The overall analysis of Listed Companies in LED industry

Semiconductor lighting is listed as an important development direction of China's seven strategic emerging industries, in promoting the concept of energy saving and emission reduction and low carbon economy, as technology continues to break, the new application of the rapid development of semiconductor lighting has become the hot spot for investment in china. 2009 national semiconductor lighting project total investment (including the planned investment) of more than 20 billion yuan, industrial investment of about $30 billion in 2010. FSL, NVC, audio (Ya Ming bulb), Yankon and other traditional lighting companies have listed attention and entered the field of semiconductor lighting, industrial transformation and upgrading has opened the curtain. The number of listed companies through acquisitions or raise funds to enter the field, there are a number of semiconductor lighting private enterprises have been listed or actively preparing for listing to raise funds to expand the scale, BYD, Tsinghua Tongfang and rainbow group, Changhong group, China Dianke group, Sinoma Group and other large state-owned enterprises have begun to invest in the semiconductor lighting industry.

At present, a total of 4 domestic led to the main business of listed companies, with the concept of LED is related to more than and 30 listed companies, LED listed companies although the average size is relatively small, but the benefit of strategic emerging industries and the energy saving and environmental protection, the overall performance of the LED industry, the rapid development of future period. Especially in 2010 and in the year of the year of the year of 2011. The overall profitability of the industry is higher than the market average, and has broad prospects for development. LED industry has also been favored by investors, the securities market has the potential for development and influence of the investment field, some of the company's share price rose nearly 3 times.

First, good growth

LED the overall size of the industry is small, the average total assets of less than 2 billion yuan before 2009, in the third quarter of 2010 reached $2 billion 622 million. But from the financial indicators of the annual growth rate of LED industry, the listed companies related to the size and income increased, the whole industry have good growth, rapid growth in recent years, especially in the last two years, showing explosive growth trend (Figure 1). 2009, the third quarter of 2010, the average total assets of the industry growth rate was 17.39%, 88.36%. The main business for the four listed companies LED total assets growth rate to the third quarter of 2010 is to reach more than 315.05%. As part of the company is planning to enter the LED industry or increase its investment, the growth rate of the industry as a whole will be faster in the future.

2008 to the third quarter of 2010, the industry's main business revenue growth of 8%, respectively, 6% and 22%, while the industry net profit growth of -36%, respectively, and 169%. Data show that the LED industry rose rapidly after the financial crisis, the fastest growth in 2010.

The financial indicators in Figure 1 2006 -2010 in the three quarter of the listed companies

Two, strong profitability

2006 to three quarterly bulletin shows that the operating performance of the LED industry has a more prominent performance, strong profitability of the. The main business profit rate and the rate of return on net assets are higher, and some financial indicators declined slightly after 2009, 2010 through 2008, the rapid growth of the main reasons for the impact of the 2008 outbreak of the global financial crisis, the crisis after the rapid rebound in LED industry. The average main business profit rate of LED industry in 2006 to the third quarter of 2010 remained above 15%, the average main business profit rate of the industry only in the third quarter of 2010 reached 27%, net profit plus fourth quarter of the year is expected to be more than 30%. Four listed companies in 2007 -2010 in the third quarter of the main business profit margins are more than 30% in the third quarter of 2010 reached 42.41%, is expected to exceed the annual total of more than 45%.

From looking at the rate of return on net assets, in 2007 the industry average total assets yield level is higher, reaching 13.43%, during the financial crisis, yields declined, but from 2008 -2010 in the three quarter, gradually increased, respectively 12.77%, 12.87% and 12.26%. As the industry continues to increase the number of listed companies, the four main net assets of the return on assets is declining year by year, but its average is still higher than the average level of the entire LED industry. The Lehman photoelectric third quarter 2010 net assets yield reached 38.55%, followed by Elec-Tech, net assets yield of 29.37%. This shows that the quality of the assets of LED listed companies is relatively good, reasonable asset allocation, high resource utilization, market demand, the overall profitability of the industry, the development of large space.

Three, higher investment income

2009 and the third quarter of 2010, the LED industry average net assets per share were $2.66 and $4.09, its growth rate was 10% and 54%. Four main LED listed companies average net assets per share growth is higher than the industry average, respectively, $2.99 and $7.97, an increase of 56% and 167%.

Nearly 3 years of LED listed companies average earnings per share were 0.22 yuan, 0.26 yuan and 0.39 yuan, the four main LED listed companies in recent 3 years, the average earnings per share reached 0.48 yuan, 0.71 yuan and 0.70 yuan, the average level that its profitability is much higher than that of the whole industry.

The company's price earnings ratio indicators in addition to 2008, the average price earnings ratio of the entire LED industry over the past 5 years were more than 50 times. Because the LED industry is an emerging industry, has good prospects for development, coupled with the 2009 Chinese securities market unpopular, in 2009 the entire LED industry average price earnings ratio reached 242 times, far more than the average price earnings ratio in shanghai. In the first three quarters of 2010, the price earnings ratio of the main LED listed companies was 71.69, more than the average level of the whole industry of 62.74 times.

Due to the impact of the financial crisis, in 2008 the average market value of LED industry was 2.35,