LED lighting enters spontaneous demand outbreak period

Last week, the Shenwan electronics industry index rose by 5. 42, the Shanghai composite index rose by 0. 25. Electronics continues to outperform the market, which is in line with our judgment on the fundamentals of the industry. Under the background that the smart terminal boom continues to improve, as long as the industry growth trend remains unchanged and the relevant targets of the supply chain are firmly held, therefore, our strategy has been firmly advising investors to hold smart terminals and other supply LED lighting to become a hot spot. Last week, the Shenwan electronics industry index rose by 5. 5%. 42, the Shanghai composite index rose by 0. 25. Electronics continues to outperform the market, which is in line with our judgment on the fundamentals of the industry. Under the background that the smart terminal boom continues to improve, as long as the industry growth trend remains unchanged and the relevant targets of the supply chain are firmly held, therefore, our strategy has been firmly advising investors to hold supply chain electronic stocks such as smart terminals, even though some companies have high short-term valuations. In addition, the LED plate that we continue to recommend this year has recently become a hot spot in the market, mainly because LED lighting is at the starting point of spontaneous demand explosion, the landmark event that caused the spontaneous demand explosion is that LED lighting brand manufacturers such as CREE Philips have launched low-cost bulbs that break the sweet point of lighting demand. From the actual demand situation, we tracked that the shipments of some companies in Taiwan's LED lighting supply chain in the first half of the year have reached the whole year of last year, which means that the introduction of low-cost bulbs by brand manufacturers has indeed promoted the demand of the industry, we are still optimistic that LED lighting will enter a real growth cycle. Investment strategy outlook, maintain investment proposals for holding electronic stocks. We continue to be optimistic about LED backlight and lighting, optical lens, touch and other sub-sectors, and recommend active attention. In addition, we believe that the flat panel display industry is facing the development opportunity of import substitution, and the domestic panel industry and related raw material suppliers have an optimistic development prospect in the next few years, panel companies such as BOE and TCL will usher in a period of good profitability in history. Point of View, in the short term, the valuation of electronic stocks is on the high side, and the market generally expects that electronic stocks may undergo adjustment in the short term. However, there is little room for downward adjustment, mainly because of the strong demand in the downstream of intelligent terminals, the prosperity of the supply chain is high, and the high growth of Related Companies is a foregone conclusion. At the same time, with the improvement of the manufacturing capacity of Chinese electronics companies, there is room for improvement in the future market share, which ensures that related companies maintain a high valuation level. Market current main tracking dian zi gu if short-term adjustment behind can High. Risk Warning: Short-term valuation pressure