China's stock market downturn in the performance of LED shares into the hope of dawn

Although the recent A-share market downturn, but the LED TV industry chain stocks are active, yesterday's shares shares, Ruifeng optoelectronics, BOE, Hisense electric and other stocks is repeated contrarian strong go strong, and so on, while the stock market is more active in the A market. Among them, Siu Chi shares, Ruifeng photoelectric released three quarter results notice that, thanks to the large size of the LED TV industry boom, a substantial increase in performance. Thus, the stocks have become the three quarter wave tide.

LED TV usher in development opportunities

China LED TV is ushering in a golden opportunity for development. Because LED TV has a strong energy-saving effect, therefore, China's industrial policy continued to tilt to LED TV products.

According to statistics, in 2012 the global LED TV demand area is estimated to reach 8 million 500 thousand square meters, the annual growth of about 17%; 2013 is estimated to reach 9 million 300 thousand square meters, the annual growth of about 9%; 2014 to 2018, every year is still expected to maintain 3% to 6% annual growth rate, by 2018, the estimated 116 million square meters.

At the same time, LED TV OEM production has gradually become a global trend, while China has a strong industrial clusters in consumer electronics, has become a global consumer electronics manufacturing base. Therefore, the outsourcing of the global LED TV will give China's LED TV industry a great opportunity for development, which may be one of the direct driving force of the shares in the first three quarters of the performance of the company's shares, such as the stock market is significantly improved.

Industry development guide investment direction

Because of this, LED TV industry has ushered in a better investment opportunities. On the one hand is because the industrial market demand into the outbreak period, driven by sustained recovery performance. On the other hand is due to the early development of LED lighting business is lower than expected, making the underlying LED industry share price performance is lower than expected. However, LED backlight and other industries because of the explosive growth of the demand for LED TV market has rapidly become a new business highlights LED industry. This means that the low price of LED industry shares. Therefore, the three quarter results of pre hi or yejiyuzeng is expected to drive LED TV industry stock valuations rise, thus giving related stocks better investment opportunity.

More importantly, LED in the development process, but also ushered in three clear trends:

First, the trend to replace LCD LED has begun to take shape;

Two is the end consumer demand for large-size LCD tv;

LED three is the development of television gradually formed a typical "smile curve", that is the upper reaches of the design, supply of raw materials and end brand management is one of the top high profit industry, and assembling industry chain enterprises are in the end, profitability is relatively low.

Following this train of thought, in the operation, it is recommended that investors pay close attention to two types of stocks, one is at the ends of the smile curve varieties, such as Ruifeng optoelectronics, BOE, etc.. Two is trying to move closer to the smile curve of the industry stocks, shares in the vanguard of the vanguard shares, the future of the brand will be more prominent, but also in the international outsourcing business has achieved a certain market position.