Key Analysis
On the evening of March 14, Wanrun Technology released the first annual report of LED packaging listed companies. In 2012, the company achieved operating income of 389 million yuan, a year-on-year increase of 3.76%, and net profit of 38.485 million yuan, a year-on-year decrease of 28.82%. The performance of the company is typical of the increase in revenue.

The High-Tech LED Industry Research Institute (GLII) believes that the poor performance of the LED packaging business is the main reason for the decline in the performance of Wanrun Technology. LED light source device is the main source of revenue for Wanrun Technology, accounting for 73.09% of the company's main business income. The company's business revenue increased by 1.84% year-on-year, but its corresponding operating cost increased by 10.2%, product gross profit margin decreased by 5.75%; LED lighting business was the main performance highlight, the business revenue increased by 15.6%, Mao The interest rate reached 34.46%, which is the highest gross profit in all businesses and the only part that keeps growing.

Wanrun Technology's high-to-transfer profit distribution plan shows the company's management's confidence in the future growth of the company's business. GLII expects that the proportion of Wanrun Technology LED lighting products business will reach 30% in 2013; the overall performance will be improved compared with 2012, the basic earnings per share is expected to reach 0.5 yuan or more; and in terms of sales gross margin, the downward trend No change will happen, but the decline will slow down.

High-tech observation
GLII: The policy is positive, and the year of LED launch in 2013 GLII: The medical lighting market is huge, LED lighting products are stationed in hospitals. Shenzhen Municipal Government abolished the LED industry development plan introduced in 2009.


Market review
This week, the high-tech LED industry index closed at 1,084.70 points, down 5.35%, the Shanghai and Shenzhen 300 index fell 2.57%, and the high-tech LED index adjusted more than the broader market, in line with the possible adjustments suggested in this report last week.

This week, 25 LED key stocks fell, only one stock of sunshine lighting rose, with an average decline of -5.33%. The top three gainers: Sunshine Lighting (2.75%), Ruifeng Optoelectronics (-0.26%) and Wanrun Technology (-1.99%), the top three declines: Yuanfang Optoelectronics (-12.68%), Maoshuo Power Supply (-9.46%) ) and Liard (-8.32%).

Investment recommendation
Qinshang Optoelectronics (002638), Jufei Optoelectronics (300303), Ruifeng Optoelectronics (300241).

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