LED lighting industry has a bright future

As the national LED industry concentration area, Fujian’s upstream LED giant San’an’s net profit soared by 30% in the first half of this year, and the company’s sales in the midstream and downstream industrial chain also showed a substantial increase.

It is worth noting that our province’s policies have clearly made the LED industry bigger and stronger. It is expected that by the end of 2015, LED lighting products will be widely used in public lighting in the province, and local companies will give priority to the benefits. The secondary market LED lighting concept stocks have also recently become the focus of the agency.

Increased income and increased profits Sanan photoelectric report greatly increased performance
As an LED leader of our province and even the whole country, Sanan Optoelectronics released a semi-annual report on the 6th that in the first half of this year, it was mainly due to strong demand for LED lighting, and the equipment was basically in full production. The company’s revenue increased by 22.13% over the same period of last year. Net profit attributable to shareholders of listed companies net of non-recurring gains and losses increased by 33.47% over the same period of last year.

After experiencing the long and cold winter of the LED industry, finally ushered in the spring. Another company in the LED upstream industry chain in Gansu Ganzhao Optoelectronics also released its first-half performance report, saying that due to the increase in demand in the LED industry in the first half of 2013, the company’s product sales volume and operating income both showed year-on-year growth.

In addition, at the beginning of the third quarter, Anhui Sanan Optoelectronics Co., Ltd., a wholly-owned subsidiary of Sanan Optoelectronics (hereinafter referred to as “Anhui Sanan”), signed a strategic agreement with Shenzhen Zhaochi Energy Saving Lighting Co., Ltd., a wholly-owned subsidiary of Zhaochi. The Procurement Framework Agreement stipulates that Shenzhen Zhaochi will purchase 500 million yuan of light-emitting diode chips from Anhui Sanan in the coming one year from the date of signing of the agreement. This quota accounts for approximately 3,163 million yuan of sales revenue of Sanan Optoelectronics in 2012. %.

Industry sources said that the hot downstream application market has directly boosted the performance of the upper-middle-stream companies. The reporter learned from an interview yesterday that downstream application companies such as Fujian Hongbo Optoelectronics and Cross-Straits Lighting Energy-Saving Technology Co., Ltd., both in terms of sales and purchases of products, have seen a substantial increase in the first half of this year, including sales of Hongbo’s domestic and domestic sales of lighting products and exports. The increase has exceeded 50%.

In addition, according to customs statistics, the LED LED enterprises in our province have achieved an increase of 130.32% in the first quarter of this year.

Chen Ming, the person in charge of Fujian Hongbo Optoelectronics, told reporters that since the end of last year, due to the obvious decline in product prices, it has gradually narrowed the price gap with energy-saving lamps and other products, and the consumer market has further opened. In addition, the government’s vigorous procurement has also greatly promoted. The LED downstream business sales, the industry is moving from the maturity period to the outbreak.

The policy favors frequent LED lighting lighting market opening

Our province is a key development area for the national LED industry. According to the data provided by the Photovoltaic Industry Association of our province, it has owned more than 300 production, trade, and related supporting enterprises in 2012, achieving a production value of 80 billion yuan, becoming an important global high-end energy-saving lamp. Production base.

In order to speed up the development of the LED industry, after the "12th Five-Year Plan for Energy-saving and Environmental Protection Industry Development" and "Semiconductor Lighting Energy-saving Industry Development Opinions" and other policies were favorable at the beginning of the year, our province has issued additional policies to increase the LED industry. On May 7th this year, the Fujian Provincial People's Government issued the “General Office of the People’s Government of Fujian Province and transmitted the Notice of the Provincial Information Bureau on the Measures for the Promotion and Application of LED Lighting Products in Fujian Province”. It is expected that the province will be basically realized by the end of 2015. In the field of public lighting, LED lighting products are commonly used to drive the province's LED industry to increase its output value by more than 500 billion yuan.

According to the notice, before the end of 2013, two counties in Yunxiao County and Liancheng County completed the transformation of LED lighting in public places in this county; by the end of 2014, at least one county in each province and city in the province must have completed the LED lighting transformation in public places.

“This will be a great boost for the photovoltaic companies in Fujian. Local enterprises will have great advantages in winning these projects,” said Chen Tao, executive deputy secretary-general of the Fujian Optoelectronics Industry Association. It is reported that in the future the government will publish a list of suppliers of LED optimization products. Companies on the list will be financed or invested by state-owned capital or apply for financial incentives or subsidies for LED lighting projects.

It is also understood that at present, Fujian Cross-Strait Lighting Energy-Saving Technology Co., Ltd., Fujian Provincial Expressway Co., Ltd., and Fujian Shengyuan Electronic Technology Co., Ltd. have all participated in the application for energy-saving lighting demonstration projects in our province.

Corporate overweight investment and capacity expansion agencies are eager to share the LED lighting concept stocks industry with policy warming, no doubt once again ignited the company's investment enthusiasm.

Take Sanan Optoelectronics as an example. In March this year, we just gave up the issuance plan. In the second month, the company reluctantly sought financing in the secondary market. On May 28th, Sanan Optoelectronic announced that its non-public issuance of stocks at a price of not less than RMB 15.82 per share will not exceed 208.6 million shares. The planned total amount of funds raised will not exceed RMB 3.3 billion, of which no more than RMB 2.8 billion will be invested in Wuhu Optoelectronics. Industrialization (second phase) project. The announcement shows that the company's Wuhu Photoelectric Industrialization (Phase II) project will expand the production scale of blue and green chips based on the first phase of the project.

Upstream enterprises have increased investment, while midstream and downstream enterprises have actively explored the market. There are no shortages of companies that have begun to turn their attention from various engineering projects and energy-saving renovation projects to the civilian market. “The company has expanded a number of commercial customers, such as supermarkets, fast-moving and other chain companies. Next will further open the civilian channel, and gradually into the family market.” Fuzhou, a LED company head in Cangshan District, told reporters that due to home lighting Products have higher requirements for lighting, and the company is still in the stage of technological upgrading.

The best-selling LED lighting products in the primary market made the LED lighting concept stocks in the secondary market become the focus of the organization.

According to the published mid-year report, there are 14 companies in the electronic stocks of the Masukura agency in the second quarter that have more than 1 million stocks. Among them, Hudian, Sanan Optoelectronics, Chaohua Technology, Silan Microelectronics, Yiwei Lithium Energy, Lixun Precision, Farah Electronics, and other companies were more than 10 million units of Masukura.

From the perspective of market performance, from August to yesterday's close, 12 of the 14 electronics stocks in Masukura's second quarter rose. The most typical is Sanan Optoelectronics. The number of institutions to increase warehouses is 42.818 million shares, and the cumulative increase during the month is 12.47%.

Industry insiders predict that the current market speculation will shift, and LED lighting concept stocks are expected to replace the concept stocks such as mobile games that have soared in the early stage and become the hot spot for market capital speculation in the next stage.

Abroad: Seoul City Government encourages LED lighting

A few days ago, Seoul, the capital city of South Korea, has announced plans to invest in installing more LED lamps in public places (including subway stations and streets, etc.), and encourage the private sector to further expand the scope of installation. It is planned that by 2018 the municipal government office will use LED lighting entirely in the hope of reducing energy consumption and assisting the LED lighting industry. The Seoul government also stated that this plan will be expanded to the private sector by 2030. It is estimated that by 2014, about 800,000 LED lamps will be installed in the public sector, and another 70,000 LED lamps will be installed in the private sector.

The municipal government also plans to build an intelligent lighting grid with 1.32 million energy-saving street lamps by 2014. To encourage the private sector to install, the city will provide a loan plan of up to 1 billion won (about 870,000 U.S. dollars) and an interest rate of 2.5%.

Analysis: LED lighting demand is increasing

LED has a wide range of application space, the demand for display screens and backlighting has driven the LED industry's last round of growth. LED as a new generation of light sources has significant advantages in terms of energy saving and service life compared with traditional light sources. At present, LEDs are widely used in many fields including display screens and backlights. The demand for LED display and backlighting has become the main driving force for the rapid development of the LED industry.

With the advent of LED lighting, lighting is the next trend investment opportunity in the industry. The price of LED light source products has dropped sharply, and the price of domestic LED light sources and energy-saving lamps with the same light efficiency has approached 2:1. Due to longer service life and obvious advantages in terms of energy consumption, LED light sources have shown more and more obvious economical efficiency compared with traditional light sources. We believe that the time is ripe for LEDs to replace traditional light sources, and the "sweet spot" for demand volume has arrived. The future of LED light sources to replace traditional light sources will become the industry's next trend of investment opportunities.

With LED technology gradually "walking into the homes of ordinary people", the LED industry is about to enter the third growth cycle. Professor Fang Zhilie of Fudan University, which has the reputation of “Leading People” in China’s LED technology, introduced at the forum: The first two growth periods of the LED industry are mainly signal and display applications before 2010; and backlighting from 2010 to 2013. Application-based; 2013, general lighting will become the "main force" of the LED industry.

China Investment Securities

China's LED lighting industry has a huge potential market. According to statistics, from 2009 to 2013, the compound growth rate of the market scale reached 43.58%, of which by 2012 China's LED industry output value reached 205.9 billion yuan, an increase of 34%. Among them, in the three industry branches of LED upstream epitaxial chips, midstream packaging, and downstream applications, the downstream application industry has the largest output value and the fastest growth, with a production value of 159 billion yuan, a year-on-year increase of 37%. It is estimated that by 2013, China's LED lighting market is expected to reach 73 billion yuan.

The global LED market is driven by the demand for hand-held devices and LED lighting products. It is estimated that the global LED output value in 2013 will reach 12.4 billion U.S. dollars, which is a 12% increase compared to 2012.