LED investment highlights: LED lighting products into the government procurement list

Event:

China's Ministry of Finance in early January will be "energy saving products government procurement list" (hereinafter referred to as "energy saving list") (thirteenth) were publicized. According to the "Office of the State Council on the establishment of the government system of compulsory procurement of energy-saving products of the notice" (Guo Ban Fa (2007) No. 51) regulations, the People's Republic of China Ministry of finance, the national development and Reform Commission adjusted the energy list. In the list of A020619 lighting equipment, for the first time in the LED lighting products, including general lighting self ballasted lamp for general lighting fireflies, double end fluorescent lamps, high pressure sodium lamp, also joined the LED road / tunnel lighting products, LED lamp and reflective self ballasted LED lamp.

Investment points

LED lighting products selected for the first time the government procurement list, is expected to boost the confidence of LED lighting promotion. The government procurement list update, LED lighting products for the first time were selected, involving a total of LED lamp / tunnel lamp, LED lamp, reflective self rectifying LED three kinds of products, the product types were 251, 177, 90, 84 (involving nearly 20 listed companies), covering the country's more than and 30 provinces and city.

The selected LED lighting products procurement list, one is the energy demand (LED for more energy favored), the LED lighting products to promote the accelerated demand, there will be conducive to the application of LED lighting in various fields, which is expected to boost the confidence of the promotion of LED lighting.

2013 LED lighting is expected to speed up the promotion. Since the introduction of Guangdong Province in May 2012 LED lighting promotion planning, the city has more than ten introduced LED lighting promotion planning, 2012 October LED lighting demonstration project, the results of public bidding, around LED lighting project to accelerate, as expected the LED lighting products in the government procurement list, around the promotion of LED lighting is expected to further accelerate, so we believe that 2013 will be LED lighting promotion accelerated year.

2013 lighting promotion speed will benefit LED lighting companies around. With the lighting product diversification, rich, foreign prices decline further, the EU ban on incandescent lamps, the Japanese electricity shortage in developed countries, 2013 high tariff area LED lighting products will likely accelerate penetration, conducive to domestic lighting export enterprises; domestic LED lighting products into the government procurement list, for the government to promote LED lighting is expected to remove the obstacles. Accelerate the promotion of LED lighting demonstration, to around LED lighting company.

Investment strategy and suggestion:

In the long run, the relevant domestic enterprises LED lighting is expected to benefit, concern about the proposed regional leader, KingSun, nationstar, Elec-Tech, Sanan optoelectronics, Yankon etc..

Risk warning

Policy implementation is lower than expected

Downside risk

Regional competition risk