LED industry market situation is difficult to match the market darling identity

As one of the strategic emerging industries, LED industry in recent years has been a hot investment in china. Support at the national level has been relatively large, it is predicted that the LED industry in the country's development plan, in 2020 will reach ten billion yuan output value of the scale. However, seemingly unlimited potential, the industry has weakness. 2012 annual report released by the companies generally show poor performance, it is difficult to match the market darling identity.

According to the Price Waterhouse released the "2013 edition of high brightness LED industry government strategic management and Regional Development Strategy Research Report" pointed out that the LED industry has been supporting industries to provide a large number of state subsidies. However, the analysis shows that the government subsidies have not been mainly used to research and development of technology and products, there is no domestic manufacturers have mastered the core technology of LED. Early expansion of the industry is not only blind expansion, but also a low-end expansion of the industry. The pressure of the future market is not only due to the high production capacity of the decline in prices, but also from the overwhelming pressure on the introduction of new technologies to upgrade the product differentiation. Therefore, in 2013, the entire industry is not optimistic, intense price war, the domestic LED companies or will shuffle. From the point of view of supply and demand structure, the current situation of the overall oversupply forecast in the next year will not be substantial changes, and even some enterprises can stand in 2013 have to hit a big question mark.

Data show that, compared with 2011, a number of LED companies in the year 2012, both the main business income or net profit has been a significant decline. Such as the well-known LED chip companies Elec-Tech, 2012 revenue of 2 billion 824 million yuan, down 8%; net profit of 168 million yuan, down 57%. Silan 2012 revenue fell 12.74%, net profit fell 88.07%. National Star photoelectric 2012 revenue fell 11.87%, net profit fell by 66.45%.

Another data show that in 2012 China's LED industry has grown by 34%, the expansion of the supply side of the industry to give a huge price pressure. Even the price war has become the main strategy of the enterprise, the industry has shown a decline. Some people even think that the LED industry will repeat the mistakes of the photovoltaic industry. Especially in mid March of this year, go ahead in the LED industry in Shenzhen City, suddenly in the "official gazette" in the form of the repeal of the March 2009 issued "on the issuance of the LED industry development plan of Shenzhen city (2009 - 2015) of the notice", it is to let this view rampant, the entire LED industry have shown a pessimistic mood.

The Research Report of Puhua electronic equipment analyst believes that the past two years because of the domestic LED industry downturn is mainly suffered a serious overcapacity.