Published :9/2/2020 2:17:35 AM
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If the news is true, what pressure will OFILM be facing in the future?
It is reported that OFILM’s core business is the R&D and sales of camera modules. In 2019, the company shipped 660 million camera modules and achieved operating income of 30.607 billion yuan, accounting for 59% of the company’s total revenue, a year-on-year increase of 25.31%. Comprehensive gross profit margin Is 8.83%.
According to foreign media sources, "Supplied by Yecheng GIS and Chenhong TPK", Yecheng GIS is a Taiwanese touch factory affiliated to Foxconn; Chenhong TPK is a touch factory in Xiamen, and Ou Feiguang is not the main business of "touch products" The “line” forms direct competition instead of the main business “camera module”.
Indeed, with the increasing requirements for touch devices in Apple and Android digital products, OFILM's touch product line has been relatively backward.
In 2019, OFILM's gross profit margin was 9.87%, a year-on-year decline of 2.45 percentage points, the lowest since its listing. This decline has hindered touch products. With technological iterations and intensified industry market competition, the company’s on-cell touch display product market share and prices continued to decline, which was the main reason for the company’s overall gross profit margin decline during the reporting period; camera module products have become increasingly competitive due to the overall market competition. Sales prices were under pressure, and gross profit margins also declined slightly.
Regarding the proportion of Apple’s customer’s revenue, Ou Feiguang responded on the investor shareholder platform: The company has established long-term in-depth cooperation with many mobile phone brand customers, and the customer structure is reasonable, covering mainstream smartphone brands at home and abroad, and there is no single customer. Dependence (August 2020); Apple's business accounted for a low proportion (November 2018).
It is reported that OFILM mainly provides FC (FlipChip, also known as flip chip) process-related products for Apple.
Figure: FC process schematic
Due to the relatively high barriers to entry for Apple's camera module supply, the competition for Apple's camera module orders in recent years has mainly focused on LG-Innotek, Foxconn (Sharp), OFILM and Cowell Electronics.
As of the end of 2018, OFILM's major customer module production capacity was 14kk/month, and the company has also successfully entered the supply chain of Apple's iPhone11 rear dual camera module.
