LED project prospects

ST Gan LED project prospects or overvalued
Prior to papermaking industry ST Gan ( 000576, closing price 7.21 yuan ) to the LED industry a step closer. Yesterday ( December 14th), the company said in a statement, the approval of its wholly-owned subsidiary of Guangdong Deli photoelectric Limited company in Jiangmen National Hi-Tech Industrial Development Zone to invest 835900000 yuan to build LED epitaxial film production project.
The company for the future of the LED business full of expectation. However, the market worried about LED, ST Gan for the profitability of the project too optimistic.
ST Gan for Guangdong Province Jiangmen City veteran of listed companies, the paper, biochemical products industry. In September this year group in, becoming its biggest shareholder.
ST Gan money newspaper shows, 2009, the company's business income is 486000000 yuan, while net profit is 12943700 yuan, but the business profit is 49969500 yuan, in 2010, the company's operating income fell to 390000000 yuan, net profit of 77212000 yuan. The first three quarters of this year, the company realized the business income 307000000 yuan, net profit attributable to parent shareholders - 41310000 yuan.
Pulp and paper business deficit of in successive years, obviously, ST sweet hope of change and existence. In fact, as early as in February this year, ST Gan was released and transformation set by photoelectric industry bulletin.
For LED projects in the future, ST Gan seemed full of confidence.
The company announcement said, to invest 835900000 yuan to build 20 units of MOCVD ( LED main production equipment ) device LED epitaxial film production line and supporting the chip production lines, project completed and put into production, will form an annual output of 960000 pieces of high brightness blue green LED epitaxial wafer and chip production capacity, can realize annual sales income 834000000 yuan.
Epitaxial chip production capacity was not fully released
" Daily economic news" reporter rough estimation, 20 sets of annual production capacity of 960000 pieces of equipment, means a device a month production capacity will reach 4000. High technology and online LED academy dean Zhang Xiaofei told" daily economic news" interview with reporters, because each month to the cleaning and maintenance, the actual production time is only about 25 days, such a device is a day production capacity will reach 160.
It is understood, now the mainstream MOCVD from 6 machine, 12 machine to the 49 machine, 160 means 49 for daily production of 3 furnace epitaxial chip.
The anonymity of the LED securities representative told the" daily economic news" reporter, their company equipment of the average daily production of 2.5 to 3 furnace.
Obviously, the 960000 film production capacity is in the best condition to calculate. According to reporter understanding, at present many domestic LED epitaxial chip business can only achieve full load capacity of 40% ~ 60%.
In the sales revenue, even in 960000, 834000000 yuan sales revenue corresponding to each for the price of 868.75 yuan. While the above listed securities representatives told reporters, and now the market average price in 400 yuan ~ 650 yuan. Zhang Xiaofei also confirmed to reporters, homebred LED epitaxial chip price at 500 yuan. To this, ST Gan Securities Department said, the above estimation data is provided by a professional institution to provide feasibility report to.
In fact, a more serious problem is, now epitaxial chip capacity has not been fully released, until the ST Gan LED project put into operation, or will face severe challenges