[Source: "New Industry" August 2013 issue Reporter / Tang Guirong] Since June, the stock market has plummeted, but the LED sector has been fierce. The shares of Sanan Optoelectronics and Dehao Runda have successively increased their daily limit, exceeding 50%. . Does this mean that new investment opportunities in the LED industry are emerging?
Recently, Zhang Xiaofei, Dean of the Higher Industrial Research Institute (GGII), attended a meeting of listed companies sponsored by Ping An Securities and Huatai Securities. At the conference, Zhang Xiaofei reviewed and analyzed the investment situation and opportunities of the overall LED market and industry chain in China in 2012, and predicted the development of the LED industry in 2013.
Zhang Xiaofei believes that LED technology and capital investment are not directly proportional to the industry's gross profit margin. Overall, the LED industry is losing money in the upstream; the supply and demand in the middle reaches are relatively balanced, basically forming a market situation in which large factories make big money and small factories make small money; downstream differences are more obvious, there are more manufacturers, fierce channel competition, and oversupply of the market, so Big factories do not necessarily make money, and small factories do not necessarily make money.
According to GGII statistics, in 2012, the national LED output value reached 205.9 billion yuan, a year-on-year increase of 34%, and the growth rate was slightly higher than expected; LED output value is expected to increase by more than 30% in 2013.
Compared with the fierce situation in which the LED industry killed each other in the past two years, the overall market situation in 2013 was obviously better. At the same time, Zhang Xiaofei also pointed out that the LED industry has developed into a critical period this year, and industry integration has emerged, and enterprises need to be prepared.
The industry's major integration performance is: First, in the mature fields such as display screens and lighting, competitive exits and mergers and acquisitions have begun to emerge; second, lighting companies have become the most popular integration targets, especially lighting companies with technology and channels; Third, almost every LED listed company is looking for integration targets, and even some sapphire epitaxial chip companies have voluntarily withdrawn and sought to be acquired.
Upstream mergers and acquisitions
GGII statistics show that the new planning investment in China's LED industry has shown a downward trend in 2011-2012. Among them, the proportion of epitaxial chip investment decreased from 46% in 2011 to 10% in 2012; the proportion of sapphire investment decreased from 19% in 2011 to 14% in 2012.
Although the investment in LED sapphire substrate has passed, the production capacity is still severely over-supplied and the market situation is very serious. The average annual price of sapphire is 35% lower than two years ago; in June this year, it was down 17% compared with the beginning of the year. In 2013, the LED sapphire substrate industry entered a competitive phase-out period, and most sapphire projects will be forced to withdraw or shelve.
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Recently, Zhang Xiaofei, Dean of the Higher Industrial Research Institute (GGII), attended a meeting of listed companies sponsored by Ping An Securities and Huatai Securities. At the conference, Zhang Xiaofei reviewed and analyzed the investment situation and opportunities of the overall LED market and industry chain in China in 2012, and predicted the development of the LED industry in 2013.
Zhang Xiaofei believes that LED technology and capital investment are not directly proportional to the industry's gross profit margin. Overall, the LED industry is losing money in the upstream; the supply and demand in the middle reaches are relatively balanced, basically forming a market situation in which large factories make big money and small factories make small money; downstream differences are more obvious, there are more manufacturers, fierce channel competition, and oversupply of the market, so Big factories do not necessarily make money, and small factories do not necessarily make money.
According to GGII statistics, in 2012, the national LED output value reached 205.9 billion yuan, a year-on-year increase of 34%, and the growth rate was slightly higher than expected; LED output value is expected to increase by more than 30% in 2013.
Compared with the fierce situation in which the LED industry killed each other in the past two years, the overall market situation in 2013 was obviously better. At the same time, Zhang Xiaofei also pointed out that the LED industry has developed into a critical period this year, and industry integration has emerged, and enterprises need to be prepared.
The industry's major integration performance is: First, in the mature fields such as display screens and lighting, competitive exits and mergers and acquisitions have begun to emerge; second, lighting companies have become the most popular integration targets, especially lighting companies with technology and channels; Third, almost every LED listed company is looking for integration targets, and even some sapphire epitaxial chip companies have voluntarily withdrawn and sought to be acquired.
Upstream mergers and acquisitions
GGII statistics show that the new planning investment in China's LED industry has shown a downward trend in 2011-2012. Among them, the proportion of epitaxial chip investment decreased from 46% in 2011 to 10% in 2012; the proportion of sapphire investment decreased from 19% in 2011 to 14% in 2012.
Although the investment in LED sapphire substrate has passed, the production capacity is still severely over-supplied and the market situation is very serious. The average annual price of sapphire is 35% lower than two years ago; in June this year, it was down 17% compared with the beginning of the year. In 2013, the LED sapphire substrate industry entered a competitive phase-out period, and most sapphire projects will be forced to withdraw or shelve.
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