The LED industry's upward turning point is established. The overall increase is considerable

2014 LED (Light emitting diode) The industry continues to triumph. Whether it is Philips, Osram and other international first-line lighting giants, or LED industry chain enterprises in South Korea, Taiwan and other places, they are optimistic about the LED lighting market and continue to increase investment. The organization predicts that the output value of China's LED lighting industry will increase by 180 billion to yuan in 2014. Can the prosperity of the LED electronics industry continue to rise in the future? How should investors grasp the investment opportunities of LED industry chain? Huang Panpan, a senior analyst of new energy electronics at Orient Securities, said that 2014 will be a big era of LED lighting, and the overall industry turning point will rise. LED concept stocks in the-share market have seen a considerable increase, however, some stocks in the market are still active. At the same time, Huang Panpan pointed out that with the gradual improvement of supply and demand in 2014, the increase in industry concentration will be an inevitable trend. Listed companies in the LED industry have successively announced their 2013 annual reports. According to statistics, in 2013, the production and sales of the entire LED industry were heavy, but the performance was divided: upstream and downstream enterprises fell into the dilemma of increasing income without increasing profits, and the profits of the middle-stream packaging enterprises also improved while their income increased. Huang Panpan expects that the whole industrial chain will improve in 2014, and the benefits will be obvious in the upstream, midstream and downstream. However, from the perspective of investment, considering the base, elasticity, market value and other issues, Huang Panpan believes that the companies in the middle and lower reaches are more prominent due to their small market value, high flexibility and inflection points. Huang Panpan summarized the development trend of LED industry in the past few years :(1) 2008 ~ In 2010, the backlight of LED applications, small and medium-sized netbooks, notebooks and other products broke out in an all-round way, and the economy went up. The output value of the LED industry increased rapidly, and the demand for LED products was in short supply. Although it was impacted by the economic environment at that time, the LED industry was full of confidence and formed a tide of investment and expansion. All walks of life joined the team of LED industry expansion; (2) 2010 ~ In 2011, the growth rate of the industry reached its peak and the economy gradually declined. At that time, the backlighting of small and medium-sized notebooks reached full penetration, and the application of TV backlight gradually rose, but the penetration ratio was still relatively small, resulting in the downward utilization rate of production capacity and the decline in the growth rate of the industry; (3) 2011 ~ In 2013, the production capacity was reduced, the TV backlight was fully penetrated, and the lighting application gradually blossomed. At this stage, with the rapid release of production capacity, serious imbalance between supply and demand, accelerated price decline, industrial capital expansion stopped or postponed, more and more manufacturers chose to leave the market, accelerated elimination and integration, and gradually digested production capacity. Regarding the industry prospect this year, Huang Panpan said that 2014 will be a new beginning for LED lighting, with the industry turning point upward and profits improving. The key points are as follows: 1. The low price difference between LED and energy-saving lamp is nearly double; Second, the variety of 10 US dollars sweet point products has increased rapidly; Third, demand has entered a stage of high-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. The price decline in May and 2014 is relatively limited, with a single quarter decline of less than 5. From the perspective of policy, the second wave of incandescent lamp prohibition peak in 2014 will accelerate the promotion of LED lighting related products. In general, with the rapid growth of LED lighting demand and the process of de-production, the industry is healthier, the market concentration is gradually increasing, and the price is relatively stable. In the secondary market, Huang Panpan believes that although the performance of LED concept stocks in the-share market is very active, many stocks have not been small in the early stage, but from the perspective of investment, considering emotional factors and relative comparative advantages, some stocks still have room to rise.