Five major trends in merger, purchase and integration of LED lighting industry in 2015

As of November 2014, there were more than 80 concept stocks related to LED lighting industry. Among them, there are 22 enterprises listed through LED industry chain related concepts, mainly LED chips, packaging, display screens, outdoor lighting, supporting materials and supporting equipment. Merger, purchase and integration is an inevitable process in the gradual maturity of LED lighting industry. Looking forward to 2015, the high-tech LED Industry Research Institute believes that the merger, purchase and integration of LED industry chain will show the following five trends: Trend 1: The overall merger amount will exceed 20 billion yuan. mergers and acquisitions with a scale of more than 0. 5 billion yuan will increase. Trend 2: LED indoor lighting mergers and acquisitions will break through and become an important protagonist. In the industry integration, the absence of important links indicates that the industry has not yet entered the climax of integration, and the key period of integration in 2015 has begun. Trend 3: the upstream Sapphire and chip industry merger and acquisition deadlock will break through. At present, there are almost no cases of integration of LED upstream Sapphire and chip industry chain, and a few cases are not strong or complementary. It is expected that there will be successful mergers and acquisitions in sapphire and chip links in 2015. Trend 4: traditional lighting enterprises will make efforts to merge and purchase. Most traditional lighting enterprises have advantages in domestic channels and weak export links. The international brand awareness is basically zero, but there is still much room for development in export. Trend 5: mergers will go international. Overseas merger cases will increase. As the intention of excellent domestic LED industry chain enterprises to go abroad increases, the integration of overseas LED lighting industry chain enterprises and channels will be put on the agenda. Looking back on 2014, the merger and purchase events in the LED lighting industry surged in 2014, with more than 100 related merger and purchase cases and a merger and purchase amount of more than 10 billion yuan. Among them, there are more than 20 mergers and acquisitions of listed companies in the LED industry chain, and the amount of mergers and acquisitions exceeds 6 billion. In the merger of listed companies, Feile Audio acquired a 100 stake in shen'an group. 0. 9 billion yuan, Tsinghua Tongfang acquired Zhen Mingli 51. 6 shares of 0. 9 billion Hong Kong dollars, Changfang Optoelectronics acquired Kang Mingsheng 60 shares 5. 2. 8 billion yuan, the top three. Looking at the relevant M & A cases of listed enterprises as a whole, there are four characteristics as follows: first, the M & A of listed enterprises in LED industry chain in 2014 is active in cross-border M & A and complementary M & A. Second, the proportion of horizontal integration of the main business of the enterprise is very small. The cases of mergers and acquisitions of horizontal expansion of the main business are only Lianjian Optoelectronics acquired Yi Shida, Hongli Optoelectronics acquired smade, and Zhou Ming technology acquired Lanpu technology. Third, indoor lighting enterprises are absent from the grand feast of mergers and acquisitions. As an important engine part of the development of LED industry, indoor lighting enterprises have suffered cold in the tide of mergers and acquisitions in 2014. High-tech LED Industry Research Institute believes that it is mainly because 1) Most of the LED Indoor lighting enterprises with terminal sales channels are transformed from traditional lighting enterprises, and the scale enterprises of pure LED lighting are mainly export-oriented. these two kinds of enterprises are more difficult to control for the current LED listed companies. 2) Excellent LED indoor lighting enterprises are making listing plans, and their intention to be merged is not strong, and the cost of mergers and acquisitions is also very high. Therefore, even if there are several LED indoor lighting merger and purchase cases still in the early contact negotiation process, there are no successful merger and acquisition cases at present. Fourth, the integration of traditional lighting enterprises and LED lighting enterprises is not obvious. This is related to the fact that the LED lighting industry is in a golden development period and the horizontal integration of the industry is in the early stage. For traditional lighting enterprises, there are few domestic traditional lighting listed enterprises. At present, there are only a few enterprises such as NVC, sunshine, Shelley, fozhao and Yaming. however, TCL and Meimei's lighting account for a small proportion in the group, and it is difficult to operate on a large scale. For international enterprises, it is difficult for domestic LED lighting enterprises to enter the eyes of international enterprises. For LED lighting enterprises, there is currently no listed enterprise focusing on LED indoor lighting. Regarding the merger and purchase related to LED industry chain, Zhang Hongbiao, research director of high-tech LED Industry Research Institute, said that with the intensification of competition in LED lighting industry chain, enterprises are facing greater competitive pressure and survival pressure. LED industry has only 2-3 years of prime time. Excellent Enterprises in the industrial chain need to change their concepts. It is also a very good way to obtain funds through mergers and acquisitions and realize indirect listing. Most enterprises with financial strength will develop and grow more effectively through mergers and acquisitions, not necessarily through their own expansion of production and construction channels. According to the current trend of mergers and acquisitions in the industry, it is a high probability event that there will be 10 billion-level enterprises in three years. The vision of domestic enterprises needs internationalization more. International enterprises such as Philips, Osram, GE and CREE also regard mergers and acquisitions as an important means to continuously develop and grow. In the process of domestic enterprises moving towards the international level, whether the merger and acquisition strategy can be successfully applied will be the key to the success of its internationalization.