Hongqi's revenue in January this year reflects the lunar New Year customers pull goods, but still reduced by more than 20 percent annually.
Looking ahead to this year, the company will strengthen the expansion of new products business, although the growth of revenue is not easy, but the profit is expected to remain stable or improve.
Among them, Mini LED in commercial display and backlight applications in sync, the target of this year's revenue share can exceed 10 percent.
In addition, IR products continue to expand into a small number of diverse niche applications.
Despite the impact of trade friction, terminal consumption and enterprise expenditure wait and see, however, the bright spot of the LED industry new technology Mini LED has been introduced into terminal application products since the second half of 2018, the initial stage is dominated by e-sports applications, high-end commercial displays and other products.
At present, hongqi's Mini LED is developed synchronously with backlight and display.
Among them, the backlight application has entered into the supply chain of e-sports displays in the early stage, while the display application focuses on high-end commercial displays with the self-developed 4-in 1 RGB LED. The target is to increase the proportion of Mini LED products in the revenue from less than 3% last year to more than 10% this year.
In addition, hongqi has been actively expanding the business of IR products in recent years, and will continue to expand into the niche market of smart home appliances, special application consumer electronics products and other products this year. It is estimated that the revenue share of IR products will also have the opportunity to challenge 10% in this year.
In terms of product mix, last year, the proportion of consumer products was about 50%, the proportion of display screens was about 30%, and the total revenue of new products such as IR and Mini LED was about 10%.
Due to the company's recent aggressive expansion into niche applications, last year's revenue, gross margin, profit fell in sync, but the decline is limited, the legal estimate last year's earnings per share is still nearly 1 yuan.
If the new business development is in line with expectations, this year profit may have the opportunity to improve.
In recent years, hongqi has been focusing on display screen, car panel and other products, and strengthening the research and development of Mini LED and RFID chips and other products.
Ship company said that since the second quarter of this year the Mini LED growth is expected to clear, drive the company's performance back to the temperature, the second half of this year performance will be better than the first half, full-year results will be better than last year, the company aims to consumer product revenue accounted for slope to 40% this year, accounted for about 33%, Mini LED display products accounted for 15% of revenue to LED, infrared (IR) revenue accounted for about 10%.