Simple comparison between IPG and Raycus—Tony

Simple comparison between IPG Optoelectronics and Raycus Laser

Financial

Concerned about Raycus Laser is to see how the company, which claims to break the monopoly of IPG’s high-power fiber lasers, poses a threat to IPG.

Raycus Laser just announced the semi-annual report. In the first half of 2018, the company realized operating income of 751.04 million yuan, operating profit of 306,464,200 yuan, total profit of 305,832,200 yuan, and net profit attributable to shareholders of listed company of 258,905,100 yuan. Respectively, increased compared with the same period of last year. 69.45%, 85.02%, 84.64%, 83.07%. The growth is quite strong.

I am concerned about the situation of its high-power lasers, but unfortunately, the company counts the proportion of sales revenue by laser type rather than power range. Regarding high-power products, only «the sales of high-power products are growing rapidly while the sales of low- and medium-power products are growing steadily.» Also, «the company continues to develop and improve technology. And higher-power continuous fiber laser products are Customers gradually accepted that the key products of the company’s continuous lasers gradually shifted to higher-power products. Achieving a significant increase in customer and sales volume at 3300W.

The sales volume of single products was twice that of last year; 6000W achieved mass sales.” But the overall height What is the sales of power lasers and how fast is the growth rate? unknown. The technical breakthrough and domestic substitution of high-power lasers are the highlights of many research reports on Raycus Laser. If I am the head of the company, I will definitely highlight the sales and growth of high-power laser products.

Sales

IPG’s sales in the second quarter of 2018 introduced high-power lasers as follows: In the Q2 quarter of 2018, high-power laser sales were 266 million US dollars, accounting for 64% of total sales, up 20% year-on-year. Among them, products with a power of 6kw and above accounted for 40% of total sales, an increase of 50%.

Driven by demand in the Chinese market, sales of 1,1.5,2kw rack-mounted fiber lasers increased by 50%. In addition, shipment growth was even higher. This means that the price of the product has dropped. Therefore, in these power ranges, IPG’s market share may not necessarily be taken away by domestic manufacturers such as Raycus Laser. However, it reduced in price under competition. The impact is still there.
Valentin, CEO of IPG, said that customers are upgrading from 8 to 10km in cutting applications. And leading edge OEMs are starting to buy 12~15kw products. This power range of lasers is currently only available from IPG.