needs manual full inspection or sampling inspection, the cost is high. For this reason, Lansi technology, Xuhong optoelectronics and other companies are accelerating the start of intelligent automation production line projects

"on the whole, curved glass is still in the process of climbing, and technology and staff proficiency need to reach a good state to ensure the improvement of profit margin. Ren Shuming said that the development of curved glass largely depends on technology, yield and labor cost, which are the influencing factors to improve the profit level in the future."

cover glass "increases both in volume and price"

compared with curved glass, Xuhong's traditional advantage business is the original cover glass. Due to the R & D and successful production of the "King Panda" high aluminum ultra-thin touch screen protection glass, the cover glass market previously monopolized by leading enterprises such as Corning, Asahi and electric nitrate in Japan is undergoing drastic changes

"the performance level of domestic cover glass products has been equivalent to the international level, but the cost is relatively low, so the cost performance ratio is higher." Renshuming analyzed and said, "Before that, domestic enterprises started late in this industry, and their brand influence was not as strong as that of several other international giants. Before that, some customers often thought that the quality of domestic glass was not as good as that of international brands. However, with the gradual expansion of the influence of 'King Panda' and other cover glass brands, customer recognition continued to improve. In the long run, customers will eventually choose domestic cover glass products with higher cost performance."

but localization does not mean low price competition. In fact, in the process of client expansion, the price of some original products of Xuhong has increased by 30% last year. "Even so, compared with international giants, the price of the original film still has a great comparative advantage." Renshuming said

5g construction trend and wireless charging business are also bringing new increment to the original glass. According to a communication expert, "driven by new technologies such as wireless charging and 5g, the trend of back plate demetallization is obvious. 5g communication will adopt millimeter wave technology, with poor penetration of high-frequency electromagnetic waves, and the metal back cover has an obvious shielding effect on signals; while the glass back plate has a high degree of certainty, which means that the protective glass is from one side to two sides. Among them, the 3D curved glass back cover is expected to become the mainstream configuration of high-end flagship models."

at present, users of flagship models of Samsung and Huawei can only select products and equipment that are more suitable for themselves. Glass rear covers have been gradually adopted for iphone8 and iphonex, causing impact. The industry predicts that the global penetration rate of smart glass rear covers will reach 32% in 2018 and 60% in 2020, with a corresponding market size of more than 50billion yuan

5g uses a glass back cover, which means doubling the potential market space. At present, in terms of glass back cover, lens technology and Bourne optics occupy most of the market share, and actively increase the 3D glass production capacity. "Xuhong is not only developing the processing business of curved glass, but also the glass supplier of the above two companies." Renshuming said

or exceeding the performance commitment

the expansion of curved glass business line directly changes Xuhong's existing business chain model. From selling to downstream manufacturers, to selling to downstream manufacturers and directly making curved glass by the company itself

when it was injected into the listed company, the shareholders of Xuhong optoelectronics made a performance commitment that the net profit from 2017 to 2019 would not be less than 75million yuan, 98million yuan and 115million yuan respectively. Under the strategic mode of "walking on two legs", the company disclosed that the probability of exceeding the performance commitment indicators in 2017 is greater

"last year, the company raised the price of the original glass, which not only improved the net interest rate, but also showed the recognition of customers." Renshuming said that in 2018, the company is also confident to exceed its performance commitments. "In 2018, the company will continue to expand downstream customers to use the company's products from the aspect of original films; while the product supply exceeds demand, the company will increase production capacity and obtain more sales. Therefore, the company will continue to improve the existing product technology, develop new equipment, reduce costs and improve yield."

the field of on-board display may be one of the important entry points for Xuhong to expand new customers in the future. "The larger the size, the higher the requirements for yield; moreover, the vehicle should achieve anti glare, anti fingerprint and antireflection effects, so the threshold is relatively higher." Renshuming said, but the on-board display screen is certainly a market with great potential in the future. "In this market, the introduction takes a long time, usually 2-3 years. However, once it is introduced, a specific model will achieve a long-term sales period of 5-7 years, and other manufacturers will not be replaced in the middle. Therefore, the market stability is better and the profit margin is higher."

in addition to Xuhong's own preparation technology improvement and customer expansion, the synergy between the company and Dongxu optoelectronics is also fermenting. Renshuming said that before and after the change of Xuhong optoelectronics' controlling shareholder, it has brought many changes to the company. "Firstly, different from the previous joint decision-making by multiple shareholders, Xuhong's business decision-making efficiency is relatively higher; secondly, it has increasingly formed coordination with Dongxu Optoelectronics in terms of market, technology and management. For example, Dongxu optoelectronics' TFT business has always had a close business relationship with BOE and other Longtou companies, and these market resources can be fully shared in the future."

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