Small profits and quick turnover is not a way out of the long term LED lighting to catch a big fish

Electronic components industry in Ping An Securities recently released research report pointed out, LED short-term revenue slowdown does not change the long-term trend for the better, puerile excuses, not a way out, long-term development prospect is optimistic LED lighting business, investors concerned about the long-term investment opportunities in LED.

Research Report specifically pointed out that with the expansion of the late LED application, to further promote the rise of Chinese area forbidden Bering and India, Thailand and other countries in the Asia market, 2015, 2016 LED market growth trend will not change, the backlight demand will promote networking with the display screen the growth in demand caused by the growth of. Accordingly, continue to be optimistic about 2015, LED industry in 2016. Through the expansion of production capacity to control costs, and then seize the market with low-cost strategy will not be the way out of LED companies. LED if the enterprise wants to win, must make efforts in product differentiation, the upstream chip manufacturers because of technical barriers can temporarily maintain the advantageous position of the midstream packaging plants must be permeated to downstream applications, increasing the difference of their products, so that it can have a space for one person in the fierce competition for.

Ping An Securities continue to be optimistic about the long-term development prospects of LED lighting business. However, due to the fierce competition in the industry, the integration of internal resources (including horizontal integration and vertical integration) is an inevitable trend.

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