**Grocketing waits for the outbreak of the LED industry

The disclosure of the interim report results of LED-related companies is nearing completion. In the first half of the year, the LED market sales increased significantly year-on-year, and the company's profitability was good. In the context of demand start-up, some funds have already replenished shares of LED industry-related companies in the warehouse. Among them, the funds of fund companies such as Guangfa, Boshi, Invesco Great Wall, and Bank of Communications Schroder were significant in the second quarter. Insiders pointed out that in 2013, the downturn of the LED industry last year has been significantly warmed by commercial lighting. If the third quarter can be further verified in the performance, the full outbreak of the LED industry is just around the corner.

Wind statistics show that among the green energy-saving lighting enterprises that have been announced mid-year, the total number of institutional holdings is 3.753 billion shares, of which the fund holds 903 million shares, which is 40% more than the 645 million shares held at the end of last year. Sanan Optoelectronics has become an LED stock that the fund has held together. A total of 140 funds are lurking among them. The rich country Tianbo innovation theme fund and Bank of Communications Schroder blue-chip fund bought 13.68 million shares and 1.27 million shares respectively. Jufei Optoelectronics, Ruifeng Optoelectronics, BDO Runda, etc., have also obtained substantial fund positions. In addition, the Social Security Fund bought National Star Optoelectronics and Xinhaiyi in the second quarter, and increased its exposure to sunlight.

According to the fund's mid-year report, Golden Eagle Strategy Configuration and Golden Eagle Thematic Advantage Two Funds Top Ten Awkwardness Stocks respectively represented BDO Runda and Sunshine Lighting two green lighting stocks. The two funds together hold BDO Runda 2.0897 million shares, Sunshine Lighting 148.95 million shares.

Chen Xiao, Director of Fund Management Department of Golden Eagle Funds and Golden Eagle Strategic Allocation Fund Manager, told the China Securities Journal that the future of the LED industry is promising. After experiencing the downturn of 2012, the LED industry has clearly recovered in 2013, driven by commercial lighting.

However, a fund manager of a fund company in Guangzhou holding heavy stocks in the LED industry in the second quarter stated that in the LED industry chain, the current domestic LED companies are mainly concentrated in the packaging of the middle reaches and downstream lighting products, but simply production Processing, lack of core technologies, especially packaging companies without technical thresholds, may be a hidden danger to the development of the industry. Especially for the downstream lighting companies, when the demand comes up, more production lines, performance will come up, but once the demand weakens, they will again face the problem of excess capacity. Therefore, investment in such companies should pay attention to the problem of weaker demand.

“The number of tenders for LED street lamps in the first half of the year has reached 20 billion yuan, a substantial increase compared to the same period last year. But from the interim results of related companies, sales data has not yet seen a significant increase. Therefore, it cannot be confirmed that the LED has exploded and needs to be The quarterly report further confirms the trend and the results also need to be further verified by the market.” The fund manager stated that some LED companies producing backlit displays are relatively optimistic because they have certain technological advantages.

Judging from the current situation studied by reporters, the growth of commercial lighting, including LED street lights, is undoubtedly, and at a certain point in time, LED civil lighting will surely erupt.