2014 LED lighting growth determined higher

2014 LED lighting era, the industry inflection point upward, profit improvement, policy catalytic acceleration. 2014 industry boom and expansion of confidence will continue to rise, industry growth is expected to resume high growth. The focus with a LED energy saving lamp price close to 1 times; second: $10 a rapid increase in the sweet spot products; third: high elastic demand into the growth stage, the demand for price sensitivity increase; Fourth: LED lighting application value of the contribution ratio will be when the phase and backlight, is expected to reach more than 40%, fifth: in 2014, the price decline is relatively limited, a single quarter decline in less than 5%. From the financial point of view, the industry continued to improve profitability, gross margin is expected to gradually stabilize. From a policy perspective, in 2014 the world entered the second wave of incandescent ban peak, accelerate the promotion of LED lighting related products.

2014 LED lighting demand is expected to rise, or to promote the improvement of the whole industry chain supply and demand. From the perspective of the industry, with the rapid growth of demand for lighting applications, through the 2012-2013 to the capacity of the rate will continue to rise by MOCVD in 2014, the production capacity of the equipment increased from 74% in 2013 so far more than 85% (domestic promotion by 2013 more than 63% to more than 72%), with the rate increase by MOCVD, the international leading manufacturers have to be increased capital expenditure, highlighting future confidence. The use of MOCVD to enhance the rate of equipment capacity, driven by the upstream Mo source and demand to sapphire, supply and demand is expected to continue to improve; downstream packaging applications, with the traditional lighting manufacturers to accelerate the transition to LED, gradually enhance the degree of industry concentration, the relationship between supply and demand will gradually improve.

2014 acquisition is expected to continue and increase the flexibility. According to relevant statistics in 2013 LED acquisition of the whole industry and the main event has more than ten, related to listed companies have 11, which relates to the packaging applications of 8, mainly to expand the product structure and expand product applications, which relates to the extension of industrial chain, packaging is application to downstream application or extension channel. Our analysis shows that with the embodiment of scale advantage, is expected in 2014 and will continue to purchase the entire industry, especially in the packaging application link, there will be more and more listed companies listed on the platform to launch a series of acquisitions and integration, in order to optimize the structure of products and applications.