LED industry revenue in April is still optimistic about the two quarter performance

LED industry index in April than the market: April Taiwan LED chip index fell 8.82%, LED package index fell 6.64% over the same period Taiwan semiconductor components index rose 2.67%, Taiwan weighted index rose 3.48%. April LED industry index was significantly weaker than the same period in Taiwan semiconductor component index and the Taiwan weighted index. April revenue is not the signs of the season: we track the 9 Taiwan LED chip companies in April revenue totaled NT $4 billion 229 million, an increase of 7.5%, growth of 1.7%; 9 Taiwan LED packaging companies in April revenue totaled NT $11 billion 760 million, down 7.02%, a decline of 3%. LED industry in April did not show signs of the season, mainly affected by the TV backlight product specifications, improving chip yield and poor demand as expected, but the new yield began to improve in May, demand or promotion, the 2 quarter results better than expected 1 quarter overall. Comments: after the earthquake and electricity industry developments and promote energy-saving awareness, Japan LED lighting bulb sales accounted for the overall proportion rose sharply to 26% Cree; white power LED light effect re break the record industry, Veeco is expected to reach 231lm/W; in 2011 the global MOCVD equipment shipments will be 850 units to 1100 units, China market will occupy 60% shipments the. Industry: investment rating and suggestions on domestic LED industry, LED midstream packaging expansion rate exceeded due to demand growth, product prices fell significantly, has affected the profitability of enterprises, upstream of the LED epitaxial chip manufacturers with the continued expansion of production capacity and chip production capacity gradually released, pile up in excess of requirement situation may appear in the second half of the year, domestic manufacturers can enter the TV backlight and lighting applications has become an important factor affecting the supply chain and product price trend. Overall, the price decline will help reduce the cost of downstream applications, stimulate demand to accelerate the upgrade, LED lighting applications is expected to start in late 2011, early 2012. The LED industry investment strategy, we can believe that the current focus on LED lighting applications and has the advantage of brand high quality chips and other fields, we maintain the LED industry "recommend" investment rating, maintaining Yankon, Silan, nationstar "recommended" investment rating.