LED policy and public works substantial start

Before the two sessions LED industry policy frequent, LED plate has become a hot market. We believe that the LED in 2010 after -2012 years of development in recent years, the industry already has a certain basis, the whole LED industry is still red, but the competition environment and the demand has been significantly better than last year. We make the following judgment on the LED industry trends in 2013:

LED policies and public projects may be the starting point for the start of the industry needs to start the gun. Recalling the history of the domestic implementation of the "ten cities", such as municipal lighting project, but the effect is not ideal. In the civil market, but also because of the price of LED lighting products and energy-saving lamps are too big, LED product acceptance issues to restrict the application. Recently, the state has promulgated the "semiconductor lighting industry planning", "Chinese gradually reduce the mercury content of fluorescent roadmap" policy, the direction of development, the LED lighting industry goals, product standards and other aspects to make more detailed provisions, and proposed in the financial aspects of end products, foundation pad set industry demand for the release of the lighting project we believe that the LED policy and government may enter the real start in 2013 last year after the tender NPC and CPPCC, will accelerate the progress of construction projects, so as to drive the start of public lighting. In commercial lighting, some shopping malls have already begun to replace the LED lamps. We expect that with the spread of LED lamps and energy-saving lamps continue to shrink, the civilian market will also start at the end of this year. We determine the order of the start of the LED market demand unchanged, still believe that public lighting / commercial lighting will be launched in advance, followed by the civil market.

From the point of view of competition in the industry, the environment has improved, the evolution of the industry may be strong to the strong pattern of development. We observed the changes in the industry in 2012 found that some tens of millions of yuan in sales of the size of small package and lamps factory because of high inventory, cash flow channel is slow, due to sharp falls in the price collapse, industry competitive environment has been compared to the previous optimization. This year, industry consolidation is still the theme. The competitive advantage will be further inclined to the enterprises with technical advantages, channel advantages and scale advantages. 2013 -2014 may be the last opportunity for LED practitioners to come to the fore.

Traditional lighting factory has accelerated the layout, the downstream channel and brand advantage will make the traditional lighting enterprises in the consumer market advantage is more obvious, the mode of production may continue the previous outsourcing model. From our investigation of the downstream, the traditional lamp giant such as PHILPS, Osland, NVC also began to accelerate the layout of LED for. These enterprises in the early stage of LED development mainly focus on research and development, but its brand is ready, we began to think that the international manufacturer such as PHILPS, OSRAM and NVC will increase brand awareness, product development and R & D production is likely to continue this year, energy-saving lamps of the strategy, the release of foreign OEM orders, domestic leading technology companies have the opportunity.

Based on the above information, we believe that the beginning of 2013 LED practitioners differentiation phenomenon may be further intensified, seize the first year of the development of enterprises in the industry in 2013 will be bigger and stronger. We believe that the success of the enterprise may be concentrated in the following categories: 1 in their respective industry chain with the technological superiority of the enterprises, such as lighting, packaging, such as REFOND (300241.CH/ 17.79 yuan, buy carefully, Chau Ming Technology (300232.CH/) RMB 12.05, did not have a rating of Yankon (600261.CH/), RMB 9.67 no, there may be a large-scale rating), the international manufacturer orders to undertake in the next period of time; 2

The larger, more comprehensive in the industry layout, determine the status of the industry enterprises, such as de Ho Runda (7.56 yuan 002005.CH/, hold), Sanan Optoelectronics (600703.CH/ 13.73 yuan, not rated); 3 in their own specialty products have advantages, wait for the market to start the company such as KingSun (002638.CH/ 11.65 yuan, buy).