LED companies from the collapse of listed companies waiting to raise funds for the winter"

Capital chasing the LED industry basically copy the PV industry scenarios, the results are not similar to the field. With hundreds of billions of LED business in Shenzhen, the boss of the company, the family run, the cruel reality of the LED industry was opened. Many LED companies are waiting to be listed in order to reserve sufficient funds for the winter".

In the first half of this year, LED chip prices fell about 30%. Some analysts estimate there are more than 10% decline, and that the next two years and fall; and the 2 inch sapphire substrate market price is like riding a roller coaster, last year from $9 per piece quickly rose to $38, the year it is declining rapidly, has dropped to about $8.

The sharp decline in prices led to the phenomenon of frequent business closed. According to statistics, this year the number of LED companies closed down more than 10%, of which there are more than a package to do more than do more than 300 lamps, mostly small businesses.

"All aspects of investment expansion is a major factor leading to the above situation. Dongguan securities analyst Liu Zhuoping said. According to the research of Engineering LED industry statistics, there are 69 new investments in the first half of 2011 more than 100 million of the investment projects, and last year only 74; the upstream epitaxial chip, the first half of the investment is 71 billion 794 million, last year's total investment of 52.11%; the first half of the investment is the most popular is the sapphire project. Contract planning investment amounted to 21 billion 506 million, last year's total investment is 94.63%.

"The result is the problem of overcapacity. The LED chip manufacturer, Silan (600460, shares) the official said, "we believe that the size of the expansion of tazhun a good time. "

The consensus view is that the industry is now looking for time point is to see the opening of downstream demand. Since LED is considered to be the future of the monopoly of the light source, the LED industry will also develop into more than one trillion of huge industry, which breeds a large number of investment opportunities, triggering capital influx. However, due to the high cost of the current, the downstream demand is not open, the upstream investment impulse is bound to lead to excess supply, the industry reshuffle also opened on this.

Liu Zhuoping said that the upper reaches of the chip segment of the capital investment is very large, downstream application channels and brand barriers higher, therefore, in the LED industry reshuffle, is located in the middle of the packaging sector will bear the brunt.

From the current situation, the capital chain rupture is the culprit lead to bankruptcy. Listed companies in terms of the industry, there is no such problem. Liu Zhuoping said, because there are financing channels for listed companies, especially some of the newly listed companies, abundant capital, so there are a lot of LED companies waiting in line. "

However, the impact of listed companies is also obvious. In this regard, Liu Zhuoping gives this contrast: the first half of this year, LED listed companies operating income of the average increase is 27%, but before the three quarter growth rate dropped to 20%; from the net profit level, the average increase in the first half of 40%, the three quarter increased by only 23%. At the same time it should be noted that, although some companies do not look bad performance, but a large part of the profits from subsidies.

In the face of difficulties, there are listed companies, said gross margin remained above 50% of the industry is not, so the price is certainly there, as far as to what extent, the company is not the same. Analysts believe that the core competitiveness of LED enterprises is to see who can minimize the cost.