Opple's suspension of IPO does not change the trend of LED lighting industry listings, the industry may be reshuffled

Although Opple Lighting admitted to suspending the IPO, it is difficult to change the new round of listing boom in the domestic LED lighting industry.

Yesterday, Wu Yiming, secretary of the board of directors of Op Lighting, confirmed to reporters that Op Lighting had indeed suspended its IPO. "But this is normal. More than 500 companies queuing up for listing have encountered this situation." He explained that Opple Lighting's previous application materials for listing reported performance in 2013, which had expired by the end of June this year. "We will resume the approval process when we report the results of this year's mid-term report in mid-to-late September. The listing of Opel is currently progressing normally."

LED lighting will usher in the market trend

Less than a month after the opening of the IPO gate for the second time this year, the China Securities Regulatory Commission suddenly announced on July 4 that 589 of the 637 IPO applications that had been accepted and disclosed in advance by the Shanghai and Shenzhen exchanges had suspended their review, including LED lighting companies and material supporting companies such as Opple Lighting, Ocean King Lighting, and Shengdi Optoelectronics.

"This matter is greatly affected by policy factors. Financial time points are strictly controlled, and most data updates do not meet the requirements. On the surface, this is an increase in requirements. In essence, it is because the IPO pressure on the securities market is high. The government wants to control the pace and does not want so many companies to be listed together in the second half of the year." Zhang Hongbiao, research director of the Gaogong LED Industry Research Institute, analyzed.

Zhang Hongbiao believes that among the LED companies in the domestic A-share market before, they mainly focused on chips, packaging, and displays. The only terminal lighting company was Qinshang Optoelectronics, which mainly focused on outdoor lighting products, and there was no indoor lighting company. At present, the cost performance and industry scale of LED lighting products have met the requirements for listing. Therefore, it is normal for lighting companies to rush to go public.

Opple is one of the leading companies in traditional lighting and is accelerating its transformation to LED lighting. Zhang Hongbiao said that before the emergence of LED emerging companies, Opple Lighting was not in a hurry to go public because it mainly focused on home lighting and had a stable position. Even if it did not go public, it could still compete with NVC, Sanxiong and others.

But now, emerging LED lighting companies are vying to go public, such as "Mulinsen" has "passed the meeting." This year, Mulinsen held a dealer conference, with 5,000 dealers attending, and its stores are expanding rapidly. If it is not listed on the market, Opple Lighting will be easily surpassed.

In May this year, Opple Lighting submitted a listing application. At the Guangzhou Lighting Exhibition in June this year, Op Lighting CFO Jin Xin told this reporter that the LED lighting industry is in a period of growth and transformation, and Op Lighting hopes to perform well in terms of revenue and profits this year.

Wu Yiming revealed that Opple Lighting’s strategy this year: First, focus on the domestic market, with more than 90% of revenue coming from domestic sources in 2013; second, commercial lighting and household lighting “fly together”, with commercial lighting growing faster than household lighting; third, strengthening household channels, commercial channels and overseas channels. "We are developing rapidly overseas and have set up branches in Dubai and other places."

The industry may be reshuffled

According to statistics from the Gaogong LED Industry Research Institute, there are about 20 domestic listed companies with the LED industry chain as their main business, and there are 60 to 70 listed companies involved in LED.

Currently, 100 to 200 LED companies have completed joint-stock reform and are preparing to go public. Zhang Hongbiao predicted, "Judging from the current situation, if not affected by macro factors, at least 10 LED companies in this batch can be listed. Not only LED lighting, but also accessories companies can also be listed."

Even if the IPO is suspended, these LED companies will quickly update their data and re-apply. Because the LED lighting industry is now in a period of rapid growth, firstly, companies have a very large demand for funds; secondly, strategic investors have constraints on the time for listing.

"IPO has been closed for more than a year, and too many LED companies are waiting to be listed, depending on who has the opportunity and good luck." Zhang Hongbiao said that although there are many companies that want to be listed, it is easier for companies to meet the conditions. Restrictions on IPOs have been relaxed. Previously, the requirements for three consecutive years of revenue and profit growth have been lowered.

He estimates that the new round of LED lighting listing boom will bring more merger cases and promote industry reshuffle. In the future, LED lighting will attract more attention in the capital market. "Increasing revenue without increasing profits is the overall situation of the industry. Some companies will increase profits when they grow to a certain scale, but their gross profit margins will go down. This year, the situation of increasing revenue without increasing profits will improve in the upper and midstream LED industries."

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Opple's suspension of IPO does not change the trend of LED lighting industry listings, the industry may be reshuffled

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