LED huge profits market opened the traditional packaging manufacturers facing crisis

A continuation of last year's hot market, LED industry open capital market blitz. Market speculation is the logic behind the United States in 2014, has banned incandescent lamps, LED lighting is expected to replicate last year's European market. Industry insiders said that the United States is different from domestic sales channels, market development is not easy. Nevertheless, the general manager of sun lighting Yong still optimistic: in 2014, the industry wide profit growth of at least 20%. "

Blue chip companies will double

2013, LED lighting products in the field of commercial lighting and home lighting shine, LED indoor lighting applications for the first time beyond the outdoor landscape lighting, with a growth rate of over 80%. Hot downstream lighting field, but also benefit the LED industry chain upstream and downstream enterprises.

This year, commercial lighting will bear fruit, home lighting will quickly start. "Guan Yong is confident of the market this year. He believes that the downstream market opened, will bring huge profits to the entire industry chain, upstream chip overcapacity situation has been effectively alleviated.

In this situation, the domestic leading enterprises chip manufacturer Sanan optoelectronics recently launched private placement proceeds, the original capacity doubled.

Good business, the profit should be at least doubled in 2014, profit growth rate of only 50% of enterprises may have problems. Yong Yong believes that the LED sector in the capital market experienced a round of rise last year, this year the majority of listed companies can fulfill market expectations. However, the trend of consolidation in the industry, the financial strength of small businesses will not have a crisis.

Traditional packaging manufacturers face crisis

Pei Xiaoming, director of technology, Ruifeng on the premonition of the existence of a crisis in the integration of the industry, but he believes that the crisis is not from the capital but technological change.

Packaging technology changes, the traditional packaging enterprises will face a crisis of survival. "Pei Xiaoming said that the current industry began to rise in chip level packaging technology, the future of this technology is mature, may skip the upstream chip manufacturers packaging manufacturers to provide light to downstream application vendors, midstream traditional packaging manufacturers will be" short".

The integration of chip manufacturers and packaging manufacturers is the inevitable trend of the industry. Pei Xiaoming believes that at present, some manufacturers have begun to try to integrate the upper reaches of the industry chain, individual enterprises and even the whole industry chain integration. For example, chip manufacturers Tongfang (11.03, -0.38, -3.33%) the recent acquisition of the Hong Kong stock company Neoneon, downstream development.

Guan Yong believes that the real purpose of Tongfang is the use value of the acquisition of pharmaceutical companies in the overseas market sales channels, the company lighting products once accounted for 50% of overseas market.

Turning to the U.S. market, officer Yong admitted: the United States is a major supermarket sales channels, domestic brands are difficult to enter the United states. At present, in the U.S. market, the old lighting brand PHILPS, OSRAM and other products are still relatively strong, LED lighting companies CREE performance is more prominent.

Domestic enterprises to enter the U.S. market, mainly oem. Analysts believe that the foundry model is the United States LED lighting capacity transfer process to China, despite the low profit margins, but there is still room.