LED industry investment cooling chip enterprises to support key points

LED industry investment boom slightly down

At present, although the development model of OEM squeeze the profit margins of Chinese LED enterprises seriously, but the confidence of domestic enterprises in the future of the industry has not weakened. Data show that in 2013, China's LED industry plans to invest an estimated total investment of 70 billion yuan, of which more than 40% of the funds are invested in a number of industrial sectors, and even the whole industry chain investment. At the same time, non LED companies into the LED industry investment has become an important part of the LED industry to obtain investment, such projects accounted for 45% of all investment projects, the amount of more than the total investment amount of $65%.

LED listed companies in the number of financing has decreased

According to statistics, in 2012 has been listed LED companies have 10, raising net more than 5 billion yuan. Meanwhile, the share reform has been listed on the preparation of LED companies up to more than and 100. After 2014 IPO released, LED listed companies better, but arguably through 2013 a year of silence should have more LED enterprises listed, but compared with 2012, is still relatively large, the amount of financing will be reduced and heat.

LED chip corporate profits higher than other links

In the LED industry chain, the upper, middle and lower industry profits accounted for 70%, 10%-15%, 10%-15%. The data also show that, due to the low threshold, the industry has entered the middle and lower reaches of the stage of small profits and quick turnover, net profit margin has been below 5%. 2013, the entire LED industry production and sales volume, but the results of differentiation: upstream and downstream enterprises into the plight of income does not increase profits, midstream packaging enterprises in revenue growth, while profits have improved.

As can be seen from the table, in the upstream epitaxial, chip gross margin to be higher in the middle and lower packaging and application. The next two years, with the increase in the size of the LCD LED backlight and lighting applications such as high-end applications, coupled with the upgrading of enterprise technology to reduce product costs, the industry as a whole the average gross margin will have a rebound trend.

Chip prices fell, the future will focus on fostering excellent LED chip companies

2013 domestic LED chip enterprise shipments rose rapidly, but prices are falling rapidly. 2012 China LED chip prices fell by more than 30% compared with the beginning of the year, in 2013 China's LED chip prices fell by about 20% compared with the beginning. Among them, in 2013 prices fell more than 30% year on year decline in the price of the chip will be further narrowed. The price is expected to decline at the end of 2014 than the beginning of the year will fall to around 10%.

After 2013, China's local governments are no longer blindly support all LED chip companies, but focus on a few outstanding key enterprises. Therefore, the entire LED chip industry in 2013 production capacity expansion is very limited, only the leading enterprises in the stage began to seek expansion, and capacity expansion is mainly based on demand. From the listed company information disclosure, 2013 new capacity mainly in the HC semitek, HC semitek 2012 after the listing of the larger capacity expansion; an optoelectronic the issuance of the expansion of the production capacity is expected at the end of 2014. 2013-2015 LED lighting rapid growth, the new capacity should be quickly digested by the new demand.

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