LED stock market recovery industry expansion plans are frequent under the counter attack

Capital market changing. Not long ago, the news of the abolition of the LED industry in Shenzhen was also planning to let the industry worried about the prospects for the LED, and even the emergence of a LED fear into the next photovoltaic pessimistic argument. Today, LED quickly counter attack, become the capital market darling". In May 24th, LED sector rose, Sanan optoelectronics, Lehman optoelectronics, BDO Runda, Yankon, KingSun, Guangdong Ganhua 6 shares a strong limit.

The reaction of the capital market is too much, and now there are still some distance from the outbreak of the LED market, but it is undeniable that the industry has come to the inflection point. A brokerage analyst who declined to be named in the daily economic news (micro-blog), an interview with reporters, said.

Thanks to the recovery of the industry, Sanan optoelectronics, KingSun, crystal Sheng Electrical and other companies have launched their own expansion plans. In this regard, insiders said Zhao Fei, 2010 LED investment in the two years since the substantial expansion of industry overcapacity in the embarrassing situation, now the industry should do some more of the industry chain integration, rather than a large amount of direct investment.

Obvious signs of recovery this year

Guangdong province semiconductor light source industry association data show that this year, LED enterprises in good order, representing an increase of 20%~30%, foreign trade in domestic sales, profits fell slightly, but the difference was not significant, the industry clearly signs of recovery.

According to a quarterly in 2013, LED industry 25 key companies total operating income of 9 billion 888 million yuan, an increase of 12%, the total net profit of $719 million, down by 3%. Among them, the reduction in subsidies is one of the reasons for the decline in net profit.

Semi annual data will be better. The analyst said. He explained that after two years of price cuts and closures, LED industry more rational than before, plus all favorable policies frequent, the future will usher in a small peak, but this does not mean that LED can be produced in a short period of time, the market will be a steady growth trend.

Price, Zhao Fei said that the first two years of price surges have reached a certain stage, although prices will decline this year, but the magnitude is relatively small, the situation is not expected to increase income is not conducive to change.

Since 2013, LED have favorable policies. In January, the Ministry of Finance issued "on the adjustment of publication of the notice" thirteenth energy-saving products in government procurement list, after the adjustment of the procurement list was added to lighting products, involving a total of 84 companies in the LED street lamp / tunnel lamp, LED lamp, self ballasted lamps reflective LED three products; in February, six ministries jointly issued "planning" semiconductor lighting energy industry; in addition, Jiangxi, Fujian, Guangdong and other places have introduced policies to support the development of the LED industry. It is also considered as one of the important factors in the LED industry ushered inflection point.

CITIC Building a research report said that in 2010 the global LED industry capacity expansion, resulting in the next two years, the application of downstream demand continues to be weak, the market supply and demand imbalance. 2013, this irrational and out of order investment sentiment has ended, the industry tends to health. However, the report warned that the market competition is still fierce, product prices will continue to decline.

The industry said LED or now the whole tide

Strong market demand is bound to stimulate the industry to further expand production capacity. Zhao Fei said that now LED industry is difficult in 2010 large-scale direct investment grand occasion, the enterprise is more use of their own advantages on the integration of the industrial chain.

The aforementioned CITIC construction investment report also expressed their views on this view. The report said, with the advantages of resources began to lead the whole wave. In the foreseeable future, the group of integrated resources can bring a stable operating system, as well as the development of their own advantages to further reduce costs, reduce the price.

In fact, LED expansion, mergers and acquisitions case is being staged.

Sanan optoelectronics announced after the issuance of 6 billion 300 million yuan, up stranded in Wuhu the two phase of the project two months, companies want to re plan to start the project, tentatively scheduled to be given by way of financing for the project. Over the past 10 days, three optical shares soared nearly doubled.

Sanan optoelectronics chairman Lin Xiucheng told reporters in Wuhu, the two phase of the project planning has been done, plant construction is completed, waiting for funds to buy equipment. At present, the company has a total of 144 sets of MOCVD main equipment, the production rate of about 85%, if the Wuhu launched the two phase, the production capacity will be doubled. For the outside world on the upstream epitaxial chip, chip overcapacity argument, Lin Xiucheng denied.

Coincidentally, Jing Sheng Electrical recently announced that the company intends to use the raised funds of 80 million yuan and central shares in Inner Mongolia to set up Inner Mongolia crystal ring Electronic Materials Co., Ltd., invested in the construction of an annual output of 25 million mm sapphire crystal rod project.

In addition, KingSun chairman Li Xuliang shareholders' meeting in 2012 this year, Yu Jian 1000 sales terminal. In this regard, Zhao Fei said that in the short term, it is difficult to improve the performance of the terminal layout to bring a big upgrade, if successful financing, good long-term development of the company.