LED industry is still not optimistic about oversupply in 2015?

After a year of fierce competition, LED companies began to disclose results last year. The cost of LED lighting gradually decline, began to accelerate to replace the traditional incandescent lamp, some in the industry so LED enterprise is expected in 2014 will be a year of explosive growth, but the fact that LED enterprises to surrender answer is not satisfactory.

The LED of Guangdong Province as an example, the reporter learned that, as of now, the focus of the Guangdong LED total of 18 listed companies released results notice or report, although the focus of more than 80% of the company is profitable, but the general growth is less than expected, only a few enterprises net profit growth of more than 50%.

Insiders pointed out that due to the lower threshold of LED industry, each capital to enter, the supply is gradually increasing, industry concentration dispersion, large enterprises can share the "cake" has shrunk, even if the market is better, enterprise performance also failed to appear "blowout".

Strong growth is expected to fall

In many countries banned incandescent policy heaters, LED market last year ended a long downturn trend to pick up a lot of the industry is expected in 2014 LED outbreak, LED is the enterprise performance the explosive growth of the year.

However, the recent disclosure of statistics show that the performance of the relevant LED companies, the answer is less than expected, hardly explosive growth. LED province in Guangdong Province, for example, in 2014 the total output value of LED industry in Guangdong was 346 billion 6 million yuan, an increase of 23.09%.

Profit growth, 18 key LED listed companies in 8 companies estimated net profit growth of more than 20%, of which the photoelectric, rectangular lighting, Chau Ming technology three companies expected net profit growth of more than 50%, in addition there are some company profits or losses.

Performance is not explosive growth, first, because the domestic environment has changed, the lighting industry has a greater relationship with the real estate market, the real estate downturn led to the slowdown in the LED industry. Foshan lighting lighting industry association president Wu Yulin told reporters.

Low concentration of performance growth constraints

Some industry insiders believe that, despite the 2014 LED industry has been warmer, both the upstream chip, or in packaging and downstream applications, industry concentration is low, which is restricted to the explosive growth of the main reasons of enterprise performance.

It is understood that in the upstream of the LED field, Sanan optoelectronics, HC semitek as the representative of the commercial chip manufacturer with strong support from the local government, concentration has increased, but the upstream areas still need further out to enhance the degree of concentration of small manufacturing enterprises.

In the application of lighting industry packaging industry midstream and downstream, industry concentration is inadequate.

Ping An Securities analyst Liu Shunfeng said in a research report, in 2014, China's packaging plant expansion of an increase of 50% year on year, while chip manufacturers to expand production grew by only up to 20% in 2015, the degree of excess packaging capacity will exceed the chip. Due to the low concentration of the packaging industry, the distribution of scattered, low barriers to the industry, the industry is difficult to catch up with the fierce competition profits. "Whether it is a LED package, or LED lighting applications, the concentration is too low, there is not a LED enterprise's market share to 200 billion yuan LED accounts for 5% of the market, few companies can do a hundred billion in sales. Wu Yulin told reporters that the emergence of a big brand at least 2~3 years. Although the LED industry to pick up, but due to the brightest capital to enter, the industry concentration is low, the competition is intense, enterprise reshuffle continues, so the performance of explosive growth is difficult to appear.

Liu Shunfeng further pointed out in a research report, LED industry in 2015 will remain oversupply, LED industrial structure is expected to be changed, the strength of the manufacturers will further expand production capacity, improve market share, small and medium-sized manufacturers will accelerate the elimination of the entire LED industry will show the survival of the fittest.

For more information about LED, please click on China LED network or pay attention to WeChat public account (cnledw2013).