Beware of "LED listed hot" resource mismatch

Recently, there are several LED companies will be. Read the prospectus can be found, after the listing of these companies, the funds raised almost invariably used in capacity expansion projects. However, the rapid expansion of production capacity may not be able to effectively digest the market, vicious competition or inevitable.

Energy saving and environmental protection is one of the seven strategic emerging industries. As an important part of energy saving and environmental protection industry, LED lighting industry in recent years has been the central and local governments to focus on support, all over the country have introduced various subsidies and procurement plans. Recently, there is news that the 12th Five-Year will be arranged during the 8 billion central budget funds to purchase LED efficient road lighting products.

In the industrial policy of "spring wind" blowing, the LED lighting enterprises such as bamboo shoots after a spring rain emerged, the traditional lighting companies also have transformation, LED project get ready for battle, blossom everywhere. Mainland capital market has set off a "LED listed hot".

In just a year and a half, there are 10 companies based on LED landing A shares market, only a year in 2011 there are listed on the 7. There are a number of LED companies in the queue stage. Look at the prospectus can be found, these ambitious plans to expand the enterprise, the funds raised almost without exception in the capacity expansion project, the original capacity expanded to 2-3 times. However, the rapid expansion of capacity can be effectively digested?

From the perspective of the industry chain, including the majority of LED companies, including the vast majority of investment companies, mostly concentrated in the middle and lower reaches of LED packaging, application links. But the application of the industry chain terminal market has not yet fully nurtured. Led by the government's street lighting project to make China LED lighting in the field of commercial lighting pioneered the development, but the large-scale promotion of LED lighting to civilian lighting still does not have the conditions. Among them, the most realistic obstacle is the price, due to the high cost of the market, the average price of LED lamps than the same brightness of ordinary energy-saving lamps 3-4 times higher than the price.

In the wafer, the industrial chain on the other end of the upper reaches of the chip, because of technology, patent, and other reasons, most of the upstream manufacturers failed to meet the requirements of high-end products in the downstream part of enterprise application, LED chip, wafer is still heavily dependent on imports of raw materials. In addition, for the production of LED chips, epitaxial wafer MOCVD devices are basically monopolized by foreign countries, the mainland upstream manufacturers need to constantly introduce equipment from abroad. At the same time, MOCVD technology itself is also constantly improved and improved, even if the LED application market in two or three years after the volume of development, the introduction of the mainland may be outdated equipment.

In view of this, LED companies have launched LED downstream expansion project is likely to face a "blocking back" situation, considerable overcapacity worries. Once these projects are still unable to open up the market, vicious competition is inevitable, the industrial structure will save a lot of variables.

From the point of view of capital allocation, LED listed hot will exacerbate the vicious competition in the industry. According to statistics, 10 companies have been listed LED fund-raising more than $6 billion, of which there are over raised funds of 3 billion yuan, more than raise funds lying on the account. Most of these listed companies are at the end of the LED industry chain, the funds have not been used to melt technology upgrades, or the development of core technology. LED companies listed on the direct result of financing may also be overcapacity.

In the economic restructuring and industrial upgrading has become the most urgent task of the moment, the LED industry naturally needs support, but in the allocation of resources should be more inclined to the high-end chain. For a year or so, the production line can be built up, the core technology is not simply rely on the money to build it in a short time. In the process of "made in China" to "create" in China, the capital market may be able to do some articles in the field of high-end technology.