Leybold Tech touch screen capacity expansion growth comes from innovation

Laibao Hi-Tech achieved revenue of 1.146 billion yuan in 2010, an increase of 80.17% year-on-year. The operating profit was 526 million yuan, a year-on-year increase of 138.95%. The net profit was 451 million yuan, an increase of 155.35% over the same period of last year.

The main business gross profit rate was 55.08%, an increase of 11.94 percentage points year-on-year. With the volume of touch screen products, the comprehensive gross profit rate in the fourth quarter reached 58.88%, which was a 4.72% increase from the previous quarter.

Capacitance touch screen equipment operating rate to maintain more than 95%. The production capacity of small and medium-sized touch-screen projects has been expanded to 60,000 pieces/month; the technological transformation project was put into operation in the same year and reached production in advance. The revenue for the 10 years was 175 million yuan.

The large-size capacitive touch screen project and its capacity expansion project, some of the imported equipment to the factory and installation and commissioning, progress in line with the plan requirements. Demand for downstream products is strong, DisplaySearch expects that in 2011 the global tablet shipments will reach 55.7 million units, an increase of nearly 2 times year-on-year; shipments will reach 172.4 million units by 2014, an increase of more than two times over 2011.

The TFT-LCD empty-box production line successfully reached and exceeded the design capacity, and the annual operating rate of equipment was over 85%.

The operating rate of production facilities for ITO and CF is above 90%. ITO products are mainly located in high-end products with high added value; the market for CF products is mature and prices will fluctuate.

Based on the raw material stocking cycle and equipment arrival cycle, we judge that the Japanese earthquake has a direct impact on the company. However, the overall impact of the earthquake on the global electronic consumer goods industry chain cannot be accurately estimated.

Leybold Tech’s large-size touchscreen production capacity is expanding, and R&D accumulation will promote the company’s relatively favorable position in the field of new materials.

It is expected that sales revenue of LEYBOLD Hi-Tech in 2011-2013 will be 1.750 billion yuan, 2.623 billion yuan and 3.339 billion yuan respectively; net profit will be 755 million yuan, 1.158 billion yuan and 1.426 billion yuan respectively.

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