The trend of LED industry is expected to remain positive for relevant LED Enterprises

China's LED industry is expanding steadily, and the structural differentiation within the industry is increasingly obvious. China has initially formed a relatively complete industrial chain including the production of LED epitaxial wafers, the preparation of LED chips, the packaging of LED chips and the application of LED products. China's LED industry is expanding steadily, and the structural differentiation within the industry is increasingly obvious. China has initially formed a relatively complete industrial chain including the production of LED epitaxial wafers, the preparation of LED chips, the packaging of LED chips and the application of LED products. First, the structural differentiation within the industry is obvious, and the growth of LED industry market scale is slowing down. It is expected that the future trend will remain upward. Within the scope, the number of enterprises participating in each link of the LED industry chain is pyramid-shaped. 2016 LED industry market scale up to 699. 6 billion yuan is 2015 growth 8. 6. It is a low growth rate in 4 years and is expected to continue to decline in the next few years, but the overall upward trend remains unchanged. Although the growth rate of LED market scale was not high in 2016, the internal changes of the whole industry were greatly adjusted, and the prices of products in downstream lighting applications continued to fall, but the upstream chips and packaging links had a high degree of prosperity. China's LED industry is expanding steadily, and the structural differentiation within the industry is increasingly obvious. China has initially formed a relatively complete industrial chain including the production of LED epitaxial wafers, the preparation of LED chips, the packaging of LED chips and the application of LED products. With the improvement of the supply and demand pattern in the upstream chip field, the overall supply of chips exceeds the demand; The market scale of the midstream packaging field continues to expand; The proportion of common applications in downstream applications exceeds 40%, the growth rate of traditional applications is slowing down, and emerging applications are continuously developing. In the future, the prosperity of LED industry is expected to continue to improve, and the structural differentiation within the industry is becoming more and more obvious. Second, the development of the downstream emerging application industry, the technical threshold of the upstream LED chip field is relatively high, and the listed companies in the upstream chip field in China mainly include Sanan Optoelectronics, Dehao Runda, Aoyang Shunchang, etc; The main packaging fields of the middle reaches of the lamp beads are Dongshan Precision, zhaochi shares, mulinsen, Hongli Zhihui, etc; Downstream applications mainly include Opal lighting, Liad, Zhou Ming technology, etc. Generally speaking, the listed companies in China's LED industry are mainly concentrated in the middle reaches of packaging and downstream application fields. Industry leaders continue to benefit from the fierce market environment and the downstream emerging application industries are developing. With the improvement of the supply and demand pattern in the upstream chip field, the overall supply of chips exceeds the demand; The market scale of the midstream packaging field continues to expand; The proportion of common applications in downstream applications exceeds 40%, the growth rate of traditional applications is slowing down, and emerging applications are continuously developing. In the future, the prosperity of LED industry is expected to continue to improve, and the structural differentiation within the industry is becoming more and more obvious. From the revenue, net profit and growth rate of listed companies in the LED industry in 2016, it can be seen that the industry performance is generally good. III. Investment Suggestion: the technical threshold in the field of LED chips is relatively high, and Sanan Optoelectronics, which has accumulated technology for a long time and is the leader in the industry, is recommended; The competition in the LED packaging field is relatively fierce, and the industry concentration is continuously increasing. It is recommended that the packaging large enterprise Jason and the Chinese packaging leader Hongli Zhihui, which continues to release production capacity; The industry penetration rate in the LED application field is continuously increasing, the growth rate of traditional applications is slowing down, and the growth rate of emerging applications exceeds that of traditional applications. Liad, the first primary enterprise in Emerging LED small-pitch applications, is recommended. Risk warning. The development speed of the industry is not up to expectations; There is a risk of large fluctuations in the market environment.