Continuing last year's fiery market, the LED industry is booming in the capital market. Industry sources frankly stated that the US sales channel is different from the domestic market and it is not easy to open up the market. In spite of this, Yang Yong, general manager of Sun Lighting, is still optimistic: “The industry’s total profit will increase by at least 20%.”
The performance of the blue-chip company will double
LED lighting products shined in the fields of commercial lighting and home lighting. For the first time, LED indoor lighting applications surpassed outdoor landscape lighting and grew at over 80%. The fiery in the downstream lighting industry also benefits the upstream and midstream companies in the LED industry chain.
"This year, commercial lighting will bear fruit and home lighting will start quickly." Guan Yong is full of confidence in this year's market at the high industrial production and research emerging industry investment strategy meeting. He believes that the opening of the downstream market will bring huge profits to the entire industry chain, and the upstream chip overcapacity situation has been effectively eased.
In the past few years, various local governments issued subsidy policies for imported LED epitaxial chip production equipment, which led to a large number of upstream chip manufacturers outsourcing production equipment, resulting in overproduction of local production capacity for low-power chips. However, the LED lighting market started last year, digesting some of the production capacity. “At present, the chip market basically reaches a balance.” Zhang Xiaofei, president of the senior engineer LED, said in an interview.
Under this situation, Sanan Optoelectronics, a leading chip manufacturer in China, recently launched a private placement and raised funds to double its original capacity.
"Good companies, profits should at least double, companies with a profit growth rate of only 50% may have problems." Guan Yong believes that the LED market in the capital market experienced a round of rises last year, and most listed companies this year can Expect market expectations. However, under the general trend of industry consolidation, small companies with weak financial strength will have a crisis.
Traditional packaging manufacturers are facing a crisis
Rui Xiaoming, technical director of Ruifeng Optoelectronics, foresees the crisis of industry consolidation. However, he believes that the crisis does not come from funds but from technological changes.
"Packaging technology changes, the traditional packaging companies will face a survival crisis." Xiaoming said that the industry began to rise within the chip-level packaging technology, and the future of this technology is mature, there may be upstream chip manufacturers directly skip the packaging vendors to provide downstream application vendors Lamp beads, the traditional packaging manufacturers in the middle will be "short circuited."
"The integration of chip manufacturers and packaging manufacturers is an inevitable trend of the industry." Xiaoming believes that at present, some manufacturers have begun to try to integrate the middle and upper reaches of the industry chain, and individual companies even have the situation of integration of the entire industry chain. For example, the chip manufacturer Tong Fang shares recently acquired Hong Kong stock company, Neo-Neon, to expand downstream.
Guan Yong believes that the real purpose of the acquisition of Zhen Mingli by Tongfang is to look at the company's sales channels in overseas markets. The company’s lighting products once accounted for 50% of the overseas market.
Talking about the US market, Guan Yong frankly said: "The US sales channel is mainly supermarkets, and it is very difficult for domestic brands to enter the United States." At present, in the US market, old lighting brands such as Philips and OSRAM are still relatively strong, and the LED lighting company, Corey, also performed well. More prominent.
"Domestic companies entering the U.S. market are mainly based on OEMs." Analysts believe that the OEM mode is the process of shifting U.S. LED lighting production capacity to China. Although the profit margin is low, there is still room for it.
