Lighting market to start LED into the long cycle of high prosperity

The evening of November 28th, the industry leader Sanan optoelectronics announced that the company ESOP accounts for Hing Securities Asset Management Limited company established by Xin Zhong No. 1 collection plan, as of November 28, 2014, the ESOP has purchased 50 million 301 thousand and 600 shares of company stock, the amount of 742 million 83 thousand and 900 yuan.

Previously, the eighth session of the third meeting of the board of directors, in 2014 third extraordinary general meeting of the "Sanan Optoelectronics (600184) shares Limited ESOP and the" bill, ESOP for the purchase of the shares the maximum amount of 930 million yuan.

Optimistic about the prospects for the industry based on an optoelectronic become the implementation of ESOP in LED stocks in the "number one crab".

Sanan optoelectronics is not the case.

Market expansion

Guotai Junan industry analysts believe that the current LED industry to benefit from the lighting market started, is ushering in the history of the best scene, and has entered the three year long boom boom.

LED can be divided into upstream chip, midstream packaging, downstream applications in three areas. According to reports, the main LED lighting, backlight, display three applications. Display is now saturated, the annual growth of about 10%-30%, TV backlight growth is not large, and LED lighting is explosive growth.

The United States LED lighting leading enterprises CREE (CREE) reported a third quarter of this year, sales of the company's LED lighting products rose 51% to $223 million over the same period, chip / components sales fell 20% to $173 million 600 thousand.

According to LEDinside estimates, in 2015 the total output value of the global LED lighting will reach $25 billion 700 million, accounting for 31.3% of the total output value of the overall lighting market. Industry is expected next year, European production capacity will account for 23% of the global LED lighting market, China accounted for 21%, the United States accounted for 19%.

As the world's largest lighting products production, consumption and export country, China's rapid growth in the size of the LED industry in 2013, the market size of more than 260 billion yuan.

The domestic, civil and road lighting and other public areas based on the needs of prediction of Ding Wenwu on the Ministry of electronic information division, domestic LED production will continue to maintain 20% to 30% growth next year. Development and Reform Commission, deputy director of resource conservation and environmental protection Lv Wenbin also expects 2015 LED lighting market share of 20% of the target will be achieved ahead of schedule.

In 2011, China issued "China phasing out incandescent roadmap", according to the national planning, October 1, 2014 to ban the import and sale of 60 watts and above ordinary incandescent lighting; in October 1, 2016 to ban the import and sale of 15 watts and above ordinary incandescent lighting. Incandescent lamps are eliminated, leaving the market space for energy-saving lamps have brought great potential for development.

At the beginning of last year, the national development and Reform Commission, Ministry of science and other 6 ministries jointly issued the "planning" semiconductor lighting energy industry, the average annual growth rate of output clearly promote energy-saving lighting industry LED about 30%, in 2015 reached 450 billion yuan, of which 180 billion yuan LED lighting applications. At the same time, the 2008 release of energy-saving lamps subsidy policy in the end of this year, in the industry view, the follow-up subsidy scheme is likely to be implemented on the LED.

The export side, the relevant data show that the first half of 2014 Chinese LED lighting products export value of about $4 billion 350 million, an increase of up to 135%; more than 50% of exports are mainly concentrated in the United States, the European Union and Japan, the traditional mainstream market, while growth in emerging markets, BRIC countries in the Middle East so quickly; the second quarter of 2014 to 9% in the Russian market share and 571% year-on-year growth, became one of China's second largest export market.

Good results

According to statistics, as of November 2014, the domestic LED lighting industry related stocks more than 80, of which the LED industry chain related concept of listed companies reached 22, with LED chip, packaging, display, outdoor lighting, supporting materials, equipment.

With the expansion of the market, the first half of 2014, the average growth rate of more than 30% LED sector revenue, ranking first in China's A shares in the industry sector in the first 29.

In July 31st, three optical semi annual report released in 2014, in the first half the company achieved operating income of 2 billion 177 million yuan, an increase of 30.03%; net profit attributable to shareholders of listed companies was 666 million yuan, an increase of 43.87%; basic earnings per share of 0.42 yuan, an increase of 31.25%.

In the semi annual report on the basis of beautiful performance, LED Industry Listed Companies in the three quarter results continue to improve.

Sanan optoelectronics before 2014 three quarter operating income of 3 billion 478 million yuan, an increase of 32.16%; attributable to shareholders of listed companies net profit of 1 billion 50 million yuan, an increase of 38.02%. Due to the large and medium size, intelligent mobile phone industry, the rapid growth of the industry market share increased, Jufei before the three quarter total revenue of 761 million 17 thousand and 800 yuan, an increase of 43.54%; net profit of 131 million 202 thousand and 900 yuan, an increase of 34.40%. Similarly, LED devices and large-size backlight boost the country star power in 2014 before the three quarter performance of high growth, the first three quarters of 2014, the company achieved operating income of 1 billion 140 million yuan, an increase of 39.1%; attributable to shareholders of listed companies net profit of 100 million yuan, an increase of 35.3%; basic earnings per share of 0.23 yuan.

Merger trends

In the process of LED lighting industry matures, merger and acquisition integration is an inevitable process.

A new round of LED M & a tide has begun.

2014 LED lighting industry and mergers and acquisitions surge. According to statistics, more than 100 cases of mergers and acquisitions, and mergers and acquisitions amount of more than $10 billion. Where LED industry