Where are the investment opportunities for LED industry to recover in an all-round way?

2016 is a very important year for the entire LED industry. Under the circumstance that the overall growth rate of the industry slowed down significantly in 2015, since the beginning of 2016, small and medium-sized manufacturers have closed down one after another. International giants such as Osram and Philips have adjusted their strategies and shut down their product lines, prompting industry integration and clearing production capacity, the concentration of the industry has gradually increased and the pattern has gradually improved. At the same time, the price increase at the cost end and the tight supply and demand have promoted the four price increases in the LED industry, which are transmitted from chips and packaging links to end products. The profits of enterprises have been improved and the prosperity has rebounded. As of March 27, the 2016 performance report and annual report disclosed by 26 A- share related LED listed companies show that the vast majority of enterprises in the entire industry have performed well and even have been popular across the board. There are 9 companies with a year-on-year growth rate of more than 100 in the net profit attributable to the shareholders of the parent company. Among them, there are two companies in the upstream chip end, Huacan optoelectronics and Qianzhao optoelectronics, and the Middle package end includes a company of Wanrun technology, downstream applications include Foshan Lighting, OTO electronics, qinshang, Jiawei, Lehman and Liad.