LED lighting leading price war lose the first battle

KingSun (002638) the results of face velocity to be caught off guard. September 28th results notice notice that the company expects the first three quarters of 2013 attributable to shareholders of listed companies net profit rose -10% to 10%, in the year of August 29th, the company expects this figure is between 10% to 40%.

Negative growth in performance, and change only in a month. Affected by this, in September 30th the company's share price was down.

Insiders remind that the three quarter of this year, LED lighting leading enterprises to launch a fierce price offensive, to expand the scope of the market, the survival of small and medium sized enterprises, from the current point of view is the first to hurt themselves.

A month is not allowed to mention two years later

The last trading day before the national day, KingSun shareholders to Lu seeast. Fu Yi opened yesterday, the company's share price continued to fall, closing down 9.03%, to close at 10.77 yuan.

Performance is the face of the company's share price fell fuse.

In August 29th, the company released the report, while expected from January to September attributable to shareholders of listed companies net profit range of 101 million to $129 million, the change range of 10% to 40%.

What material, in September 28th the company's performance forecast announcement released, said the net profit attributable to shareholders of listed companies 82 million 998 thousand and 600 yuan to $101 million, an increase of -10% over the same period last year to $10%.

This result really pit father.

Nanjing, a shareholder of the company to the Securities said that it is difficult to accept the change in performance, after all, just a few days ago, the company is also an effort to create a peaceful atmosphere.

September 25th, the company said the LED lighting application industry is in demand for rapid release, the market boom for the better stage, two years after the sale of LED lighting products and electronic business platform sales will grow.

"The company even a month of things are not allowed to judge, how to talk about the market situation after two years? Aforementioned shareholders asked.

Fake door had a sensation

The reporter found that since November 2011, KingSun landing small plates, often put in the letter cropper. At the beginning of January this year, the company also released the results announcement notice of amendment, the company expects 2012 annual profit year-on-year changes in the performance of the amplitude of -11.27% to 18.73%. Previously, the company in 2012 three quarterly net profit is expected to grow by 10% in to 40%.

Although this performance changes related to the company's offer, but the final report in 2012 showed that the company's net profit fell 15.56% year on year, the notice again empty.

The company "fraud door" in the capital market. At the beginning of this year, the relevant media reports have questioned the KingSun "allegedly fictitious sales" and "suspected of fraud on the market". May 3rd the company received the Commission investigation notice, on suspicion of illegal disclosure of information, the Commission decided to initiate an investigation on the company.

Yesterday, the reporter called the company's securities department. Company sources told reporters, secretaries travel, just acting on behalf of the departure, the relevant circumstances are not clear. "

Fierce price war leading down first

Let the market worried that the company behind the performance of face, LED lighting leading enterprises in the fierce price war in "lose the first battle".

The second half of this year, LED lighting business to PHILPS, NVC, billion light as the representative of all prices down. A July data show that first tier manufacturers Tongfang and NVC 7W LED bulb price fell 37.3% compared with June, 36%, some enterprises even the highest prices reached 40%, lead the industry into a low price competition.

Not only that, brand enterprises to rapidly expand sales channels. In order to KingSun as an example, the company is promoting "hundred thousand shops" plan, annual plan for the next three years to build 1000 stores, including outlets.

At present, the market baptism of leading enterprises did not achieve the desired effect, but hurt themselves. "The" securities "reporter familiar Shanghai brokerage researcher said.

In the announcement, KingSun also bluntly, correction performance for the LED lighting market competition intensified, resulting in product gross margin declined in 2013; vigorously laying global network of channels, resulting in increased costs; the company to accelerate the expansion of the global market, leading to increased promotion expenses.

Aforementioned researcher analysis, due to the cost advantage, even if the leading enterprises to raise the price of the sword, small and medium enterprises still have some profit shrink space. The current LED lamp prices into energy-saving lamps 2 times the price range, is the industry known as the sweet spot". Under the price of such light, we once thought the market new clothes, replacement demand is expected to increase rapidly. But in fact, consumer acceptance and purchasing power is not high, blocking the volume of LED products. "

In the first half of this year, belong to the industry's FSL (000541, stock it), sunshine lighting (600261, stock it) has more than 10% net profit growth, brokerage firms to remind investors need to pay close attention to changes in the performance of these companies.