2011 LED and photovoltaic industry A shares raised more than 16 billion

Although overcapacity has caused the industry of large enterprises decline in performance, but LED and solar photovoltaic industry related companies still have to rush to the fore investment expansion, and in the A stock market a lot of financing. As of December 25th, this year, the above two belong to the field of new energy industry investment projects related to the financing from the market up to about $16 billion 110 million.

Wind statistics show that as of December 25th, this year, A shares IPO, refinancing raised investment projects of about 1743, with a total investment of about $632 billion 650 million to raise funds. Among them, LED and solar photovoltaic industry financing behavior involving 26 companies, 44 projects, the total amount of funds to be invested about $16 billion 110 million. It is only disclosed IPO equity investment projects but has not yet completed the IPO program related industries have not been included in the company.

From the A shares into a huge amount of money into excess capacity in the industry is not a wise choice, the two industries are actually facing a difficult situation. Earlier, the domestic solar photovoltaic industry, the 4 giants of the Yingli group, Suntech Power Co. Ltd., Trina Solar Ltd., LDK LDK Solar Energy Ltd announced third quarter earnings, 4 companies a total loss of $290 million.

According to CCID think tank solar photovoltaic industry Research Institute survey, more than half of China's small and medium-sized enterprises has been discontinued 30% battery components, a significant reduction of 10%~20%, slightly cut or are trying to maintain production, and has begun to different degrees of layoffs. A part of a polysilicon project investment background of listed companies also recently started production, including Print-Rite Sichuan silicon industry limited company has started in December, temporary maintenance shutdown Le Leshan electric Print-Rite silicon industry science and technology limited liability company in November to stop the implementation of technological transformation, Xinguang silicon industry science and technology limited liability company production technology for half a year.

LED industry is not good enough to go, structural overcapacity led to slow progress in the construction of LED projects. According to the engineering LED Industry Institute (GLII) statistics, from 2010 to the end of November 2011, China LED a total of 49 projects, total planned investment of 259 billion 700 million, the average of a project planning investment as high as 5 billion 300 million. It is understood that the progress of these projects is very slow, some projects even stagnation or cancellation.

Overcapacity led to the decline in product prices, and will further affect the performance of the relevant companies. Only the first half of 2011, the 2 inch sapphire substrate prices from the beginning of the highest 35 dollars / piece, fell to $13 / $~15, the average fell by more than 50%; the average price of 25% LED chip LED package; the average price of 23%; the average price reached 21% LED. The price difference between different types of products vary greatly, some of the lamp string price drop even up to 75%. Affected by the decline in product prices, some of the three listed companies in the LED industry quarterly report shows that the company's net profit growth, gross margin and inventory data are negatively affected.

Obviously, LED and solar photovoltaic industry overcapacity has seriously affected the return on investment of the relevant companies, but these companies still insist on A shares from the market will be a steady flow of funds into the industry. Comparison of some of the traditional industries with excess capacity, as emerging industries LED and solar photovoltaic industry, the situation of concern.

According to Wind statistics, as of December 25th this year, the total amount of iron and steel raised investment projects totaling about 16 billion 500 million yuan, compared with the amount of LED and solar photovoltaic industry financing. But if excluding Hebei iron and steel (000709) additional financing for the acquisition of 16 billion yuan of Handan Iron and Steel Group's 100% stake in the Han Bao Steel does not increase steel production capacity of the project, and the real capacity related projects to raise funds is less than 500 million yuan. Visible, the capital market for the same overcapacity in the industry has a different attitude.

Compared to the traditional industry overcapacity, LED and solar photovoltaic industry investment heat is still high. Although the LED and photovoltaic industry is an emerging industry, investment demand is indeed very large, but the use of raised funds to invest in the field of unclear prospects should cause the attention of investors. On the other hand, the two sectors of the non A shares of listed companies to raise capital investment may be many, the whole industry of excessive investment in a small part of investors to invest in the focus on a single company raising at the same time, should also pay attention to grasp the dynamic information of the whole industry.