Weak to stay strong, LED industry interpretation of the strong constant strong story

LED industrial chain upstream and midstream strong enterprises recently "action" frequently. In the context of the industry to stay strong weak, with technical and financial advantages of enterprises are accelerating the development and integration, with a view to enhance the industry concentration in the first opportunity. An optoelectronic July 18th released a major contract announcement said, Shenzhen Siu chi to the light emitting diode chip of Anhui Sanan purchase amount of 500 million yuan. 500 million of the purchase amount, accounting for about LED of the company's 2012 operating income of. In July 17th, REFOND also announced that the company and TCL, canyuan (Yuxing company) set up a joint venture company, that TCL provides backlight and LED lighting device. Joint venture company registered capital of 200 million yuan, of which the company intends to own monetary funds invested $50 million, accounting for 25% of the registered capital of the joint venture company.

In addition, Elec-Tech had borrowed investment in NVC, also found the sea large chip production capacity. Borrow the main lighting enterprises downstream integration of sales channels, China gradually formed the upstream and downstream industry chain integration architecture, the basic shape of vertical integration. Some analysts believe that the company is gradually out of the performance of the integration period, the second half of the industry is expected to usher in a rebound in the overall demand for the background of the operating inflection point.

The industry chain in the strong positive layout, the industry is weak in the process of trying to force the interpretation of the strong constant strong story. Currently LED industry chain, especially the downstream lighting market competition pattern is very scattered, the size of the large and small enterprises flooded the market. While relatively strong upstream, internal integration has been basically completed. International experience, the vertical integration of the industry chain is an inevitable trend, from upstream to downstream product extension is the first choice for mergers and acquisitions.

A study said that the future of the industry will be more and more integrated development to the whole industry chain, downstream of the lighting market despite fierce competition but the market space is also very large, the military is a hotly contested spot. General lighting market is a large market capacity and smart phone market, the next 2-3 years LED lighting will be completed from 15% to 60% penetration. In fact, many companies are already in the layout. Such as Ruifeng in the consolidation of the backlight business, is quickly cut into the lighting market, especially in the field of active distribution of automotive lights. From the international experience, automotive lighting is the best profit margins in all areas of LED.

Haitong Securities Research believes that the scale can be bigger premise is that the product must be standardized, the future chips and light sources will be the most likely to appear in the LED industry, a large company. Changjiang Securities researcher Gao Xiaoqiang also said that the three optical is currently the most obvious LED leader for domestic vertical integration; REFOND, Jufei etc. rate rising by LED packaging market share in the backlight, and quickly enter the field of lighting. The future of these strong dynamic worthy of attention.