LED lighting penetration rate rises

Us led Lighting Factory Cree recently announced last quarter earnings, quarterly revenue of 4. 1. 5 billion US dollars, an annual increase of 20, a quarterly increase of 6, after-tax net profit of 35. 7 million US dollars, an annual increase of 75, earnings per share of 0. US $29, strong operation to rewrite a single-season high, mainly driven by LED lamps and bulbs. Not only did the operation of major international factories climb, it is understood that LED factories in Taiwan also had a good industry situation. The demand for LED lighting in the fourth quarter of last year was unexpected, and customers actively placed orders to pull goods, the first year of lighting that LED factory has been looking forward to for a long time has finally arrived. Research institutions have assessed that the lighting penetration rate has exceeded 10 threshold last year. According to the historical track of LED backlight penetration rate, it took 4 years for backlight to cross 10, after that, it took only two years to rapidly jump to a penetration rate of nearly 100. It is expected that in the next two years, LED lighting will replicate the development process of backlight, rapidly enlarge and grow, and LED factories will shine brilliantly. The key to driving LED lighting amplification lies in the rapid decline in prices. Last year, the price of LED bulbs plummeted by, and the price fell to a sweet point is a key point for the market to enter the milestone of the first year of lighting. It is expected that manufacturers will be under the pressure of price competition this year, cost control will become the primary goal. It is no wonder that all manufacturers have tried their best to control costs and invest in high value-added products. In addition to price-driven, LED life and luminous efficiency are better than traditional lighting, with a service life of more than 40 thousand hours, which is three times that of traditional energy-saving lamps. The energy-saving effect is even more attractive to people to buy and replace. According to the factory's actual experience in replacing LED lighting devices, the electricity price has dropped by about 55. According to this electricity saving effect, the replacement cost can be earned within one and a half years after replacing LED lights, what's more, LED brand factories generally provide a 2-year warranty at present, which has prompted LED to grow rapidly in the commercial lighting market. The industry evaluates that the LED lighting market will have a compound annual growth rate of about 40 in the next five years. Under the promotion of government subsidies, the governments of Europe, the United States and mainland China will subsidize consumer purchases, manufacturers expect the scale of LED lighting to be more than 50 times of the output value of mobile phone applications, even up to 100 times, far higher than the scale of backlight applications by 3 times, therefore, some manufacturers have entered the field of lamp design and environmental light source. Under the enlargement of the market size, investors need to observe the growth of the company's turnover, and pay more attention to whether the gross profit margin can be stable or even rising. Otherwise, the company may earn revenue but lose interest rates. Since the price competition pressure of manufacturers is still fierce this year, the improvement of gross profit margin and product portfolio optimization is the real effort.