LED Industry:The Beginning of A New Period of Rapid Growth

LED lighting will really started in 2014, entered a period of 2-3 years of rapid
upward cycle.

LED lighting

LED lighting will really started in 2014, entered a period of 2-3 years of rapid upward cycle. Demand mainly by lower prices start driving. The main factor in the chip maker's profitability in 2014 will be better maintained, light sources and lighting manufacturers downstream growth comes mainly from the growth in demand, the middle reaches of the larger package of changes, led to this change in technology and changes in the upstream and downstream extrusion. We believe that LED industry, especially the integration of upstream and midstream will further accelerate, light sources and luminaires downstream market may diversified pattern. Channels and patterns of changes in the growth of the LED lighting industry to become a new element, whether it is electricity supplier or other patterns are likely to be cured of terminal manufacturers to break the traditional way of lighting channels. We recommend investors to "heavy ends in the middle merit", which focused on the subject and lighting configuration chip in the package section focus on risk and selective investments.

Flowers are not afraid late. We believe LED lighting industry in 2014 will begin a new growth cycle. The main factors driving the growth of the lighting that prices fell. Bulb prices LEDinside observation shows that in the past 12 months, prices fell terminal light bulbs more than 20%, and our research shows channel, 3.5W-5W bulb has been with more than a dozen W CFL is very close to the Chinese market.

LEDinside forecast 2014 output of LED lighting will reach $ 17.8 billion, the overall number of LED lighting products shipments reached 1.32 billion, an increase of 68%.

Diversification of sources and lighting manufacturers. We judge the structure of the light source and lighting manufacturers will present diverse features. We believe that the price of the end product will still continue to fall, light sources and lighting manufacturers on the one hand the cost pressures transmitted to packaging manufacturers; hand in terms of product design to further enhance digestion and margin pressure to some extent brought lower prices.

Variables large packaging manufacturers. We believe that, due to the short factors affect product prices fell and industrial chain, packaging manufacturers vulnerable to the upstream and downstream margins squeezed. And looking to extend the industrial chain, to become a new growth breakthrough 2014 -2015 packaging manufacturers imperative. Mergers and acquisitions, integration of external expansion will also become frequent in this area.

LED high-end electronics manufacturing industry attributes crescendo. We believe that the properties of electronic manufacturing LED lighting industry is growing. On the one hand, advances in technology to drive the cost of the chip industry's declining downstream end; the other hand, as the market demand amplification, the effectiveness of capital investment, cost control, management capacity in the market competition the role played by the more be bigger.

In addition to traditional semiconductor manufacturers in terms of channels to compete with traditional lighting manufacturers, but also the increasing emphasis on traditional lighting manufacturers in terms of production cost advantage and process control advantages.

Capital expenditures listed companies the ability to support long-term growth. LED lighting industry as electronics manufacturing, capital strength is an important guarantee for expansion. Listed companies have a greater advantage in terms of financing and capital expenditures. We statistics, beginning in 2010 -2014 A-share listed companies in the major LED through the IPO and additional financing of 17.6 billion, 9.6 billion are currently carrying amounts of cash, compared to non-listed companies with a significant capital advantage.