Quarter low season don't light LED industry good

Recently, many signals show that the electronics industry has a high probability that the off-season is not weak. First, the semiconductor leader TSMC and the consumer electronics leader Hon Hai both exceeded expectations in last December and have a positive outlook for the first quarter, TSMC's order visibility in the first quarter is better than expected, and leading companies and research institutions are generally actively looking forward to this year's terminal demand; Secondly, prosperity indicators such as B/B value and memory price show an upward trend. Recently, many sub-industries such as PCB equipment have recovered their kinetic energy for expansion, the higher prosperity of the LED industry has made the chip and package price index rise sharply. In terms of Apple's industrial chain, last year was the first high and the second low, while this year is expected to be the first high and the second high. Apple's industrial chain will go better and better. Apple's confidence can be seen from its capital expenditure increase of 57; This year, Apple will bring innovations to more components. We can see from recent patents, including sapphire, wireless charging, liquid metal, 3D printing, and winding batteries. In terms of LED, since the fourth quarter of 2013, Major LED companies have also maintained good orders and started work. Chip prices have continued to be strong. Under the superposition of factors such as pre-holiday stocking and overseas customers' centralized orders, it is expected that the trend of the Spring Festival will continue. Looking forward to the future, LED lighting will penetrate beyond expectations under the combined effects of technological progress, cost reduction, policy subsidies and promotion by large factories. In addition, the recent landing of smart city projects will benefit the security sector. In the early stage, the security sector has been falling more because of the large number of fund positions, the worry about the problem of returning money at the end of the year, the lack of catalyst for the main leader, and the pressure of reduction and Grant. The valuation of the main leader has been adjusted back to an attractive position, haikang also clearly pointed out that the landing of some smart cities is accelerating. Recently, affected by the IPO of new shares, the electronic sector has fallen with the broader market, and Apple and LED strong stocks have a certain correction. However, China Merchants Securities believes that Apple, LED lighting and security are still the general direction of electronic layout in the new year, its research report suggests focusing on high-quality companies in sub-industries such as intelligent terminals, LED, security and micro-electroacoustic, connectors/structural parts, lithium batteries, cameras, FPC, etc.