LED lighting tipping point coming, stocks optimistic downstream supply

Citigroup Global Securities report said, LED lighting will be detonated coming forward about Taiwan LED market outlook forecast, this year will be an important turning point for large size /HD TV, general lighting demand, preferred stocks bullish downstream billion light, because the LED chip rapid commercialization trend, still cautious view of the upstream manufacturers, but crystal electric has been oversold the trend prediction of improvement in profitability, will be beneficial to the stock return temperature.

Citigroup Global Securities pointed out that the recent introduction of Cree $40 Watt LED residential lighting bulbs, marking the industry is expected to take off the general lighting market. In addition, the lower part of the wisdom of the machine, white board and other related topics, such as large TV, will further drive the LED chip needs, but the overall supply and demand of the industry may be to be balanced after this year and next year.

Citigroup Global Securities also pointed out that now is a good time to layout related stocks, optimistic about the LED downstream of the supply chain, in the face of pressure is the main reason for the diversification of commercial manufacturers proposed solution, upstream manufacturers, downstream manufacturers price relatively steady. Optimistic about the layout of the light brand strategy, as well as to benefit from the wisdom of the low price machine / tablet business, the target price of 69 yuan NT, the estimated earnings per share this year, earnings growth of up to two years, up to 92%, 26%.

As for the crystal power, Citigroup Global Securities, said the mainland and South Korea due to competition among manufacturers, the long-term outlook may have its impact. But the crystal power being oversold, considering the profit trend, and in the second quarter full capacity and other factors, estimated this year's profit performance should be given back to temperature, buy rating and target price of NT $60.