Mu Linsen (002745): LEDVANCE’s Exceeded Expected Package Business Is Expected to Bottom Up

Mu Linsen (002745): LEDVANCE’s Exceeded Expected Package Business Is Expected to Bottom Up

Event: The company released the company’s operating income of 179.

52 ppm, a 119-year increase.

76%, of which, LED materials 淡水桑拿网 achieved operating income of 63.

180,000 yuan, LED finally realized operating income 113.

8.9 billion, accounting for 35 of operating income.

20% and 63.


Net profit attributable to shareholders of listed companies.

20 ppm, a ten-year increase of 7.


The packaging business was affected by the industry boom and its own relocation, exceeding expectations.

Since the second half of the year, the company has experienced negative growth, mainly from the downturn in the packaging business.

The merger, the company’s Zhongshan and Ji’an are still in the process of production line adjustment, packaging capacity is lacking, and incidental accidents caused by suppliers brought the company2.

With a loss of 700 million U.S. dollars, production and operation failed to meet expectations; it was reduced. Due to the impact of macroeconomic and trade frictions, the 重庆耍耍网 downstream demand for LEDs was weak, and the company received serious attention as a packaging leader.

If the government subsidy is replaced, the packaging business will be replaced in the long run.

At present, the adjustment of the company’s production line is nearing completion. Through the recovery of accumulated production capacity, the company’s profitability will gradually recover.

The first year of LEDVANCE consolidation exceeded expectations.

The highest contribution of LEDVANCE goes to the mother’s net profit2.

1.8 billion, is the company’s main source of non-profit deductions.

In terms of gross profit margin, we estimate that the overall gross profit margin of LEDVANCE is above 32% (for reference, the gross profit margin of Mulinson’s overseas business is 31.

35%, including a small amount of overseas business of Mulinsen), compared to 28 in 2017H1 before the acquisition.

The 61% increase is obvious, indicating that LEDVANCE has been in a good operating condition after the acquisition.

The scale of operation, LEDVANCE is more resolutely transforming to LED, while simultaneously developing ground and downstream lighting business; at the same time transforming the supply chain and research and development base into a domestic transition, costs and expenses are effectively reduced, and operating efficiency is also improved.

In the environment where the global lighting industry is generally sluggish, LEDVANCE still has a good performance, showing a good synergy between Mulinsen and LEDVANCE.

Internationalization of business and product branding go hand in hand, and the company’s focus is shifting downwards.

Mu Linsen is based on the domestic LED packaging business. After being divided into LEDVANCE, it will reorganize and enrich the downstream business, forming two major layouts of “manufacturing + branding”; and it is expected to extend the business to the world, so that the advantages of Chinese manufacturing can be fully exerted, and the future potential is unlimited.

LED applications now account for 63 of total revenue.

44%, there is no doubt that the end product will be the focus of the company’s operations.

As a well-known global lighting brand, LEDVANCE is expected to further increase its profit margin after a deep adjustment of its business strategy, becoming a source of profit for listed companies.

Profit forecast and estimation.

LED packaging business is expected to bottom out, LEDVANCE development is smooth, we expect listed companies in 2019?
2021 revenues are 223.



6.3 billion, net profit attributable to mother 8.



170,000 yuan, maintain “Buy” rating.
risk warning.
Total LED lighting demand; LED packaging competition is intensifying.