IPG’s 2021 net profit increased by 74% in the fourth quarter, China’s market share has been overtaken by Raycus Laser!

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On February 15, fiber laser giant IPG Photonics released its fourth-quarter 2021 report. The report shows that in 2021, IPG will achieve revenue of US$1.461 billion, a year-on-year increase of 22%; net profit of US$278 million, a year-on-year increase of 74%; gross profit margin of 47.7%, a year-on-year increase of 2.8 percentage points (44.9% last year).

Among them, revenue in the fourth quarter was US$365 million, an increase of 8% year-on-year; net profit was US$65 million, a year-on-year increase of 32%; gross profit margin was 45.5%, an increase of 1.9 percentage points over the fourth quarter of last year (gross profit margin in the fourth quarter of last year was 43.6%).

Sales of high-power lasers decline, sales of emerging products increase significantly

According to information released by IPG, the sales of the material processing market in the fourth quarter of 2021 reached $318 million (87% of total sales), an increase of 5% year-on-year, with the main growth drivers being welding, marking, 3D printing and Sales growth in cleaning applications, among others. Sales in other applications rose 41% year over year, driven by strengths in medical, advanced applications and telecommunications. Sales of emerging products (such as foil cutting, cleaning, 3D printing, drilling, medical, etc.) rose 57% year over year to $139 million, accounting for 38% of total revenue.

Notably, IPG’s past strong high-power continuous wave (CW) laser sales declined again this quarter. Despite strong revenue growth in the global welding segment and significant growth in cutting sales in North America and Europe, it was unable to compensate for the decline in cutting revenue in the Chinese market, resulting in year-on-year sales of high-power continuous wave (CW) lasers (above 1kW). down 19%. Among them, the sales of ultra-high-power lasers above 6kW accounted for 51% of high-power lasers.

Correspondingly, sales of medium power, pulsed and QCW lasers have improved significantly. Among them, the growth of medium-power laser business is mainly driven by 3D printing and semiconductor applications; pulsed lasers benefit from increased demand for foil cutting, marking, cleaning, etc., which also offset the weak demand in solar cell manufacturing applications; QCW lasers benefit from welding income growth. In addition, the IPG systems business also achieved solid growth, thanks to a substantial increase in sales of the handheld laser welding system LightWELD.

China’s market share has been overtaken, and the European and American markets have grown significantly

The Chinese market has always been the most important market for IPG, but in recent years, domestic challengers have created great pressure on IPG. In the fourth quarter of 2021, IPG’s sales in China fell by 20% year-on-year to US$113 million (about 722 million yuan at a 1:6.38 exchange rate), accounting for 31% of IPG’s fourth-quarter revenue, while domestic sales The revenue of Raycus Laser, a leading fiber laser company, was 793-993 million yuan in the fourth quarter of this year. Since Raycus has not disclosed the market share of domestic and foreign markets this year, it can only be estimated based on the annual report of last year (the domestic market revenue in 2020 will account for about 98% of the total revenue) – Raycus Laser’s domestic market in the fourth quarter of this year The revenue is about 777-973 million yuan (the estimated data is unaudited and is for reference only). Judging from the fourth quarter alone, IPG’s market share in China has been overtaken by Raycus!