2013 LED industry consolidation is still the theme

Before the NPC and CPPCC LED industry policy frequent, LED hot plate into the market. We believe that the LED in 2010 after -2012 years of development in recent years, the industry already has a certain basis, the whole LED industry is still red, but the competition environment and the demand has been significantly better than last year. We make the following judgment on the LED industry trends in 2013:

LED policy substantive and public project may become the starting gun starting industry demand. Recalling the history of the domestic implementation of the "ten cities", such as municipal lighting project, but the effect is not ideal. In the civil market, but also because of the price of LED lighting products and energy-saving lamps are too big, LED product acceptance issues to restrict the application. Recently, the state has promulgated the "semiconductor lighting industry planning", "Chinese gradually reduce the mercury content of fluorescent roadmap" policy, the direction of development, the LED lighting industry goals, product standards and other aspects to make more detailed provisions, and proposed in the financial aspects of end products, the basic pad industry demand release. We believe that the LED policy and government led lighting project in 2013 after two sessions to enter the real start, last year, the project will accelerate the progress of construction projects, which led to the start of public lighting. In commercial lighting, some shopping malls have already begun to replace the LED lamps. We expect that with the spread of LED lamps and energy-saving lamps continue to shrink, the civilian market will also start at the end of this year. We determine the order of the start of the LED market demand unchanged, still believe that public lighting / commercial lighting will be launched in advance, followed by the civil market.

From the industry competition, the environment has improved, industry evolution is likely to HENGQIANG pattern development. We observed the changes in the industry in 2012 found that some tens of millions of yuan in sales of the size of small package and lamps factory because of high inventory, cash flow channel is slow, due to sharp falls in the price collapse, industry competitive environment has been compared to the previous optimization. This year, industry consolidation is still the theme. The competitive advantage will be further inclined to the enterprises with technical advantages, channel advantages and scale advantages. 2013 -2014 may be the last opportunity for LED practitioners to come to the fore.

Traditional lamps factory has to speed up the layout, the downstream channel and brand advantages will enable the advantages of traditional lighting companies in the consumer market is more obvious, the mode of production may be before the continuation of the outsourcing model. From our investigation of the downstream, the traditional lamp giant such as PHILPS, Osland, NVC also began to accelerate the layout of LED for. These enterprises in the early stage of LED development mainly focus on research and development, but its brand is ready, we began to think that the international manufacturer such as PHILPS, OSRAM and NVC will increase brand awareness, product development and R & D production is likely to continue this year, energy-saving lamps of the strategy, the release of foreign OEM orders, domestic leading technology companies have the opportunity.

Based on the above information, we believe that the 2013 differentiation phenomenon in LED business enterprises may further aggravate, seize the development of the industry in 2013 start of enterprises will be bigger and stronger. We believe that the success of the enterprise may be concentrated in the following categories: 1 in their respective industry chain with the technological superiority of the enterprises, such as lighting, packaging, such as REFOND, Chau Ming technology, Yankon, there may be a large-scale international manufacturer orders to undertake in the next period of time; the larger, 2 in the industrial layout is more comprehensive, the status of the industry to determine the enterprise, such as Elec-Tech, Sanan optoelectronics on their own characteristics; the 3 products have the advantage, wait for the market to start the company such as kingsun.