Following a survey conducted by Liard and Opel Lighting, Lehman, a large LED display manufacturer, received a centralized survey from 29 institutional investors on December 12. The chairman and President of the company, Li Mantie, and the vice president and Secretary of the board of directors, Luo Yi, made investments in the company's current situation, market strategy, business cooperation and operating income, and future development. In depth exchange and communication, the company's COB business has attracted strong attention from capital.——Micro/Mini LED
The capital is in good condition, and we will firmly strengthen the LED small spacing market in the future.
Li Mantie, introducing the company's status quo, said Lehman shares currently low asset-liability ratio, only 18%, lower than the industry average; book cash of about 200 million, adequate funds, and low cost of capital use, capital situation is good; goodwill book value of about 200 million, relatively small impairment risk; the current market value of about 1.8 billion, about 1.1 billion net assets. The net market rate is only about 1.64. The company has a relatively high share of the actual controller, holding more than 50%.——Micro/Mini LED
In recent two years, the company's COB display products with its excellent display performance advantages, can meet customer demand for product innovation, differentiation, the market response is good, blooming at home and abroad, has shipped tens of millions of dollars in the first half. At present, COB small spacing occupies less than 5% of the LED small spacing market. With the increasing recognition of COB display technology, COB small spacing market has a large space. The company is expected to take advantage of the rapid growth of COB display panel business to form a differential competitive advantage, and the future performance development space and growth potential is huge.——Micro/Mini LED
In addition, Li Mantie said in looking forward to the company's future, the company is firmly optimistic about the LED small space market, the company has started two years ago to set up a COB display project, relying on more than ten years of packaging and display technology accumulation, COB high-definition display products have been realized mass production. The company has invested more than 70 million yuan and is expected to invest 100 million yuan by the end of the year. The input-output ratio can reach 1:4, and next year it will gradually release production capacity and profits. Follow up companies will also use their own funds to further expand production, and continuously improve the market share.——Micro/Mini LED
Lehman is the first LED listed company in Shenzhen. At present, its market value is low. In the future, Lehman will focus on the high-tech LED industry, and make the small-spacing LED display panel COB as the strategic focus of products and technology in the next three years. Lehman will continue to increase investment in this field, expand existing capacity, and build the core competitiveness of the company in the COB subdivision area. . At present, the traditional SMD products are seriously homogeneous, and COB packaging technology is favored by the industry. It is considered that LED display technology is the only way to Micro LED. It is expected that the market share of small spacing LED display panel products in the small spacing LED market will be greatly improved in the future. It will become the mainstream product of high-definition display with small spacing LED in the next few years. The company's COB business will also become the growth point of the company in the next three years.——Micro/Mini LED
COB business has received strong attention and institutional investors frequently ask questions.
According to Lehman's Investor Activity Record List, eight of the 15 questions raised by investors in the interactive exchanges related to the COB business.
Q: what is the current domestic market promotion of COB business?
Li Mantie: In the past Lehman display products in the domestic market accounted for less, since last year launched the third generation of COB high-definition display products, the company believes that with a unique advantage of the COB products can open the domestic market. Because the application area is all over the country, the industry is also very extensive, so the company uses the regional + industry market layout. Areas including more than 30 provinces in the country are pushing, industry including military, public security, security, radio and television, power, water conservancy, emergency center, etc. are applicable areas.——Micro/Mini LED
The COB marketing strategy of the company is to form strategic alliances with high quality customers and implement the strategy of big customers. By establishing cooperative relations with strategic partners and combining the abundant resource advantages of strategic partners in the relevant industries in the relevant regions, the company provides appropriate differentiated products, and gives appropriate concessional space to jointly increase the promotion and expansion of the company's COB products. Next, the company will negotiate with more than 100 partners to establish relations, close cooperation, and constantly strengthen the promotion of COB business market. At present, there is a good trend, that is, domestic customers are more recognized the company's COB products, think that the company's COB products can meet its use requirements, and will not be out of date within five to seven years.——Micro/Mini LED
Q: the price of the COB product of the company?
Li Mantie: At present, the price of COB is about 10% higher than SMD, but the product performance is higher than SMD, and the use and maintenance cost is also lower. In the future, the price will decrease with the increase of product scale and yield, and the price will be about 10% lower than SMD after large-scale production.——Micro/Mini LED
Q: how much is the cost of chip products for COB products? Is there a positive impact on the decline in chip prices?
Li Mantie: Chips account for about 20% of the cost of COB materials. Decreasing chip prices will provide some room for price reductions, but COB chips require more than conventional chips with smaller spacing.——Micro/Mini LED
Q: does the company produce COB display panel equipment purchased by the company?
Li Mantie: The company's COB display panel production equipment, part of the domestic procurement, part of the company's technology and production needs are customized overseas. Therefore, the COB industry chain is relatively strict, with technical barriers and capital barriers.——Micro/Mini LED
Q: what advantages do the company COB have compared with the traditional surface products?
Li Mantie: At present, the integrated package technology of chip on board is adopted in our independent research and development of the COB display panel, which combines the package and display technology. It has the technical advantages of high density, high protection, high reliability, high adaptability, high picture quality and low use cost. Its comprehensive performance is better than the surface mount products on the market at present. At the present stage, its cost and price will be higher than that of the above products. However, as the point spacing goes down, the traditional SMD products with small spacing enter the bottleneck period, there are many product pain points, such as product stability is severely tested, maintenance costs are high.——Micro/Mini LED
The third generation of COB products we developed as LED small spacing update iteration products, with high protection features, with anti-collision, moisture-proof, shock-proof, positive waterproof advantages; high reliability with the process to avoid thermal damage, inherently healthy characteristics; high adaptability to meet the characteristics of indoor use of various environments; high picture quality with High contrast, high resolution, high gamut characteristics; low cost of use with low energy consumption, low maintenance and installation costs. From the production process and cost point of view, COB technology eliminates the SMD bracket and SMT reflow welding link, no virtual welding risk, higher reliability, its cost will be reduced with the scale of production and yield improvement, these characteristics make it more cost-effective than the surface-mounted products.——Micro/Mini LED
Q: how about the refund of the COB order?
Li Mantie: The company is a product equipment provider and system integrator cooperation, mainly for the system integrator to provide product support, and the company's products with unique advantages bargaining power is strong, so the order payment situation is better.——Micro/Mini LED
Q: how much is the gross profit margin of COB products?
Li Mantie: The company's COB product gross profit is relatively high, net profit margin is relatively high, mainly due to the unique product of dividends.——Micro/Mini LED
Q: is there any other company doing COB products in China? What is the difference between Lehman and them?
Li Mantie: There are one or two non-listed companies in China also have COB products, but our products are the latest generation of technology, using more advanced technology line. As a listed company, the company has the advantages of capital and R&D. At the same time, the company has more than ten years of core packaging and display technology accumulation, and has dozens of COB related patents and proprietary technology. At present, the company's COB products are at least one to two years ahead of its peers.——Micro/Mini LED
Lehman shares are expected to launch Micro LED in 2020.
With the contention of a hundred new display technologies, the application prospects of OLED, LCD, LED, Mini/Micro LED and other solutions have attracted institutional investors'attention.
Talking about the application prospects of OLED, LCD, LED in commercial display, Li Mantie said that this is mainly related to display size, less than 80 inches of display, LCD, OLED can be mass produced. LCD, OLED and so on will be of no commercial significance if they are more than 80 inches, and their price and performance will have a big bottleneck. Over 80 inches is currently mainly projection, including the market of laser television, the other major solution is LED ultra-small spacing, and COB excellent display performance and high reliability in large-scale commercial display will be more advantageous. Projection itself has certain limitations in luminance, color and contrast. COB display has the advantages of higher contrast, wider color gamut, better picture quality, more flexible and fast stitching methods and higher environmental adaptability. The future COB display panel opens up more than 80 inches of the market, projection market. Space will be subject to certain restrictions.——Micro/Mini LED
At the same time, Li Mantie also introduced Lehman shares about the layout of Mini/Micro LED. In Lehman's specific three-year product plan, it is planned to launch the Mini LED of P 0.9 by the end of this month, the Mini LED of P 0.6 by March next year, the flip-flop process of P 0.5 Lehman Mini LED by the second quarter of 2009, and the micro LED by 2020. Mini / Micro LED is a high-density integrated micro-size LED array on a chip. It is the next generation of micro-spacing display technology based on COB packaging. It is a further upgrade of small-spacing LED. Lehman has the ability of flip-chip COB packaging, flip-chip COB compared with the normal, can do very small size, can be a good solution to the current congestion, high thermal resistance problems, to achieve a high current density and uniformity. In the future, Mini/Micro LED also needs the cooperation of COB technology.——Micro/Mini LED
Finally, Li Mantie responded to the company's response to the Sino US trade war. He said the company's export business accounted for about 70%, of which the United States accounted for about 30% of the business. At present, the company is also adjusting its sales strategy, with the help of COB to open up the domestic market, the company's COB business popularity continues to rise, is expected to increase COB revenue in the future, the next two years, the domestic business share is estimated to exceed 50%.——Micro/Mini LED
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