NATIONSTAR(SZ:002449) Xin Lang Cai Jing·2025-11-07 11:55Core Viewpoint - The company, Foshan Nationstar Optoelectronics Co., Ltd., is experiencing a continuous decline in revenue and net profit from 2022 to 2024, primarily due to intensified competition in the LED packaging market, declining revenue from traditional products, and increased operating expenses [1][2]. Financial Performance - Revenue for the years 2022 to 2025 (up to September) is reported as follows: 3.58 billion, 3.54 billion, 3.47 billion, and 1.68 billion yuan, respectively. Net profit for the same period is 121 million, 86 million, 52 million, and 25 million yuan, indicating a downward trend [2]. - The decline in performance is attributed to reduced income from traditional LED packaging and components, low gross margins in trade business, and rising R&D and management expenses [2]. Business Segment Performance - The LED packaging and components segment, which accounts for over 74% of revenue, saw a decrease in income from 2.608 billion to 2.508 billion yuan from 2022 to 2024, with a gross margin maintained between 16% and 17% [3]. - Revenue from small-pitch products dropped significantly from 451 million to 141 million yuan, with a consistently negative gross margin. The gross margin for TOP white light products is only 0.51%, impacted by market competition and weak downstream demand [3]. - The trade and application products segment, managed by a subsidiary, reported a low gross margin of 0.14% to 0.75%, contributing minimally to profits [3]. - Integrated circuit packaging and testing showed fluctuating gross margins, with a negative margin of -0.25% in 2024, recovering to 7.91% in the first nine months of 2025, influenced by industry conditions [3]. - The external and chip products segment reported a negative gross margin of -28.15% in 2024 due to industry overcapacity and the company's small business scale [3]. Accounts Receivable and Inventory Management - As of the end of 2024, accounts receivable stood at 753 million yuan, representing 21.68% of revenue, an increase from 15.28% in 2022. The aging of accounts receivable is primarily within one year (98.55%), with a 100% collection rate from the top five customers [4]. - Inventory value at the end of 2024 was 916 million yuan, with a provision for inventory impairment of 102 million yuan, resulting in a provision rate of 10.01%. The company reports normal inventory turnover and sufficient orders on hand [4]. Fundraising Projects - The company plans to raise 981 million yuan to invest in projects focused on Mini/Micro LED display modules, optoelectronic sensors, and intelligent vehicle-mounted devices. These products are expected to have high added value, with projected gross margins of 15.98% and 18.67% for Mini LED backlight modules and vehicle-mounted devices, respectively [5]. - The company anticipates that the decline in traditional product revenue will be offset by the growth of emerging businesses, and with the release of capacity at the Geely Industrial Park, the expense ratio is expected to decrease. The fundraising projects are projected to add an annual net profit of 123 million yuan upon reaching full production [5].