Leveraging the capital market Guangdong jump for LED lighting developed areas

Along with the rapid process of urbanization in China, low-carbon economy, green environmental protection concept deeply rooted, semiconductor lighting industry, in recent years has become a hot industry listed company in Guangdong, Guangdong also has become one of the most developed regions for the domestic LED lighting industry. Under the dual background of policy support and market demand, Guangdong LED industry showed explosive growth.

Rush into the capital market

In the past two years, the average growth rate of the output value of Guangdong's LED industry more than 40%, in 2010 the province's LED industry output value of 85 billion 300 million yuan, nearly 3000 enterprises, the industrial scale accounted for about 50% of the country, the output value and scale are ranked first in the country. 2011 Guangdong LED industry reached 150 billion yuan, the output value and the scale continues to rank first in the country. Expected by the end of 2012, Guangdong LED industry is expected to become the output value of over 300 billion yuan of new industrial clusters.

The face of international and domestic blowout market, mergers and acquisitions at home and abroad to accelerate the process of integration of upstream and downstream enterprises, the traditional lighting companies, state-owned capital, private capital swarmed into, set off LED investment boom.

In recent years, Guangdong has a number of LED company successfully knocked concept of capital markets, listed on the Shenzhen Stock Exchange has nationstar, honglitronic, KingSun, Lehman photoelectric, REFOND optoelectronics, Chau Ming technology, as well as the upcoming landing small plate of Zhongshan m.l.s electronics company. The traditional lighting companies involved in LED industry companies have listed on FSL, Fanta, Wright; halfway reached the LED of Guangdong, A, Konka, Elec-Tech Gan Hua Han's laser, or they are backdoor, or to mergers and acquisitions, or to increase their investment in a variety of ways to enter the LED industry etc.. There are dozens of joint-stock enterprises have completed the transformation of LED companies, but also opportunistic access to capital markets.

GF Securities Investment Bank, Mr. Zhao commented: Guangdong's LED companies seeking to market, both to show the strong desire to do bigger and stronger, but also the enterprise itself from the mess in the withdrawal of consideration. After the listing, the company has more financial strength and expansion of power, driven by capital, big fish eat small fish will be staged frequently, LED industrial clusters in the Pearl River Delta region.

And the Pearl River Delta

Up to now, Shenzhen, Dongguan, Foshan, LED industry has been listed as pillar industries. Shenzhen introduced the "LED industry development plan" in Shenzhen City, Dongguan introduced "to promote the development of LED industry and application demonstration work plan" in Dongguan City, Foshan will also focus on the development of new light industry as one of the industry.

From the perspective of regional industrial development, Guangdong LED industry to the most concentrated in Shenzhen, followed by Guangzhou, other more concentrated areas include Zhuhai, Foshan, Dongguan, Zhongshan, etc.. Among them, the city of Shenzhen LED industry strong development strength, become the main production area of LED solar light the world's largest production and supply base, LED backlight major global production and supply base, LED display the largest production and supply base, LED packaging and LED lighting. The number of LED enterprises in Guangzhou is not high, but the concentration is high, driving ability is strong, in the domestic LED industry in the high-end level, with a certain degree of innovation and sustainable development potential.

Wang Dianfu, President of the Federation of Shenzhen LED industry, pointed out that the LED industry in Guangdong has shown the potential of full flowering, has formed a relatively complete industrial chain and supporting capacity, the cluster effect. More and more enterprises, especially the core technology of the upstream chip giant, have settled in Guangdong. These upstream chip giant settled, and further stimulate the development of supporting industries in the middle and lower reaches.

The weak trend

Guangdong, a number of cities will be LED industry as a pillar industry development, we all want to share in the field of LED, only Dongguan has more than and 200 LED companies. The projects, mostly concentrated in the downstream packaging field, has shown signs of duplication. This shows that although the Guangdong LED industry has formed epitaxy, chip, packaging and application of the industry chain, but in all aspects of the development is not balanced, showing a weak epitaxy, chip, packaging and application of strong link pattern.

In the upstream epitaxial wafer and chip field, due to the lack of core technology, it is difficult to get a major breakthrough in the short term. At present, the LED industry, upstream of the sapphire substrate overcapacity is most serious; the relative surplus of midstream packaging industry capacity, because the anti risk ability of the worst, the industry is expected by the end of nearly 10% of the enterprises have been eliminated; and the overall performance of the downstream LED application of the best. This can also be seen from the performance of Listed Companies in Guangdong LED concept of the stock price.

In May 1st last year, the national lighting electrical Standardization Technical Committee developed 5 LED standards began to implement. Industry sources, after the implementation of the national standard, the cost of each product will increase 8 yuan ~10 yuan, while some products on the market profit of only $3 or less. This also means that if the standards are strictly implemented, there will be a large number of LED companies were eliminated.

Li Xuliang, chairman of the Federation of Guangdong LED industry, pointed out that in the replacement of incandescent light source, LED development prospects are quite broad. However, with the market competition mechanism to play a role, those who do not have the strength and market positioning of the workshop will be eliminated.

Elec-Tech chairman Wang Donglei believes that the current semiconductor lighting industry has been facing more and more enterprises, small scale, lack of technological innovation ability, the majority of enterprises concentrated in low-end market, low water