Leading LED small pitch display manufacturer Leyard, has seen continual growth in the industry as the company reaps benefits from transforming its LED plant into a wholly automated production line, according to an industry insider.

The company completed production expansion preparations, and estimates revenue from its orders will nearly double from RMB 550 million (US $88.62 million) to RMB 1.1 billion, and that gross margins will reach about 40%.

The same source believes small pitch LED display is in the early phases of replacing large LED panels on the market. Large LED panels have a market value of about RMB 8 billion. In 2014, Leyard, Absen Opto, and Unilumin shipment volumes reached less than 1 billion, indicating small pitch LED display market penetration was less than 12% on the market. Small pitch LED display market penetration rates will soar in 2015, and estimated to more than double from 12% to 25%.

With Leyard leading other Chinese LED manufacturers in the small pitch LED display market, small pitch LED displays have advanced from 2.5 mm to 0.9 mm. In terms of current small pitch LED TV market share, small pitch displays with a pitch of 1.6 mm and 1.9 mm have the greatest market share, while 1.2 mm pitch LEDs are still in the R&D phase.

According to a source in Leyard, the small pitch LED display market effect has expanded and LED media and advertisement companies Leafun and and Glux will be able to double revenue and net profits by 2015 to reach an estimated RMB 320 million.

Leyard announced its company restructure plan on Jan. 4, 2015, and has acquired 100% of Leafun and Glux shares for a combined RMB 890 million. After sealing the deal, Leyard has been expanding its business in sophisticated performances, equipment R&D, sales, and LED stage equipment rental. These businesses compliment Leyard’s LED display business, and has assisted it in extending downstream applications.

Earlier, the company horizontally restructured its LED small pitch display and LED lighting businesses on Nov. 15, 2013. The company has acquired 100% of Beijing Hulian Yida Science and Technology (北京互联亿) shares, which paved the company’s entry into the small pitch LED display market and public broadcasting. In the following year, Leyard acquired Shenzhen Jinda Lighting and successfully expanded its LED lighting business.

According to the same source, after Lyeard acquired Leafun and Glux, the company completed its “four driver” puzzle, and in the future its business will mostly revolve around small pitch LED TV, LED display, smart LED lighting and LED media.