LED industry rebound trend officially launched

The LED chip index is slightly stronger than the broader market, and the packaging index is weaker than the broader market: Taiwan February LED chip index (ChipLEDX)An increase of 5. 52, February LED Package Index (PackageLEDX)An increase of 0. 46; During the same period, Taiwan's Electronic Component Index rose by 5. 28, Taiwan's weighted index rose 4. 54. Taiwan's industrial chain February chip companies rose slightly month on month, while packaging companies fell month on month: The 8 Taiwan LED chip companies we tracked had a total revenue of 37. 5% in February. 2. 9 billion New Taiwan dollars, up 0. 49. The 9 Taiwan LED packaging companies we tracked had a total revenue of 46. In February. 1. 4 billion new Taiwan dollars, down 13. 52. Since last July, the revenue of packaging manufacturers has shown a gradual downward trend. In February, chip companies and packaging companies changed differently from the previous month. Apart from the short-term inventory impact, the packaging link had a lower entry threshold and more intense competition, so the price fell faster than the chip link. In addition, the growth of packaging in the mainland has also caused the loss of part of Taiwanese companies, which is the main reason why Taiwanese packaging companies have grown worse than chip companies in the past six months. Industry Trends and comments: The lamp change tide will be ushered in, and the LED lighting market Gate will be opened; The price of LED bulbs fell steadily in February, and the improvement of cost performance is the key to the future market; The sapphire market continues to rise in price, and manufacturers are actively expanding production. Industry investment strategy: February is still in the off-season of the first quarter. The revenue of LED packaging enterprises has seen a double-digit decline compared with the previous quarter. Chip enterprises have risen slightly. With the advent of March, LED enterprises will gradually step out of the off-season, the performance in the coming months is expected to pick up. We maintain the LED industry recommended investment rating, recommend Liad, San'an Optoelectronics, sunshine lighting, Hongli Optoelectronics. We have recently published Liad's in-depth report 'big screen display market disruptors, great potential to enter the interior'. We are optimistic about the rapid penetration of the company's small-pitch products in the large screen splicing market and the company's advantages, the company will also enter the indoor large-screen TV market. We have recently published an in-depth report on sunshine lighting, 'Determination of LED's high growth, layout of e-commerce is worth looking forward to'. The company is a leading LED company in mainland China and supplies Philips, Osram and other manufacturers with stable profitability, will fully benefit from the growth of LED lighting industry. Hongli Optoelectronics LED will usher in better growth in the field of automotive lighting in the next few years. San'an Optoelectronics currently ranks first in the mainland in the upstream chip field, and is also in a position in technology. It is expected to further cooperate with other downstream application companies to expand the application market. Industry Risk: LED lighting application growth is lower than expected; The breakthrough of domestic enterprises in core technology and core technology may fall behind expectations.