Mulinsen's annual report net profit is expected to nearly triple! Absen achieves contract signing of 3 billion yuan

On the evening of January 16, Mulinsen released a performance forecast. The company expects the net profit attributable to shareholders of listed companies to be 1.10 billion to 1.200 billion yuan in 2021, an increase of 264.55%-297.7% over the same period last year, and the profit last year was 302 million yuan.

> Even with the highest value, Mulinsen’s fourth-quarter net profit was still the lowest in a single quarter last year.

From the perspective of growth rate, Mulinsen’s net profit increased by 35.91% year-on-year in the first three quarters of last year, and the annual growth rate increased to nearly three times. The reason for the surge in growth was the low base in the fourth quarter of last year. In the fourth quarter of 2020, Mulinsen lost 387 million yuan in a single quarter. Therefore, even if the profit in the fourth quarter of last year was not as good as the first three quarters, the full-year growth rate was still significantly improved.

As for the reasons for the performance growth, Mulinsen said that the LED industry's prosperity is recovering, downstream demand is improving, and the sales price and sales volume of the company's main products have increased. At the same time, for LEDVANCE, which had been lagging behind, Mulinsen said that during the reporting period, LEDVANCE achieved steady growth in profits through continuous product upgrades and integration of brands and channels.

LEDVANCE is one of the world's top two international general lighting brands and was once owned by Osram. At the beginning, Mulinsen expected to use LEDVANCE's overseas sales network to quickly increase its overseas market share and accelerate its overseas layout. However, the reality was very cruel.

In 2018, Mulinsen completed the acquisition of LEDVANCE. Although its revenue doubled, from 2018 to 2020, Mulinsen's net profits attributable to shareholders of the listed company after deductions were 214 million yuan, -95 million yuan and -586 million yuan respectively, with year-on-year growth rates of -59.29%, -144.31% and -518.42%.

There seems to be a turnaround in 2021, with Mulinsen's non-net profit also reaching 1.05 billion to 1.15 billion yuan.

In previous institutional research, Mulinsen Board Secretary Xiao Yansong said that through the "channel-heavy, asset-light" strategy, the company, on the one hand, strengthens overseas brand building and channel maintenance, and on the other hand, fully transfers overseas high-cost and low-efficiency procurement and manufacturing links to China, streamlining personnel and reducing costs.

"At present, the company has closed 17 of LEDVANCE's 18 overseas factories, leaving only one Russian factory, which has successfully completed LEDVANCE's restructuring and factory closure plan." Xiao Yansong said that after the closure of the factory, as costs and expenses continued to decline, the company's profitability continued to increase.

In terms of integration, Mulinsen gradually introduced the company's existing LED lighting packaging products into LEDVANCE's supply chain to achieve industrial chain layout coordination with LEDVANCE's light source business.

The domestic LED industry maintains a high level of prosperity, and Mulinsen’s performance this year is also guaranteed.

In a recent institutional survey, Xiao Yansong predicted that the packaging business will be full of orders this year and the production capacity utilization rate will remain at a high level; the company is planning the mass production and shipment of Mini LED products and hopes to become the company's new profit growth point in the future.

Mulinsen owns production bases such as Zhongshan Production Base in Guangdong, Ji'an Production Base in Jiangxi, Xinyu Production Base in Jiangxi, and Yiwu Production Base in Zhejiang. Xiao Yansong revealed that in the future, production capacity layout will also be based on downstream market demand and production and marketing planning arrangements.

The domestic LED industry has maintained a high level of prosperity since 2021. Company executives expect that orders for the packaging business will be full this year and production capacity utilization will remain at a high level; the company is actively planning the mass production and shipment of Mini LED products and looks forward to becoming the company's new profit growth point in the future. In the field of Mini LED, Mulinsen has developed a new Mini LED RGB display module manufacturing technology, including Mini LED electrode technology, anisotropic conductive solder technology, hot press reflow process technology and related supporting equipment, and has accumulated a number of matching invention technologies.

In addition, the company's Mini LED has entered the display field, and the backlight field has been connected with the business. In addition to deploying Mini LED business, Mulinsen also expands plant lighting, air purification and UVC deep ultraviolet disinfection businesses, and also deploys distributed light and storage integrated business. //

Absen’s 2021 performance forecast

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Absen (300389.SZ) stated on the investor interaction platform on January 12 that the company had disclosed the "2021 Annual Performance Forecast" on January 4, 2022. According to the performance forecast, the company expects the net profit attributable to shareholders of listed companies in 2021 to be approximately 23 million yuan to 31 million yuan, an increase from the same period last year. Growth rate is 132.3%~143.6%. The company has formed a relatively complete channel management system by deeply exploring the domestic market, increasing domestic channel expansion, and the domestic market has grown rapidly. In the overseas market, by investing in key strategic areas, actively carrying out online marketing, and supporting the expansion of local channels, the company has promoted the rapid recovery of overseas market business and achieved rapid growth of the company's overall business.

In 2021, the company will sign a total of approximately 3 billion yuan in contracts, an increase of 55% year-on-year in 2020 and an increase of 12% year-on-year in 2019. Among them, approximately 1.31 billion yuan was signed for overseas display screens, and approximately 1.51 billion yuan was signed for domestic display screens. As of December 31, 2021, the company's display orders on hand were approximately 910 million yuan. The company will disclose relevant announcements about the specific performance in 2021 later.