LED industry three main line nuggets industry chain

LED industry research experts believe that the LED industry will enter a new golden growth period in 2014. Judging from the current state of the industry, the development of all aspects of the industry chain has exceeded expectations. It is normal for the product price to be more than 10 times higher than the current five years ago. The cost performance of LED products has experienced a rapid increase. For example, LED lighting efficiency has increased from 50 lumens/watt five years ago to the current 100 lumens/watt.

Based on the status quo of the LED industry, experts believe that the LED industry investment in 2014 should grasp the three main lines, namely upstream (sapphire materials), investment opportunities in the lighting field, as well as opportunities for industry mergers and acquisitions.

Upstream of the industry chain, sapphire material is currently used as a substrate with a capacity of 80 million pieces, but the actual demand for LED chip factories is 30 million pieces. There is a big deviation. Currently, sapphire substrate companies are losing money, and investment in future sapphire fields. The opportunity lies in its application on smart phones and smart watches.

In the upstream chip field, there are currently more than 50 companies, and the output value of China's local LED chip companies exceeds 7 billion. Zhang Hongbiao believes that the output value in 2014 is expected to reach 10 billion. Compared to last year, the days of chip companies in 2014 will be better and the profitability will increase. The supply of chips in the first half of the year is expected to be a bit tight, and prices will also be relatively stable. However, it is clear that the number of companies is still too high. Compared to sapphire materials, the LED chip sector can see even greater risks because of the lack of new demand areas.

The midstream packaging industry follows the technology-driven trend. In the words of Xiaoming Xiao, senior technical expert of Ruifeng Optoelectronics, who has been in the LED industry for 26 years, “Whatever you think of in this industry, it will ultimately be cost-effective.” Xiaoming Xiao introduced chip scale packages (abbreviated as The penetration of CSP) is the trend of the packaging industry in the future. The removal of substrates and brackets, chip manufacturers to do their own packaging, which will be a relatively large competitive crisis for traditional packaging companies.

For the industry's very concerned about the BDO Runda packaging revolution - LED flip chip, Xiaoming Xiao said that optimistic, that the future of the industry trends, but now companies can do it well do not know.

In the downstream LED application field, there are currently tens of thousands of companies. Of these companies, the most are worth 100 million yuan, but there is no company with a value of more than 2 billion yuan. Zhang Hongbiao believes that the biggest driving force in the application field this year is LED lighting. This point has been reached in the industry, but there are differences in the views of the industry regarding the size and growth rate of the LED lighting market.

Sun Yong, general manager of Sun Lighting believes that lighting applications in 2014 should have a 50% growth, and good companies will grow even faster. For the outbreak of demand in the field of lighting, the capital market has already reflected in advance, and 2014 should be the time to honor performance. Guan Yong said that from January and February this year, the performance is still certain.

Feb. 5 - Feb. 19 LED Industry/Company/Market Key Messages Dozens of LED Enterprises Queuing IPO to Meet with Lighting Outbreak

Recently, the China Securities Regulatory Commission announced the list of the latest batch of companies that are waiting in line for IPOs, including dozens of LED companies, LED lighting, power supply drivers and supporting materials. If it has passed the trial, the main LED package, application of Mulinsen, the main LED display, lighting, Shenzhen Absen Optoelectronics Co., Ltd. and so on.

30,000 shares of rectangular lighting limited shares to lift the ban on February 20 listed circulation

On the 17th, Long Fang Lighting issued a reminder announcement that the restricted shares were lifted. The company's 30.29 million restricted shares will be listed and circulated on February 20, 2014, accounting for 0.11% of the total share capital of the company.

The shareholder who lifted the restricted sale of shares was Ye Zehua, a natural person shareholder. He used to be the employee representative supervisor of the company and held 508,800 shares of the company's restricted sale shares.

Xinhai Yi two subsidiaries signed 29.8 million LED and video intelligent big single

On the afternoon of 17 February, Xinhai announced that the company’s holding subsidiary Suzhou Xinjing Optoelectronics Co., Ltd. and the wholly-owned subsidiary Suzhou Xinhaiyi Image Technology Co., Ltd. had signed a contract with Suzhou Qianning Real Estate Co., Ltd. on February 14, 2014. A total of 29,803,400 yuan worth of LED lamps and video surveillance intelligent contract.

Taiwan's LED factory bright Q2 revenue in January to reproduce the high boom

China Merchants Securities released a research report that Taiwan LED company's revenue in January bright. Major manufacturers such as Dongbei, Lunda, and New Century all achieved double-digit growth. Among them, the new century saw a monthly increase of nearly 30%, an increase of 38% year-on-year, and the best performance. Although Jingdian’s monthly growth rate was slightly lower, its monthly growth rate reached 40%, setting a record high in the same period; There are also outstanding performance.

According to China Merchants Securities, Taiwan’s LED company has been backlit and lighting needs have continued to flourish. The LED industry's boom in January was mainly attributed to backlighting and lighting. Backlight downstream customers focused on adding inventory before the Spring Festival, TV, displays, notebooks and other terminal needs have increased significantly. In terms of lighting, the United States, Brazil, and other places have increased the prohibition of the sale of incandescent lamps since 2014. The growth of the market for LED alternative light sources has accelerated greatly. Meanwhile, customers are concerned that the suspension of work during the Spring Festival will affect supply, and will all place orders before the holiday.

China Merchants Securities believes that the LED industry is expected to reproduce the high boom from March onwards after digesting inventory during the Spring Festival.