Taiwan's Yujingguang seizes the ten cities in mainland China

On January 24th, according to Taiwan media reports, Yu Jingguang rushed to attack the mainland LED street lamp market and then passed the good news. It was reported that it had received orders for thousands of street lamps in South China. It has already started shipping. It is expected to be shipped at the end of this year and early next year. Since Yujingguang has been awarded a 3 million-pixel high-end mobile phone lens order from the US-based mobile phone manufacturer, and the LED street light is partially credited, Yu Jingguang’s December performance is not bearish, and next year’s new orders for high-end mobile phone lenses and LED street lights will be shipped. Gradually climbing, the performance outlook is optimistic, and there is a chance to get rid of the bottom of the past few years.

In order to implement energy conservation and carbon reduction in China, solar energy and LED have become key industries, and cities have also accelerated the full replacement of street lamps into LED street lights. It is understood that the original “Ten Cities and Ten Thousand Miles” plan is expected to expand to “Ten Cities and Ten Thousand Cities”. In addition to the original cities of Beijing, Shanghai, Shenzhen, Wuhan, Heilongjiang, Hebei and Guangzhou, four cities including Fuzhou, Xiamen and Chengdu will be added. The annual LED street lights in the mainland will be about 2 million baht. There are 80 million baht in the whole continent, and the output value is 1.625 billion US dollars. The huge business opportunities attract LED factories to compete. In order to assist the domestic industry, the Ministry of Economic Affairs will coordinate the LED industry to form a cooperative alliance, and combine traditional Taiwanese traditional lighting manufacturers to grab the mainland street lamp pie. Industry, such as Jingdian (2448) and Yujingguang (3406), are expected to participate.

Looking at the mainland LED streetlight business opportunities, Yujingguang has a low-profile layout in the mainland. Recently, it has received orders for thousands of street lamps in South China. It has already started shipping. It is expected to be shipped at the end of this year and early next year. This is also the LED street light of Yujingguang in the mainland. In the first batch of orders with scale, Yuguangguang and Philips Lumileds jointly announced LED lighting solutions using Philips LUXEON Rebel technology. It is expected that the LED street lights of the new solid-state lighting and streetlight modules will be put into installation and use early next year. After the order of this batch of Millennium Street lamps, the technology of Yujingguang has been affirmed. It will be helpful for Yujingguang to attack LED street lights in other cities. It is understood that Yujingguang has been working in Xiamen for a long time, and its production base is also in Xiamen. With the technology affirmed, it is expected to stand out in the LED street lamp standard in Xiamen, and the LED street lamp will also become one of the main kinetic energy of the next year's performance.

In the mobile phone segment, Yu Jingguang actively adjusted the production line to improve the yield and quality of the high-resolution lens. Last year, he took the lead in the iPhone supply chain and won the new consumer product orders, affirming the company's technical capabilities, and the company continued to 300. After the development of 10,000-dimensional painting, after three months of sample delivery certification, the 3 million-pixel lens has passed the certification of the US-based smart phone manufacturer, and began to ship in small quantities in December. This is the first time that Yujingguang’s 3 million-pixel high-end lens has been hit. Entering the first-line smart phone manufacturers, Yu Jingguang's performance in the fourth quarter of this year and next year will be even more powerful.

At present, Yujingguang's 2 million pixels to 3 million pixels and VGA lens production account for about 50% of the total. After winning the orders of the US major manufacturers, the proportion of the future 3 million pixel products will increase rapidly, and it is expected to further increase Yujingguang. The gross profit margin, under the warming of the shipment of the two major products, Yu Jingguang's performance outlook is optimistic next year, and the operation is expected to get rid of the bottom in recent years.

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