LED industry boom determines industry giant profit increase?

We believe that this year's Q2 investment strategy can be carried out around a basic point and three micro-innovations. Take the LED industry as the basic point: we think that the LED industry that can pick up the smart phone is in the same volume and is still in the rapid penetration period. It is recommended to configure Foshan Lighting, sunshine lighting and Sanan Optoelectronics; Camera, wearable and living room strategies have great innovations in three fields: for the electronics industry, there are opportunities for changes, so crystal optoelectronics and Lei Bai technology in related fields are recommended. 1. After more than a quarter of intensive research, we are very sure about the prosperity of the LED industry: it is reflected in the high capacity utilization rate of the chip factory; Packaging plant capacity is tight; The lighting factory's pull strength and channel inventory digestion exceeded expectations. 2. LED has an investment value of more than 3 years. From the perspective of penetration cycle, we expect that LED will have high penetration in 2020, 14 years will enter the rapid penetration period, and the next 3 years will be the LED gold investment period. 3. The two heads have high added value. Both ends have high thresholds, chips are reflected in technology and capital, lighting is reflected in brands and channels, and leaders have scale advantages.