LED enterprise IPO "great leap forward" lighting market has not yet activated"

Last year, poly fly optoelectronics, million run technology, such as 7 LED companies to achieve IPO. This year, LED enterprise IPO boom continues.

February 1st, the Commission announced a total of 515 IPO applications in the list of enterprises in the trial, at least 9 LED companies are waiting to be listed. According to the Research Institute of Engineering LED industry, there are about 50 LED companies have been completed or are in the process of reform, in order to introduce investors, the rapid realization of the listing.

Expansion of production, to reduce the cost of scale, is the main purpose of LED listed companies financing. But with this IPO tide corresponds to the LED application market opened slowly, the current domestic LED lighting market penetration rate of only 5%. The advantages of LED lighting has not yet been stimulated, experts believe that companies want to open the market need to strengthen R & D.

IPO tide will continue

High tech LED Industry Research Institute report pointed out that these listed companies are mostly concentrated in the field of packaging LED.

In fact, LED packaging business profits are not rich. Zhang Xiaofei, President of Zhejiang Institute of industrial research, said China's packaging enterprises have more than 1 thousand and 200, more than market demand capacity. Packaging enterprises, small scale, homogeneous competition triggered price war, gross margin continued to decline.

Overcapacity is not necessarily a bad thing, profiteering enterprises will automatically exit. "Elec-Tech chairman Wang Donglei believes that in the current domestic LED market, cost control has become the core competitiveness of enterprises, not to drive down the cost of enterprises can only accept the fate of collapse or merger.

Big companies want to scale down the cost of survival in this already started price war. Zhang Xiaofei believes that the current domestic LED industry is still in its infancy, the gap between the enterprises is not obvious, the advantages of enterprises want to quickly open the gap, establish the leading position in the field of industry segments. There are also some companies choose to expand the way of mergers and acquisitions, whether it is to expand production or mergers and acquisitions, require large sums of money. He said.

In December last year, IPO approved poly fly optoelectronics, the main purpose of its financing is to expand production. Poly fly photoelectric prospectus (Draft) shows that the company plans to raise funds to invest in the production of backlight LED devices, lighting LED device expansion projects and LED technology R & D center project. Raise investment projects fully postpartum, backlight LED device production capacity will be increased by 1 billion 440 million / year, lighting LED device production capacity will increase by only 660 million / year.

There is no doubt that the current LED upstream investment overheating, we all think they can stand out. "Zhang Xiaofei said that despite the overcapacity in question can be heard without end but the capital market for the LED industry, the pursuit continued," in the upstream LED enterprises will be used for scientific research or expansion after obtaining the funds, the main purpose is to drive down the cost of. Zhang Xiaofei predicted that the next two years there will be a number of LED companies IPO.

VC is also a factor to promote LED enterprise IPO. Zhang Xiaofei said that the domestic LED in the early stages of development has been favored by the multi-channel VC, and when the company has developed into a leader in the field of subdivision, VC apparently want to promote the listing of enterprises and timely exit.

Advantages are not excited

At present, the domestic LED applications to backlight, display based, the government led the Ten City million plan to give LED a lot of engineering lighting business opportunities, but the share of greater demand in the field of civil lighting has not yet started.

According to the survey, the current domestic LED lighting market penetration is only 5%. "I don't think there will be a big explosion in LED lighting demand in the short term. Zhang Xiaofei said, taking into account the current situation of overcapacity caused some investors hit the market penetration in 2012 should be between 7% to 8%, lower than the industry had originally expected of 10%.

In fact, in the upper reaches of the impact of capacity expansion, LED lighting prices continued to decline. Golden State Securities Research Report shows that in December last year, the replacement of traditional 40W and 60W incandescent bulb minimum price has dropped to $11.1 and $18.9, respectively, LED.

The key is not the price, but the advantages of LED compared to traditional lighting has not been accepted by the market. Deputy general manager of the letter to the group admitted that Xiao Xiao, the current value of the number of consumers are very light bulb, lumens and other lighting hard indicators, and these indicators are not the advantages of LED lighting. "LED is a major advantage of energy saving, so a large amount of municipal lighting is willing to use, but for the public, very few people will care about how much electricity a bulb can save. "

At present, Akinobu group is focusing on the advantages of LED technology development and other new light fixtures, 000 small to admit to a breakthrough in the LED lighting, lighting design and optical design, make the traditional lamps nothing, in order to improve the domestic lighting market penetration.

LED industry in the upper reaches of the structural surplus, the current situation of price decline for the promotion of downstream applications to provide a positive. Zhang Xiaofei believes that if the government can increase the intensity of subsidies to the downstream, LED penetration will be higher. Zhang Xiaofei also suggested that enterprises should increase R & D efforts to improve some of the technical issues of LED lighting, including heat dissipation.