LED industry fully recovers industry chain company welcomes opportunities

The 2014 LED lighting era is coming. Huang Panpan, a researcher at Orient Securities, said that the LED industry's inflection point is upward, profitability is improving, and policy catalysis is accelerating. In 2014, the prosperity of the industry and confidence in expanding production will continue to pick up, and the growth rate of the industry is expected to resume high growth. Industry comprehensive recovery six implementation profit more aspects Information Display LED industry has in 2013 met the inflection point 2012 LED almost is of loss of the entire industry situation last year great change more than the company outgoing profit of good news, this shows that the strong demand for LED downstream lighting has been transmitted to the middle and upstream packaging and chip companies. According to don't completely Statistical as at March 19 A- SHARE 53 home LED concept stocks in a total of 43 companies 2013 annual report or performance Express which 31 House is ultra-six Enterprise last year profit. Huang Panpan pointed out that the recovery of the industry focuses on five aspects: first, the low price difference between LED and energy-saving lamps is nearly double; Second: the variety of 10 US dollars sweet point products has increased rapidly; Third, demand has entered a stage of highly elastic growth, and the sensitivity of demand to price has increased significantly; Fourth, the contribution ratio of LED lighting application output value will be equivalent to that of backlight, which is expected to reach more than 40; Fifth: The price drop in 2014 was relatively limited, with a single-quarter drop of less than 5. From the financial point of view, the profitability of the industry continues to improve, and the gross profit margin is expected to gradually stabilize. From the perspective of policy, the second wave of incandescent lamp prohibition peak in 2014 will accelerate the promotion of LED lighting related products. The profit transmission industry chain company's overweight investment industry recovery prospects are clear. A brokerage researcher pointed out that the order in which LED industry companies benefit is from downstream demand and then to the midstream of the industry, then there is the upstream chip field. In fact, from the perspective of the industrial chain, the market demand for lighting and other products has strengthened in the second half of last year, and related enterprises such as downstream lighting and application have basically made full profits. According to the relevant data of the annual report, the downstream profitability has been transmitted to the midstream packaging and upstream chip companies. In the overall context of the industry, a number of listed companies indicated that they will increase investment. Wanrun technology revealed in its 2013 annual report that the company will further explore the overseas lighting market in the United States, Canada, the European Union and other countries, and deeply explore and expand the domestic lighting market. At the same time, increase the investment in research and development expenditure, vigorously enrich the company's existing product series, and provide customers with diversified alternative options. The midstream packaging company Hongli Optoelectronics also said during the survey that the company's current LED packaging product production capacity is about 800KK/month. In 2014, according to the original expansion plan, and combined with market conditions to expand production capacity. The industry's mergers and acquisitions have a strong performance elasticity. The LED market will run through the whole year of 2014. Ping An Securities analyst Lin Zhaotian believes that in the context of lighting volume and rapid demand growth, many companies will usher in a double turning point of revenue and profit margins. Judging from the investigation of the industrial chain, many LED companies have the demand for mergers and acquisitions and refinancing this year. As the profit base of second-and third-tier LED enterprises is generally not high, the corresponding performance elasticity is very large. According to relevant statistics, there were more than ten mergers and acquisitions in the LED industry in 2013, involving 11 listed companies, including 8 packaging applications, it is mainly the expansion of product structure and product application fields, which involves the extension of industrial chain, mainly the further extension of packaging application fields to downstream applications or channels. In fact, as early as February 22, Zhongjing electronics also announced that it intends to use 2. 8. 6 billion acquired 100 equity of founder, an LED enterprise, and entered the LED lighting field across borders. The plan was popular in the market, and after the stock resumed trading, it received seven daily limit boards. On March 12, Foshan Lighting announced that the company plans to acquire an LED enterprise named Suzhou Mengtai Libao Optoelectronics Co. , Ltd. , which focuses on the development and production of LED commercial lighting products and engineering products, although the company was still losing money last year due to insufficient production management and capacity. It is worth mentioning that some key companies in the LED industry have received special attention from institutions since this year. According to incomplete statistics, in the past two months, hundreds of institutions have conducted nearly 30 investigations on more than 10 enterprises in the industry, including Foshan Lighting, Alto electronics, Guoxing Optoelectronics, Liad, Lianjian Optoelectronics, Hongli optoelectronics and Huacan Optoelectronics. Mr. Chen, an investment director of a private equity fund in Shanghai, is very optimistic about the LED industry. He investigated ten LED listed companies at the beginning of the year and made super-matching for key companies such as Huacan optoelectronics and Guoxing Optoelectronics according to the research results. The LED industry should be fully optimistic in the first half of the year. I will hold the position until the semi-annual report is announced. In the second half of the year, it depends on the specific conditions of the market and decides whether to increase or decrease the configuration. Mr. Chen said. However, at present, after the previous speculation, the relevant stocks of the LED concept have far exceeded the market index of the same period, not the time of intervention, but waiting for them to fall back about 20, it is a good time to intervene. Mr. Chen said.