LED industry boom continues to maintain rapid growth


Industry boom continues to increase From the monthly data of Taiwan's LED industry, since July 2013, the monthly growth rate of the chip and packaging industry has continued to increase. The growth rate in January and February 2014 reached 26.3, 46.1 and 10.7, 25.9 respectively. Although the data has not been fully released in March, the industry's prosperity has continued to increase from the data of the three companies that have been announced. The chip leader's March revenue increased by 38.3 year-on-year and 19.5% quarter-on-quarter. .
In the context of the LED industry's overall benefit from the explosion of lighting demand, the penetration rate continues to increase rapidly from 2013 to 2015. It is expected that global LED lighting will increase by 90 in 2014, and the quantity penetration rate will reach 20. In the Chinese market, we estimate 2014~ In 2015, the growth rate was 65 and 43. As the market's growth expectations for the industry gradually formed, we believe that the follow-up LED investment will rebound from the bottom of the excavation to find real growth beyond the industry. Quality companies such as Sanan Optoelectronics have obvious scale. With the cost advantage, with the gradual production of new capacity, the company is expected to further consolidate its market position, steadily increase its market share and achieve growth beyond the industry.
For the LED lighting industry, the high channel cost has always been an important reason for the higher terminal price. This also means that the e-commerce model has great significance and influence for the LED lighting industry. We believe that Chau Ming Technology and Sunshine Lighting will continue to build e-commerce brands and channels. With O2O's reduction in channel costs, we will effectively reduce the price of end products and further stimulate the outbreak of market demand.
The contract energy management (EMC) model is gradually rolled out, focusing on possible opportunities for listed companies to intervene. In 2014, local governments will continue to save energy and reduce emissions policies. LED lighting will be an important way to achieve. The contract energy management model promoted by capital will be further rolled out and will become an important way for China's LED industry to benefit. Listed companies have the advantages of strong capital strength and low capital cost. Many companies have actively intervened and become an important way for local governments to support the development of local industries.
It is recommended to focus on Sanan Optoelectronics, Chau Ming Technology, Sunshine Lighting, Ruifeng Optoelectronics, Hongli Optoelectronics, and Foshan Lighting. Sanan Optoelectronics is becoming a globally competitive chip company with strong strategic planning and execution capabilities. It has the potential to extend to downstream lighting applications and compound semiconductors. The company will adjust its investment plan to build 200 new industrial bases in Xiamen. To further consolidate the company's leading position; Chau Ming Technology is one step ahead in the development of lighting business in the emerging channels of the Internet, and will soon be launched; Sunlight Lighting LED lighting manufacturing capacity will continue to grow steadily; Ruifeng Optoelectronics and Hongli Optoelectronics demand are strong, lighting packaging business accounts for More than the average; Foshan lighting has the advantage of low-cost manufacturing.
LED industry key company analysis Liard: We recently participated in the research of Liard. The company independently developed the world's leading small-pitch LED display, which has obvious advantages compared with traditional products such as DLP display. The small-pitch LED display is expected to gradually replace the traditional DLP display. The company has a first-mover advantage in the field of small-pitch LED display. It is ahead of its competitors from technology to market development. It has completed a large number of domestic and foreign governments and well-known enterprises and institutions, and is expected to fully enjoy the alternative growth of small pitch in the future. At the same time, we judge that after the acquisition of Jinda Lighting, the company is expected to continue its growth strategy and extend its industrial chain layout and enter new markets to meet its growth needs through industrial mergers and acquisitions. The first quarter is the traditional off-season. We expect the second quarter to be the beginning of the company's high-growth TV orders and shipments. We expect the company to achieve a high net profit of 60-90 in 2014. We strongly encourage investors to pay close attention to the company's small-pitch product volume and the expansion of its expansion. Small-pitch LED TV is the biggest driving force for the company's performance growth. Compared with traditional DLP display, it has the advantages of convenient maintenance, seamless splicing, energy saving, long life, high brightness and adjustable. In 2013, the company's small-pitch LED TV orders were 330 million, and the market share was about 70.
Hongli Optoelectronics: In terms of industry prosperity, the LED packaging and application industry showed a good momentum of development in 2014. On the one hand, with the price of LED packaging and application products dropping at an average annual rate of 20 or so, LED demand will show rapid growth in the next three years; on the other hand, after the industry competition and demand fluctuations in 2012~2013, the current industry competition pattern Stabilization, corporate behavior tends to be rational. In terms of LED packaging, the company mainly focuses on LED lighting products, and seeks further expansion in the field of backlighting. It will further expand its production capacity according to market conditions; LED automotive signal lighting will further increase the development of domestic and foreign markets, the current stage Taking domestic auto brands as the main breakthrough direction, the business progress is good; LED general lighting business, mainly in the domestic industry, will further explore foreign emerging markets; contract energy management, will ensure the security of payment Combine with the engineering channels of Ledia to expand the company's market share.

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