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2014 LED industry profits increased two percent

Writer:Nine positive netSource:Nine positive net Number of visits: Date:2014-07-15

Continuation of last year's hot market, LED industry to open in the capital market that is subject to blitz. The logic behind the market speculation that the United States in 2014 to ban incandescent light, LED lighting is expected to replicate last year's European market. Industry sources admitted that the United States is different from the domestic sales channels, marketing is not easy. Still, the sun lighting (16.83, 0.10, 0.60%), general manager of the official Yong still optimistic: "2014, the industry profit growth of at least 20%."

Blue chip company performance will double

2013, LED lighting products in the field of commercial lighting and home lighting shine, LED interior lighting applications for the first time beyond the outdoor landscape lighting to more than 80% growth. Hot downstream lighting field, but also benefit the upstream LED industry chain enterprises.

"This year will bear fruit for commercial lighting, home lighting will prompt start." Brave officer in the Engineering industry and research emerging industry investment strategy conference for this year's market confidence. He believes that the downstream market opened, will bring huge profits of the whole industry chain, the upstream chip overcapacity situation has been effectively alleviated.

Over the past few years, the local government introduced on imports of LED epitaxial silicon production equipment subsidies, resulting in a large number of upstream chip manufacturers outsourcing production equipment, resulting in local production capacity over the Lions in a low-power chip oversupply). However, last year, LED lighting market starts to digest some capacity. "The current situation, the chip market has basically reached equilibrium." Said senior engineer Zhang Xiaofei LED president told reporters.

In this situation, the domestic chip manufacturers leading enterprises Sanan Optoelectronics (24.18, 0.06, 0.25%) recently launched a private placement to raise funds, the original capacity expansion doubled.

"Good business, in 2014 profit should be at least doubled, only 50% of the profit growth companies may have problems." Official Yong believes that the capital markets LED sector experienced a rise in the last year, the majority of listed companies can deliver market expectations. However, under the trend of industry consolidation, financial strength is not strong small businesses will have a crisis.

Traditional packaging manufacturers in crisis

Ruifeng power (12.080, 0.00, 0.00%), technical director Pei Xiaoming sensed that industry consolidation existential crisis, but he believes the crisis does not come from money but technological change.

"Packaging technology change, traditional packaging companies will face a crisis of survival." Pei Xiaoming said that the industry began to rise after the current chip-scale packaging technology, the future of this technology is mature, it may appear to skip the upstream chip manufacturers packaging manufacturers to downstream applications vendors lamp beads, midstream traditional packaging manufacturers will be "short circuit."

Chip manufacturers and packaging manufacturers integration is an inevitable trend in the industry." Pei Xiaoming believes that the current number of vendors have started on the middle reaches of the industrial chain integration attempts, the situation of individual enterprises and even the whole industry chain integration. For example, the chip maker shares the same side (10.99, -0.04, -0.36%) recently acquired the Hong Kong stock company Neon, downstream expansion.

Officer Yong believes that the acquisition of shares in the same side of the real purpose is really bright fancy the company's sales channels in overseas markets, the company's lighting products once accounted for 50% of the overseas market.

Turning to the U.S. market, the official Yong admits: "American supermarket sales channels mainly domestic brands is difficult to enter the United States." Currently, in the U.S. market, a veteran lighting brand Philips, Osram and other products are still relatively strong, LED lighting company Cree performance is more prominent.

"Domestic enterprises to enter the U.S. market, mainly in OEM-based." Xiaofei think, foundry model is a process of the United States LED lighting production shift to China, despite lower margins, but there is still space.
 

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