Multiple Factors Warmer Resonance LED Industry

LED lighting

Since last December , the Shanghai index stumble endlessly , this week, the index once again return to the " 1 " era, but the market did not therefore devoid of hot , LED is one of the continuing good one. In mid-December 2013 , the U.S. news ignited the sale of incandescent LED sector to do more enthusiasm, but also a fundamental turn for the better on the LED industry driven . So out of the LED industry, whether serious excess capacity impasse , with a sustainable growth path it?

A -share market in a persistent hotspot support from two aspects : one is the positive change in the policy side , the second is the turn for the better the industry faces. LED sector is no exception , somewhat similar to the photovoltaic industry , LED industry, influenced by the policy , the government forced out of incandescent advance , bring opportunities for the rapid development of industry, and government subsidies increased the enthusiasm of businesses and residents , all of the LED the development has played an important role in promoting.

In fact since 2013, the domestic LED industry support policies on the continuous introduction of the National Development and Reform Commission and other six ministries jointly developed a " semiconductor lighting energy industry planning" , pointed out in 2015 , 60W incandescent lamp for general lighting above all eliminated , LED lighting energy industry output value of the average annual growth target is about 30% in 2015 to reach 450 billion yuan ( including LED lighting applications 180 billion yuan ) . Subsequently, the provinces have gradually introduced a corresponding support subsidies, such as the release of Guangdong LED recommended products catalog. The gradual implementation of these policies , so that the LED industry started out of the doldrums in recent years , and gradually turn for the better . In addition, according to the statistics , 60% of the domestic LED lighting products are sold abroad, the major markets in Western Europe and North America, and December 18 last year , the United States decided to sale sales market 's best-selling 40 -watt and 60 -watt incandescent, future triggered a huge market space in hot pursuit of funds in the market .

But relying on the good news, is unable to continue to attract capital inflows to a plate , but can not form a plate effect , which depends largely on improved industry fundamentals. After 2010, due to the encouragement and support throughout the policy , resulting in severe overcapacity in the LED industry , related businesses into a vicious competition , the industry boom continued downward , for example, the upstream chip market growth of 100 per cent in 2010 to 20% in 2012 . However, in 2013 , after the early intense price competition , out of part of the backward production capacity , the industry supply side began to shrink , according to Citic Securities estimates , MOCVD machine stock mainland and Taiwan about 1600 units , ineffective production capacity of about 600, currently part of the effective capacity of 1,000 units OEE about 80% , has been in a healthy level.

From the demand side, the backlight, LED lighting and display are three large demand , which accounted for the largest backlight , but with the 2013 revised downward backlight demand an end, and the potential market for one trillion lighting plate started , will push LED sector in 2014 began the explosive growth . In addition, from the corporate level also confirms the change in the demand side . According to SWS tertiary industry classification , LED plates have 20 stocks, which has 13 stocks in the third quarter of 2013, pre-hi , accounting for up to 65% , with an average growth rate of over 30%.