LED industry a comprehensive recovery of 60% to achieve profitability

2014 LED lighting era coming. Oriental Securities researcher Huang Panpan LED industry to declare in no uncertain terms, inflection point, profit improvement policy to catalyze. 2014 industry boom and expansion of confidence will continue to rise, industry growth is expected to resume high growth.

Many aspects of information display, LED industry has encountered a turning point in 2013, 2012 LED is almost the entire trade deficit last year has changed, many companies reported earnings news, indicating strong demand for LED lighting has downstream packaging and chip transfer to the upper reaches of the enterprise.

Authorities are expected in 2014, China's LED lighting industry output value will grow 58%, reaching $180 billion. At the same time, public information display, China's Taiwan LED industry chain in the first quarter of this year, high degree of prosperity, showing the traditional industry off-season not weak phenomenon. According to incomplete statistics, as of March 19th, A shares 53 LED shares of the company has a total of 43 companies announced in 2013 annual report or performance letters, of which more than 31 companies that last year to achieve profitability of the company.

Huang Panpan pointed out that the industry's recovery is mainly reflected in five aspects: First: LED and energy-saving lamps at the lowest price close to 1 times; second: $10 a rapid increase in the sweet spot products; third: high elastic demand into the growth stage, the demand for price sensitivity increase; the value of the contribution of four: LED lighting applications the proportion of the backlight is expected to reach 40% or more; fifth: 2014 price decline is relatively limited, a single quarter decline in less than 5%. From the financial point of view, the industry continued to improve profitability, gross margin is expected to gradually stabilize. From a policy perspective, in 2014 the world entered the second wave of incandescent ban peak, accelerate the promotion of LED lighting related products.

Earnings transmission industry chain company overweight investment

Industry prospects for recovery is clear, a brokerage researcher pointed out that the order of the LED industry benefit from the downstream demand, then transmitted to the middle reaches of the industry, and then the upstream chip area.

In fact, from the perspective of the industrial chain, benefiting from the second half of last year, lighting and other market demand is strong, downstream lighting, applications and other related businesses have been basically profitable. Annual report data show that the downstream profitability has been transferred to the middle reaches of the packaging and upstream chip companies.

In the industry as a whole to the good background, a number of listed companies said it would increase investment.

Million run technology in 2013 annual report revealed that the company will further develop the United States, Canada, the European Union and other high-end lighting products in the overseas market, the depth of excavation and expansion of the domestic high-end lighting market. At the same time increase investment in R & D spending, and vigorously enrich the company's existing product line, to provide customers with a wide range of alternative options.

Midstream packaging company honglitronic accepted research institutions also said that the company is currently LED product production capacity of about 800KK / month, 2014 will be based on the expansion plan, combined with the market situation to carry on the expansion of production capacity.

Industry mergers and acquisitions surge surge elasticity

LED market will run through the year 2014. Ping An Securities analyst Lin Zhaotian believes that in the light volume, the rapid growth of demand in the background, many companies will usher in a double turning point of revenue and profit margins. From the investigation of the industry chain, this year, many LED companies have mergers and acquisitions and refinancing needs, due to the two or three line LED corporate profit base is generally not high, so the corresponding performance elasticity is very large.

According to statistics, in 2013 the LED industry and major acquisition of the whole event ten, related to listed companies have 11, which relates to the packaging applications of 8, mainly to expand the product structure and expand product applications, which relates to the extension of the industrial chain, is the main package to downstream applications or applications further expansion of channels.

In fact, as early as February 22nd, Beijing Electronics has announced, intends to 286 million acquisition of LED company founder of 100% stake, cross into the field of LED lighting. Its program by the market blitz, after the resumption of the stock closed up seven daily limit. In March 12th, FSL announced that the company intends to acquire a company called "Suzhou moonteck LaPO photoelectric Co., LED company, the company focused on LED commercial lighting products and engineering product development and production, while the company last year due to production management and production capacity of the problem is still at a loss.

In addition, Mason technologies said in the report, the future of LED affected by the price, channel, brand, market and scale, the acquisition and integration of LED in the downstream packaging and application areas will continue, and integration efforts will be more and more.

Lin Zhaotian believes that the market underestimated the intensity of the LED industry after the outbreak of domestic lighting up, short-term callback will usher in the golden opportunity of industrial layout. Lin Zhaotian Yankon optimistic about Sanan optoelectronics, Jufei, FSL, and other leading enterprises investment opportunities throughout the year, the proposed active buying.

Intensive research institutions involved in waiting for an opportunity

It is worth mentioning that this year, a number of key companies in the LED industry by the agency's special attention.

According to incomplete statistics, the past two months, there are hundreds of institutions are nearly more than and 30 field research on the industry in FSL, alto electronics, nationstar, Riyadh, photoelectric, honglitronic, HC semitek more than and 10 enterprises.

Shanghai, a private equity fund investment director Mr. Chen is very optimistic about the LED industry, he was in the beginning of the investigation of ten LED listed companies, and according to the results of the survey can be made in China Optoelectronics, national star, etc..

"LED line