LED industry boom improves and maintains rapid growth

The prosperity of the industry continues to improve. Judging from the monthly data of Taiwan's LED industry, since July 2013, the monthly year-on-year growth rate of the chip and packaging industry has continued to increase, reaching 26 in January 2014 and 26 in February respectively. 3, 46. 1 and 10. 7, 25. 9. Although the March data have not yet been fully released, judging from the March data of several companies that have been released, the industry economy continues to improve, with the March revenue of chip leader crystal power increasing by year on year. 3, an increase of 19. 5, continue to maintain rapid growth. Under the background that the LED industry as a whole benefits from the outbreak of lighting demand, 2013 ~ In 2015, the penetration rate continued to increase rapidly. It is expected that LED lighting will increase by 90 and the quantity penetration rate will reach 20. 5% in 2014. In the Chinese market, we estimate 2014 ~ The growth rate in 2015 was 65 and 43. With the gradual formation of the market's expectation for the growth of the industry, we believe that the follow-up LED investment will shift from digging the bottom to looking for real growth beyond the industry. High-quality companies such as San'an Optoelectronics, it has obvious advantages in scale and cost. With the gradual production of new production capacity, the company is expected to further consolidate its market position, steadily increase its market share and achieve growth beyond the industry. For the LED lighting industry, the high channel cost has always been an important reason for the high terminal price. This also means that e-commerce mode has great significance and influence on LED lighting industry. We believe that Zhou Ming technology and sunshine lighting will continue to invest in the creation of e-commerce brands and channels. With the help of O2O to reduce channel costs, the price of end products will be effectively reduced, further stimulating the outbreak of market demand. Contract energy management (EMC) The model is gradually rolled out, paying attention to the possible intervention opportunities of listed companies. In 2014, local governments will continue energy conservation and emission reduction policies. LED lighting will be an important way to realize it. The contract energy management mode promoted by capital will be further rolled out, it will also become an important way for China's LED industry to benefit. Listed companies have the advantages of strong capital strength and low capital cost. Many companies are actively involved and have become an important way for local governments to support the development of local industries. It is recommended to focus on San'an Optoelectronics, zhouming technology, sunshine lighting, Ruifeng Optoelectronics, Hongli optoelectronics, and Foshan Lighting. Sanan Optoelectronics is becoming a competitive chip company with strong strategic planning and execution, and has the potential to extend downstream Lighting Applications and Compound Semiconductors. The company has newly adjusted its investment plan, A new industrial base of 200 machines will be built in Xiamen to further consolidate the company's position; Zhou Ming technology is a step in the development of lighting business in emerging internet channels and will soon be implemented; The outstanding lighting manufacturing capacity of sunshine lighting LED will continue to grow steadily; Ruifeng optoelectronics and Hongli optoelectronics have strong demand, and the proportion of lighting packaging business is high; Foshan Lighting has the advantage of low cost manufacturing. Analysis of Key Companies in LED industry Liad: We recently participated in the research of Liad. The small-pitch LED display screen independently developed by the company has obvious advantages over traditional products such as DLP display screen. The small-pitch LED display screen is expected to gradually replace the traditional DLP display screen. The company has a first-mover advantage in the field of small-pitch LED display. It is better than its competitors in terms of technology and market development. It has completed a large number of projects of domestic and foreign governments and well-known enterprises and institutions, in the future, it is expected to fully enjoy the alternative growth of small spacing. At the same time, we judge that after the acquisition of Jinda lighting, the company is expected to continue to expand its growth strategy, extend the industrial chain layout and cut into new markets through industrial mergers and acquisitions to meet its own growth needs. The first quarter is the traditional off-season. We expect the second quarter to be the beginning of the high growth of the company's small-pitch TV orders and shipments. We expect the company to achieve 60 ~ in 2014 ~ 90 net profit growth. We strongly recommend that investors pay close attention to the company's small-pitch product volume and expansion progress. Small-pitch led TV is a big driving force for the company's performance growth. Compared with traditional DLP display screen, it has the advantages of convenient maintenance, seamless splicing, energy saving, long service life, high brightness and adjustment. The company 2013 Small-pitch led TV orders 3. 0. 3 billion, the market share is about 70. Hongli Optoelectronics: in terms of industry prosperity, LED packaging and application industry showed good development momentum in 2014. On the one hand, as the prices of LED packaging and application products decline at an average annual rate of about 20, the demand for LED will show a rapid growth trend in the next three years; On the other hand, after 2012 ~ With the industry competition and demand fluctuation in 2013, the current industry competition pattern tends to be stable and the enterprise behavior tends to be rational. In terms of LED packaging, the company mainly focuses on LED lighting products and seeks further expansion in the backlight field. It will further expand its production capacity according to the market situation; In the aspect of LED automobile signal lighting, it will further strengthen the development of domestic and foreign markets. At the current stage, domestic automobile brands are the main breakthrough direction, and the business is progressing well; In terms of LED general lighting business, domestic engineering companies are the main ones, which will further develop foreign emerging markets; In terms of contract energy management, it will be combined with Ledia's engineering channels on the premise of ensuring the safety of the payment, so as to expand the company's market share.