On September 12, Xiamen Xinda announced that it plans to raise 700 million yuan to invest in LED and RFID projects. Stimulated by this news on the same day, Xiamen Xinda's share price changed for a few days, falling by 4.77%.
According to the China Economic Times reporter, there are currently more than 200 LED manufacturing companies in Xiamen, which have experienced a period of rapid development in previous years. Since 2012, this industry has highlighted overcapacity. This time, Xiamen Xinda's contrarian expansion will have a certain impact on the stock price.
Huge fundraising
Xiamen Xinda’s directional issuance plan disclosed that the company plans to issue no more than 80 million shares at a price of not less than 9.72 yuan per share, and raise funds of no more than 700 million yuan for the new LED packaging project and the expansion of LED application products in Xiamen. Production projects, RFID product design and production line expansion projects.
The plan shows that the new project of Anxi LED package will build a new PLCC white LED product production line, PLCC type 2121RGB product production line, EMC white light product production line, etc. Xiamen LED application product expansion project will build LED outdoor lighting application production line and LED indoor lighting application production line. (Fluorescent lights, etc.
Xiamen Xinda said that after the project was put into production, the annual average total profit was 44.61 million yuan, 26.48 million yuan and 23.47 million yuan respectively.
What worries the market is that according to the information of Xiamen Optoelectronics Industry Association, there are currently more than 200 LED manufacturing enterprises in Xiamen, and the current production capacity is already surplus.
On the 12th, stimulated by the additional news, on the same day, Xiamen Xinda opened lower and went down. It changed the trend of rising in a few days, and the day fell by 4.77%.
Industry cold wave capital chain tension
Dr. Zhang Xiaofei, CEO of Gaogong LED, believes that the overall surplus of the entire LED industry in mainland China has not been fundamentally changed. From the extension, chip, package, downstream, there is a surplus of production capacity. Whether the market situation is really improving or not depends on the market trend in the third and fourth quarters of this year.
It is undeniable that Xiamen Xinda intends to invest in LEDs against the market, and there is also a large market risk after capacity expansion.
In this regard, Xiamen Xinda admitted that the construction period of the RFID product design and production line expansion project will be 2 years after the project is completed. After the project is completed, it will form an annual output of more than 200 million RFID tags and more than 10,000 units. New capacity for reading and writing equipment.
Although the market prospects of this fundraising investment project are very broad, but RFID and other products as a new type of product, the market acceptance requires a process. If the company's market development is weak, it may cause market risks caused by capacity expansion.
It is worth noting that according to this reporter, Xiamen Xinda has a tight capital chain and a high asset-liability ratio. The company's financial information shows that at the end of 2010, the end of 2011, the end of 2012 and June 30, 2013, the company's (parent company) asset-liability ratio reached 77.09%, 83.17%, 85.33% and 88.88%, respectively, the company (consolidated) asset-liability ratio The ratios of asset-liability ratios are gradually increasing, reaching 69.97%, 75.77%, 78.26% and 86.40% respectively.
What worries the market is that as of June 30, 2013, the company's debt balance was 7.874 billion yuan and the interest-bearing debt balance was 4.208 billion yuan.
In addition to the high debt ratio, Xiamen Cinda's profitability is also average. According to financial information, Xiamen Xinda’s net profit for the past three years has been hovering between 50 million and 80 million yuan. In the situation of overcapacity in the industry, the company has invested 700 million yuan to build LED projects. Is it worth discussing?
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
According to the China Economic Times reporter, there are currently more than 200 LED manufacturing companies in Xiamen, which have experienced a period of rapid development in previous years. Since 2012, this industry has highlighted overcapacity. This time, Xiamen Xinda's contrarian expansion will have a certain impact on the stock price.
Huge fundraising
Xiamen Xinda’s directional issuance plan disclosed that the company plans to issue no more than 80 million shares at a price of not less than 9.72 yuan per share, and raise funds of no more than 700 million yuan for the new LED packaging project and the expansion of LED application products in Xiamen. Production projects, RFID product design and production line expansion projects.
The plan shows that the new project of Anxi LED package will build a new PLCC white LED product production line, PLCC type 2121RGB product production line, EMC white light product production line, etc. Xiamen LED application product expansion project will build LED outdoor lighting application production line and LED indoor lighting application production line. (Fluorescent lights, etc.
Xiamen Xinda said that after the project was put into production, the annual average total profit was 44.61 million yuan, 26.48 million yuan and 23.47 million yuan respectively.
What worries the market is that according to the information of Xiamen Optoelectronics Industry Association, there are currently more than 200 LED manufacturing enterprises in Xiamen, and the current production capacity is already surplus.
On the 12th, stimulated by the additional news, on the same day, Xiamen Xinda opened lower and went down. It changed the trend of rising in a few days, and the day fell by 4.77%.
Industry cold wave capital chain tension
Dr. Zhang Xiaofei, CEO of Gaogong LED, believes that the overall surplus of the entire LED industry in mainland China has not been fundamentally changed. From the extension, chip, package, downstream, there is a surplus of production capacity. Whether the market situation is really improving or not depends on the market trend in the third and fourth quarters of this year.
It is undeniable that Xiamen Xinda intends to invest in LEDs against the market, and there is also a large market risk after capacity expansion.
In this regard, Xiamen Xinda admitted that the construction period of the RFID product design and production line expansion project will be 2 years after the project is completed. After the project is completed, it will form an annual output of more than 200 million RFID tags and more than 10,000 units. New capacity for reading and writing equipment.
Although the market prospects of this fundraising investment project are very broad, but RFID and other products as a new type of product, the market acceptance requires a process. If the company's market development is weak, it may cause market risks caused by capacity expansion.
It is worth noting that according to this reporter, Xiamen Xinda has a tight capital chain and a high asset-liability ratio. The company's financial information shows that at the end of 2010, the end of 2011, the end of 2012 and June 30, 2013, the company's (parent company) asset-liability ratio reached 77.09%, 83.17%, 85.33% and 88.88%, respectively, the company (consolidated) asset-liability ratio The ratios of asset-liability ratios are gradually increasing, reaching 69.97%, 75.77%, 78.26% and 86.40% respectively.
What worries the market is that as of June 30, 2013, the company's debt balance was 7.874 billion yuan and the interest-bearing debt balance was 4.208 billion yuan.
In addition to the high debt ratio, Xiamen Cinda's profitability is also average. According to financial information, Xiamen Xinda’s net profit for the past three years has been hovering between 50 million and 80 million yuan. In the situation of overcapacity in the industry, the company has invested 700 million yuan to build LED projects. Is it worth discussing?
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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